What is the franchisee obligated to do regarding funds in the EDTA for Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
tes owe Franchisee or Franchisee's owners. Franchisee may not withhold payment of any amounts Franchisee owes Franchisor due to Franchisor's alleged nonperformance of any of Franchisor's obligations under this Agreement.
M. METHOD OF PAYMENT.
Before the Franchised Business begins operating, Franchisee agrees to sign and deliver to Franchisor the documents Franchisor requires to authorize Franchisor to debit Franchisee's
business checking account automatically for the Royalty, Technology Fee, Conference Registration Fee, Fund contributions (defined below), and other amounts due under this Agreement and for Franchisee's purchases from Franchisor and/or Franchisor's affiliates (the "Electronic Depository Transfer Account" or "EDTA"). Franchisor will debit the EDTA for these amounts on their due dates. Franchisee agrees to ensure that funds are available in the EDTA to cover Franchisor's withdrawals. If there are insufficient funds in the EDTA to cover any such amount owed (or, if Franchisee is paying by check and a check is returned for insufficient funds), Franchisor will charge Franchisee a processing fee of One Hundred Dollars ($100) to compensate Franchisor for Franchisor's additional administrative expenses. If there are insufficient funds in the EDTA, or if Franchisee's check is returned for insufficient funds, then Franchisor may require Franchisee to make all subsequent payments to Franchisor by certified check.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee is required to sign and deliver documents that authorize Focalpoint Coaching to automatically debit the franchisee's business checking account, also known as the Electronic Depository Transfer Account (EDTA). This account will be used for royalty fees, technology fees, conference registration fees, marketing fund contributions, and other amounts due under the Franchise Agreement, as well as for purchases from Focalpoint Coaching or its affiliates.
The franchisee is obligated to ensure that sufficient funds are available in the EDTA to cover these withdrawals on their due dates. If there are insufficient funds, Focalpoint Coaching will charge the franchisee a processing fee of $100 to cover additional administrative expenses.
If a franchisee's check is returned due to insufficient funds, Focalpoint Coaching may require the franchisee to make all subsequent payments via certified check. Focalpoint Coaching also retains the right to require payments through other means, such as a standard check, whenever they deem it appropriate, and the franchisee must comply with these payment instructions.