What initial fees does Focalpoint Coaching defer under the Rider?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Initial Fees. The following language is added to the end of Sections 3.A and 4.A of the Franchise Agreement:
Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the Rider defers initial fees under specific conditions for franchisees in certain states. For franchisees in Virginia, Illinois, South Dakota, North Dakota, and Minnesota, Focalpoint Coaching will defer payment of initial fees until all pre-opening obligations are met and the franchisee commences business operations. In Illinois, this requirement is imposed by the Illinois Attorney General's Office based on Focalpoint Coaching's audited financial statements.
For franchisees operating in Washington, Focalpoint Coaching will not require or accept any initial franchise fees until the franchisee has received all pre-opening and initial training obligations and is open for business. This differs slightly from the other states, as it explicitly states that Focalpoint Coaching will not accept payment, rather than deferring it.
In California, payment of all initial fees is postponed until after all of Focalpoint Coaching's initial obligations are complete and the franchisee commences doing business. This deferral is due to the Department determining that Focalpoint Coaching has not demonstrated it is adequately capitalized or that Focalpoint Coaching must rely on franchise fees to fund operations, leading to a financial assurance condition imposed by the Commissioner.