How does the number of associates employed by a Focalpoint Coaching franchisee affect the monthly royalty fee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
er the Associate completes the training program for Associates to Franchisor's satisfaction. On or before the first day of each month during the term of this Agreement, Franchisee agrees to send Franchisor the Royalty due for that month.
| 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 fo |
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the monthly royalty fee increases as a franchisee hires or retains more associates. The specific royalty amount depends on the number of associates and the time period since the franchise's effective date.
For example, during months 1 through 4 immediately following the effective date, the royalty fee is $500 per month with no associates. If the franchisee has one associate, the royalty increases to $900 per month. With two associates, it's $1,300 per month, and with three associates, it rises to $1,700 per month. These amounts change in months 5-8, 9-12, and from month 13 onward.
After month 13, the base royalty fee is $1,950. With one associate, the royalty is $3,150; with two, it's $4,350; and with three, it's $5,500 per month. The FDD specifies that an associate is considered hired or retained on the first day of the month after they complete the training program to Focalpoint Coaching's satisfaction. This escalating royalty structure incentivizes franchisees to carefully consider the financial implications of hiring additional staff, as it directly impacts their monthly expenses.