When is the initial fee due for both Area Representatives and Unit Franchisees of Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
nition policies for each of their major revenue components. They are classified as either an area representative or a unit franchise.
Franchise fees
Area Representative - The initial fee for an individual or company to become an area representative within the franchised territory for the development, management, servicing, and supervision of FocalPoint Franchised Business with the Franchised territory. The fee is due and recognized as revenue upon execution of the contract and completion of training. These fees are used to cover costs incurred by the Company for the initial setup of the Franchisee, which include broker fees and training.
Unit Franchise - The initial fee for an individual or company to become a franchise to own and operate a FocalPoint Franchised Business offering the proprietary products and services Franchisor authorizes and using Franchisor's business formats, methods, procedures, signs, designs, layouts, standards, specifications and marks (the "Franchise System"). The fee is due and recognized as revenue upon execution of the contract and completion of training. These fees are used to cover costs incurred by the Company for the initial setup of the Franchisee, which include broker fees and training.
Note 1.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching FDD, the initial franchise fee due dates differ slightly between Area Representatives and Unit Franchisees. For both, the fees are linked to specific milestones in the franchise onboarding process. Understanding these payment terms is crucial for prospective franchisees to manage their initial investment.
For Area Representatives, the initial fee is due upon the execution of the franchise contract. However, the fee is only recognized as revenue by Focalpoint Coaching after the completion of the franchisee's training. This means that while payment is required upfront, Focalpoint Coaching accounts for it internally only after the training phase is successfully completed.
For Unit Franchisees, the initial fee is also due upon the execution of the franchise contract. Similar to Area Representatives, Focalpoint Coaching recognizes this fee as revenue only after the franchisee completes their training. This parallel structure ensures that Focalpoint Coaching only recognizes the revenue after providing the initial training and setup support to both types of franchisees.
Additionally, both Area Representatives and Unit Franchisees are required to pay a one-time training fee upon execution of the franchise agreement. This fee is recognized as revenue by Focalpoint Coaching upon completion of the training program. This indicates that training is a critical component of the franchise agreement, and the associated fees are structured to align with the delivery of that training.