When are 'Brand Damages' fees due to Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Submit Required Reports | $75 | As incurred | If you fail to send us the reports required by the Franchise Agreement, we may debit your account this amount on the 5th day of the month following your failure to submit the require reports. |
| Costs and | Will vary under | As incurred | Due when you do not comply with the |
| Attorneys’ Fees | circumstances | Franchise Agreement. | |
| Brand Damages | Will vary under circumstances | As incurred | Due only if you terminate the Franchise Agreement before it expires, in which case you must pay us for all Brand Damages related to the early termination. See Note 6. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us for claims from your Franchised Business’ operation. |
Source: Item 6 — Other Fees (FDD pages 14–20)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Brand Damages are due 'as incurred.' Specifically, these fees are levied only if a franchisee terminates the Franchise Agreement before its expiration. In such cases, the franchisee must compensate Focalpoint Coaching for all Brand Damages related to the early termination.
The FDD further clarifies that Brand Damages encompass a wide range of potential losses and expenses. These include direct and indirect costs linked to the early termination, such as lost royalties, lost profits, loss of goodwill, and damage to Focalpoint Coaching's marks and reputation. The definition also extends to lost opportunities, travel and personnel costs, expenses incurred in finding a replacement franchisee, and any other lost payments or benefits Focalpoint Coaching would have received for the remaining term of the Franchise Agreement.
This fee structure means that a Focalpoint Coaching franchisee who chooses to end their agreement prematurely could face significant financial obligations. The amount will vary based on the specific circumstances of the termination and the extent of the damages claimed by Focalpoint Coaching. It is important for prospective franchisees to carefully consider the potential implications of early termination and to fully understand the factors that could contribute to Brand Damages, as these could represent a substantial financial risk.