When is the initial Unit Franchise fee due for a Focalpoint Coaching franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the initial unit franchise fee is due upon two conditions. The fee is due when the franchise agreement is executed and upon completion of the initial training program. Focalpoint Coaching recognizes this fee as revenue at this time. These fees are used by Focalpoint Coaching to cover costs associated with the initial setup of the franchisee, including broker fees and training expenses.
This means that a prospective Focalpoint Coaching franchisee must be prepared to pay the initial franchise fee when signing the franchise agreement and after completing the training. This is a fairly standard practice in the franchise industry, as it ensures that the franchisor has the capital to provide the necessary support and training to the new franchisee.
Furthermore, the FDD states that there is also a one-time marketing fee and a non-refundable regional setup fee that are both due upon execution of the contract. Therefore, a prospective franchisee should be aware of all the fees due upon signing the franchise agreement.