In Illinois, when will Focalpoint Coaching defer the franchisee's payment of initial fees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite the payment provisions above, we will defer your payment of initial fees owed by you to us under the Franchise Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under the Franchise Agreement. This requirement has been imposed by the Illinois Attorney General's Office based on our audited financial statements.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees in Illinois will have their initial franchise fees deferred. Specifically, Focalpoint Coaching will defer the payment of initial fees until all pre-opening obligations have been met and the franchisee has commenced business operations. This deferral is a requirement imposed by the Illinois Attorney General's Office, based on Focalpoint Coaching's audited financial statements.
This deferral of initial fees is beneficial for prospective Focalpoint Coaching franchisees in Illinois as it reduces the upfront financial burden. Instead of paying the fees immediately, franchisees can delay payment until they are ready to start their business. This can help with cash flow management during the initial setup phase.
It is important to note that this deferral only applies to the initial fees. Other fees or ongoing payments may still be required as outlined in the Franchise Agreement. Prospective franchisees should carefully review the Franchise Agreement to understand all payment obligations and conditions.
Additionally, the FDD specifies that Illinois law governs the Franchise Agreement and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may take place outside of Illinois. This ensures that Illinois franchisees have legal recourse within their own state.