For Focalpoint Coaching, what is the estimated useful life for furniture, fixtures, and equipment when calculating depreciation?

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the estimated useful life for furniture, fixtures, and equipment is between 3 to 10 years when calculating depreciation. This means that Focalpoint Coaching depreciates these assets over a period ranging from a minimum of 3 years to a maximum of 10 years, utilizing either the straight-line or declining balance method.

For a prospective franchisee, this depreciation timeframe is relevant for understanding how the initial investment in these assets will be accounted for over time. The depreciation method used (straight-line or declining balance) will impact the annual expense recognized on the income statement. The FDD specifies that Focalpoint Coaching uses both methods.

The choice between a 3-year or 10-year depreciation schedule can significantly affect a franchisee's reported profits in the early years of operation. A shorter depreciation period (3 years) results in higher depreciation expenses and lower reported profits initially, while a longer period (10 years) spreads the expense over a longer time, resulting in lower annual depreciation and potentially higher reported profits in the short term. However, it's important to note that the total depreciation expense will be the same over the asset's useful life, regardless of the method or timeframe chosen.

Prospective Focalpoint Coaching franchisees should consult with a financial advisor to understand the implications of these depreciation methods on their specific financial situation and tax obligations. They should also inquire with Focalpoint Coaching about the specific factors that determine where within the 3-10 year range a particular asset will be depreciated, as this can influence their financial planning and projections.