What was the cost of Focalpoint Coaching's treasury stock per share?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| STOCKHOLDERS' DEFICIT | |||||||
|---|---|---|---|---|---|---|---|
| Common stock, | $.001 | par value; | authorized | ||||
| 67,260 shares; issued and outstanding | $ | 100 | $ | 100 | |||
| Treasury stock, | $.001 | par value; | $10 | cost; | |||
| 32,743 outstanding | (10) | (10) | |||||
| Retained deficit | (237,280) $(237,190) $822,940 | (249,741) $(249,651) $641,697 |
Source: Item 23 — Receipts (FDD pages 57–259)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the treasury stock has a par value of $0.001 per share and a cost of $10. This indicates that Focalpoint Coaching repurchased its own shares at a price significantly higher than the par value. The total value of the 32,743 outstanding treasury shares is ($10).
For a prospective franchisee, this information provides insight into Focalpoint Coaching's capital structure and how it manages its equity. Treasury stock is often repurchased when a company believes its stock is undervalued or to reduce the number of shares outstanding, potentially increasing earnings per share.
However, the figures provided show a negative value for the treasury stock, which is unusual. It is important to note that the table presents a snapshot of the company's financial position and that further investigation may be required to fully understand the implications of the treasury stock for the franchisee.