What is the insufficient funds processing fee charged by Focalpoint Coaching?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
e_0.jpeg)
Item 6
OTHER FEES
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Submit Required Reports | $75 | As incurred | If you fail to send us the reports required by the Franchise Agreement, we may debit your account this amount on the 5th day of the month following your failure to submit the require reports. |
| Costs and | Will vary under | As incurred | Due when you do not comply with the |
| Attorneys’ Fees | circumstances | Franchise Agreement. | |
| Brand Damages | Will vary under circumstances | As incurred | Due only if you terminate the Franchise Agreement before it expires, in which case you must pay us for all Brand Damages related to the early termination. See Note 6. |
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us for claims from your Franchised Business’ operation. |
Source: Item 6 — Other Fees (FDD pages 14–20)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees will be charged an insufficient funds processing fee of $100. This fee is incurred if a franchisee has insufficient funds in their Electronic Depository Transfer Account (EDTA) to cover a payment, or if a check is returned due to insufficient funds. The fee is due as incurred, meaning it will be charged each time an incident of insufficient funds occurs.
Franchisees are required to authorize Focalpoint Coaching to automatically debit their business checking account for royalties, fund contributions, and other amounts due under the Franchise Agreement. This automatic debit system, known as the EDTA, requires franchisees to maintain sufficient funds to cover these payments. The insufficient funds fee is in place to address instances where these automatic debits fail due to a lack of funds.
This fee is relatively standard in franchising, as franchisors need to have mechanisms in place to cover the administrative costs and potential disruptions caused by failed payments. Franchisees should ensure they manage their accounts carefully to avoid incurring this fee, as it can add up if insufficient funds incidents occur frequently. Maintaining adequate funds in the EDTA and ensuring checks are valid are key to avoiding this charge from Focalpoint Coaching.