Can Focalpoint Coaching designate a separate entity to operate the Advertising and Development Fund?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
se payments are different from those which are not designated by suppliers to be used exclusively for advertising or similar purposes and which Franchisor and Franchisor's affiliates therefore may use for any purposes Franchisor and they deem appropriate, as provided in Subsection 8.B above.)
Franchisor may designate a separate entity as Franchisor deems appropriate in its sole discretion to operate and administer the Fund. Any such entity will have all of the rights and
duties as specified in this Section. Franchisor will direct all programs that the Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The Fund may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce Website and/or related strategies; administering regional and multi regional marketing and advertising programs, including, without limitation, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
The Fund periodically may give Franchisee samples of advertising, marketing, and promotional formats and materials at no cost. Franchisor will sell Franchisee multiple copies of these materials at Franchisor's direct cost of producing them, plus any related shipping, handling, and storage charges.
Franchisor will account for the Fund separately from Franchisor's other funds and not use the Fund for any of Franchisor's general operating expenses.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching has the authority to designate a separate entity to manage and operate the Advertising and Development Fund. This decision is at Focalpoint Coaching's discretion. If a separate entity is designated, it will assume all the rights and responsibilities outlined in the relevant section of the FDD. Focalpoint Coaching retains control over the programs financed by the fund, including creative concepts, materials, endorsements, and their placement.
This means that Focalpoint Coaching can outsource the administration of the fund to another company if they deem it appropriate. This other entity would then be responsible for the day-to-day operations of the fund, but Focalpoint Coaching would still maintain control over how the money is spent and what advertising and marketing programs are implemented.
For a prospective franchisee, this indicates that the management of the advertising fund may not always be directly handled by Focalpoint Coaching. While Focalpoint Coaching retains control over the fund's direction, the actual administration could be delegated. It's important for franchisees to understand that the franchisor has the right to make these changes and that the franchisee may not have direct input into who manages the fund.
Focalpoint Coaching also reserves the right to incorporate the Fund or operate it through a separate entity whenever Focalpoint Coaching deems appropriate. The successor entity will have all of the rights and duties specified in this Subsection 9.A.