How much additional must a Focalpoint Coaching franchisee contribute to the Advertising and Development Fund for each Associate Franchisee they retain or hire?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| Time Period During the Term of this Agreement | Royalty Amount (per month) | Royalty Amount if Franchisee has One Associate (per month) | Royalty Amount if Franchisee has Two Associates (per month) | Royalty Amount if Franchisee has Three Associates (per month) |
|---|---|---|---|---|
| Months 1 through 4 | $500 | $900 | $1,300 | $1,700 |
| immediately following | ||||
| the Effective Date | ||||
| Months 5 through 8 | $1,000 | $1,800 | $2,600 | $3,400 |
| immediately following | ||||
| the Effective Date | ||||
| Months 9 through 12 | $1,500 | $2,700 | $3,900 | $5,100 |
| immediately following | ||||
| the Effective Date | ||||
| Month 13 immediately | $1,950 | $3,150 | $4,350 | $5,500 |
| following the Effective | ||||
| Date and for the | ||||
| remainder of the term | ||||
| of this Agreement |
I. ADVERTISING AND DEVELOPMENT FUND CONTRIBUTIONS.
Franchisee agrees to contribute to the Fund (as defined in Subsection 9.A below) in the amounts that Franchisor prescribes at any time and from time to time, not to exceed One Hundred and Fifty Dollars ($150) per month, plus an additional One Hundred and Fifty Dollars ($150) per month for each Associate Franchis
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee must contribute to the Advertising and Development Fund. The amount cannot exceed $150 per month. In addition to this, the franchisee must pay an additional $150 per month for each Associate Franchisee they retain or hire. These payments are due on or before the 15th of each month and are not refundable.
The purpose of the Advertising and Development Fund is to maximize recognition of the Focalpoint Coaching brand and support its franchisees. While Focalpoint Coaching aims to use the fund to develop advertising and marketing materials that benefit all franchisees, there is no guarantee that the expenditures in any specific geographic area will be proportionate to the contributions from franchisees operating in that area. Similarly, there's no assurance that any individual Focalpoint Coaching franchise will directly benefit from the fund in proportion to their contribution.
Focalpoint Coaching retains the right to use collection agents or legal proceedings to collect fund contributions, and it may also forgive, waive, settle, or compromise claims related to the fund. However, Focalpoint Coaching assumes no direct liability to the franchisee for collecting, maintaining, directing, or administering the fund, except as expressly provided in the agreement. Furthermore, Focalpoint Coaching can defer or reduce contributions from a franchisee and, with 30 days' notice, reduce or suspend fund contributions and operations, or even terminate the fund. If the fund is terminated, any unspent monies will be distributed to Focalpoint Coaching's franchisees, as well as to Focalpoint Coaching and its affiliates, in proportion to their respective contributions over the preceding 12-month period.