Where in the Focalpoint Coaching Franchise Agreement can I find information about Late Fees and Interest?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
K. LATE FEES AND INTEREST.
If Franchisee is late in any payment under this Agreement, Franchisee shall pay Franchisor an amount equal to eighteen percent (18%) of the amount owed as an administrative fee to compensate Franchisor for its increased costs and expenses. In addition, all amounts which Franchisee owes Franchisor for any reason, will bear interest accruing as of their original due date at one and one half percent (1.5%) per month or the highest commercial contract interest rate the law allows, whichever is less. Franchisor may debit Franchisee's bank account automatically for late fees and interest. Franchisee acknowledges that this Subsection 3.K is not Franchisor's agreement to accept any payments after they are due or Franchisor's commitment to extend credit to, or otherwise finance Franchisee's operation of, the Franchised Business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, details regarding late fees and interest can be found in Section 3.K of the Franchise Agreement. This section stipulates that if a franchisee is late on any payment, Focalpoint Coaching will charge an administrative fee of 18% of the amount owed to cover increased costs and expenses.
Furthermore, all outstanding amounts owed to Focalpoint Coaching will accrue interest from the original due date. The interest rate is set at 1.5% per month, which is equivalent to 18% annually, or the highest commercial contract interest rate permitted by law, whichever is less. Focalpoint Coaching retains the right to automatically debit the franchisee's bank account for these late fees and interest charges.
The Franchise Agreement clarifies that Subsection 3.K does not obligate Focalpoint Coaching to accept late payments or extend credit to finance the franchisee's business operations. This provision ensures that Focalpoint Coaching is compensated for the additional administrative burdens and financial costs associated with late payments, while also protecting their right to enforce timely payments under the agreement.