What is the par value of Focalpoint Coaching's treasury stock?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| STOCKHOLDERS' DEFICIT | |||||||
|---|---|---|---|---|---|---|---|
| Common stock, | $.001 | par value; | authorized | ||||
| 67,260 shares; issued and outstanding | $ | 100 | $ | 100 | |||
| Treasury stock, | $.001 | par value; | $10 | cost; | |||
| 32,743 outstanding | (10) | (10) | |||||
| Retained deficit | (237,280) $(237,190) $822,940 | (249,741) $(249,651) $641,697 |
Source: Item 23 — Receipts (FDD pages 57–259)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the par value of the company's treasury stock is $0.001 per share. The FDD also indicates that Focalpoint Coaching has 32,743 outstanding shares of treasury stock, which were acquired at a cost of $10.
In simpler terms, par value is the nominal value assigned to a company's stock when it is first issued. It is typically a very small amount, as seen here with Focalpoint Coaching. The cost of $10 represents what Focalpoint Coaching paid to reacquire its own shares.
For a potential Focalpoint Coaching franchisee, this information provides insight into the company's capitalization and equity structure. While the par value itself is not a significant financial metric, the presence of treasury stock indicates that the company has repurchased its own shares, which can be done for various reasons, such as to reduce the number of outstanding shares or to have shares available for employee compensation plans.