What is the franchisee's obligation regarding contributions to the Focalpoint Coaching Advertising and Development Fund?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| Time Period During the Term of this Agreement | Royalty Amount (per month) | Royalty Amount if Franchisee has One Associate (per month) | Royalty Amount if Franchisee has Two Associates (per month) | Royalty Amount if Franchisee has Three Associates (per month) |
|---|---|---|---|---|
| Months 1 through 4 | $500 | $900 | $1,300 | $1,700 |
| immediately following | ||||
| the Effective Date | ||||
| Months 5 through 8 | $1,000 | $1,800 | $2,600 | $3,400 |
| immediately following | ||||
| the Effective Date | ||||
| Months 9 through 12 | $1,500 | $2,700 | $3,900 | $5,100 |
| immediately following | ||||
| the Effective Date | ||||
| Month 13 immediately | $1,950 | $3,150 | $4,350 | $5,500 |
| following the Effective | ||||
| Date and for the | ||||
| remainder of the term | ||||
| of this Agreement |
I. ADVERTISING AND DEVELOPMENT FUND CONTRIBUTIONS.
Franchisee agrees to contribute to the Fund (as defined in Subsection 9.A below) in the amounts that Franchisor prescribes at any time and from time to time, not to exceed One Hundred and Fifty Dollars ($150) per month, plus an additional One Hundred and Fifty Dollars ($150) per month for each Associate Franchis
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, franchisees are required to contribute to the Advertising and Development Fund. The amount is determined by Focalpoint Coaching, but it cannot exceed $150 per month. Additionally, franchisees must pay an extra $150 per month for each associate they retain or hire. These payments are due by the 15th of each month and are non-refundable.
The purpose of the Advertising and Development Fund is to enhance the recognition of Focalpoint Coaching's brand and to support its franchised businesses. While Focalpoint Coaching aims to use the fund to create advertising and marketing materials that benefit all franchisees, there is no guarantee that the expenditure in any specific area will be proportional to the contributions from franchisees in that area. Similarly, there's no assurance that a franchisee will directly benefit from the fund in proportion to their contribution.
Focalpoint Coaching retains the right to collect advertising, marketing, or similar allowances from suppliers who deal with Focalpoint Coaching franchisees and deposit them into the fund. Focalpoint Coaching also has the authority to designate a separate entity to manage the fund. The company has sole control over the creative aspects, materials, endorsements, and the placement and allocation of advertising. The fund may be used for various activities, including producing video, audio, and written materials, maintaining a website, administering marketing programs, purchasing media advertising, and supporting public relations and market research.
Focalpoint Coaching may provide franchisees with samples of advertising and marketing materials at no cost and sell additional copies at their direct production cost, plus any shipping, handling, and storage charges. Focalpoint Coaching also has the option to defer or reduce contributions from a franchisee, or even suspend the fund altogether, with 30 days' notice. If the fund is terminated, any remaining money will be distributed to the franchise owners, Focalpoint Coaching, and its affiliates in proportion to their contributions over the previous 12 months.