Does the office lease for Focalpoint Coaching contain an option that the company is reasonably certain to exercise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------|-------------------------| | 2027 | 2,691 | | 2028 | 2,691 | | 2029 | 2,691 | | Thereafter | 24,224 $ 37,679 |
Note 4. Leases
The Company has one (1) lease arrangement under which it is the lessee. The Company leases an office on a month-to-month basis requiring fixed monthly rental amounts.
The Company elected the short-term lease practical expedient (a lease that at commencement date has a lease term of twelve (12) months or less and does not contain an option that the lease is reasonably certain to exercise) related to the lease of its office space.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the company leases an office on a month-to-month basis. The lease requires fixed monthly rental amounts.
The document states that Focalpoint Coaching elected the short-term lease practical expedient related to the lease of its office space. This means the lease has a term of twelve months or less and does not contain an option that the company is reasonably certain to exercise.
For the years ending December 31, 2024, and 2023, Focalpoint Coaching recognized short-term operating lease expenses totaling $1,500 and $1,500, respectively. This indicates a consistent, relatively low cost for the office lease, reflecting the short-term nature of the agreement.