Where in the Focalpoint Coaching Franchise Agreement can I find information about the Initial Franchise Fee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
The following paragraph is added at the end of Item 3 of the Disclosure Document:
Except as disclosed above, neither we nor any person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, 15 U.S.C.A. Section 78a et seq., suspending or expelling such person from membership in such association or exchange.
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
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- OUR WEBSITE, www.focalpointcoaching.com, HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
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- The Department has determined that either the franchisor has not demonstrated it is adequately capitalized or that the franchisor must rely on franchise fees to fund operations. The Commissioner has imposed a financial assurance condition and franchisor has elected to defer franchisee's payment of initial fees to franchisor until franchisor has satisfied all of its preopening obligations and franchisee has commenced doing business.
Therefore, the following paragraph is added to the end of Item 5 of the Disclosure Document:
Payment of all initial fees is postponed until after all of franchisor's initial obligations are complete and franchisee commences doing business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, information regarding the initial franchise fee can be found in various sections of the Franchise Agreement and its addenda, particularly in sections addressing state-specific requirements and fee waivers. For franchisees in certain states like California, Minnesota, South Dakota, and Washington, addenda modify the standard agreement, often deferring the payment of initial fees until pre-opening obligations are met and the franchisee commences business. These modifications are designed to comply with state franchise laws and may affect the timing of initial fee payments.
Specifically, the addenda for states like Washington stipulate that Focalpoint Coaching will not require or accept initial franchise fees until the franchisee has completed all pre-opening and initial training obligations and is open for business. Similarly, the California addendum notes that payment of all initial fees is postponed until after Focalpoint Coaching's initial obligations are complete and the franchisee begins operations. These provisions ensure that franchisees in these states receive the promised support and training before being required to pay the initial franchise fee.
Furthermore, the standard Franchise Agreement includes sections that detail the initial franchise fee and related conditions. For instance, in the event of a termination of the franchise agreement, Focalpoint Coaching may retain a portion of the initial franchise fee, with the remainder potentially refundable upon signing a general release. Additionally, the agreement outlines fees for additional training programs for associates, which are separate from the initial franchise fee. Therefore, prospective franchisees should review the Franchise Agreement and any state-specific addenda to fully understand the terms and conditions related to the initial franchise fee and associated obligations.