What is the purpose of the Advertising and Development Fund for Focalpoint Coaching franchisees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor intends the Fund to maximize recognition of the Marks and patronage of FocalPoint Franchised Businesses. Although Franchisor will try to use the Fund to develop advertising and marketing materials and programs, and to place advertising and marketing, that will benefit all FocalPoint Franchised Businesses, Franchisor need not ensure that Fund expenditures in or affecting any geographic area are proportionate or equivalent to Fund contributions by FocalPoint Franchised Businesses operating in that geographic area or that any
FocalPoint Franchised Business benefits directly or in proportion to its Fund contribution from the development of advertising and marketing materials or the placement of advertising and marketing.
Franchisor has the right, but no obligation, to use collection agents and institute legal proceedings to collect Fund contributions at the Fund's expense. Franchisor also may forgive, waive, settle, and compromise all claims by or against the Fund. Except as expressly provided in this Subsection 9.A, Franchisor assumes no direct or indirect liability or obligation to Franchisee for collecting amounts due to, maintaining, directing, or administering the Fund.
Franchisor may at any time defer or reduce contributions of a FocalPoint Franchised Business franchise owner and, upon thirty (30) days' prior written notice to Franchisee, reduce or suspend Fund contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the Fund. If Franchisor terminates the Fund, Franchisor will distribute all unspent monies to Franchisor's franchise owners, and to Franchisor and Franchisor's affiliates, in proportion to their, and Franchisor's, respective Fund contributions during the preceding twelve (12) month period.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the purpose of the Advertising and Development Fund is to maximize recognition of the Focalpoint Coaching marks and increase patronage of Focalpoint Coaching franchised businesses. Focalpoint Coaching intends to use the fund to develop advertising and marketing materials and programs. They will also use the fund to place advertising and marketing to benefit all Focalpoint Coaching franchised businesses. However, Focalpoint Coaching does not have to ensure that fund expenditures in any geographic area are proportionate or equivalent to contributions from Focalpoint Coaching franchised businesses operating in that area. Nor does Focalpoint Coaching have to ensure that any Focalpoint Coaching franchised business benefits directly or in proportion to its fund contribution from the development of advertising and marketing materials or the placement of advertising and marketing.
Focalpoint Coaching has the right, but no obligation, to use collection agents and institute legal proceedings to collect fund contributions at the fund's expense. Focalpoint Coaching may also forgive, waive, settle, and compromise all claims by or against the fund. Except as expressly provided, Focalpoint Coaching assumes no direct or indirect liability or obligation to the franchisee for collecting amounts due to, maintaining, directing, or administering the fund.
Focalpoint Coaching can defer or reduce contributions of a Focalpoint Coaching franchised business franchise owner. They can also, with thirty days prior written notice to the franchisee, reduce or suspend fund contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the fund. If Focalpoint Coaching terminates the fund, they will distribute all unspent monies to Focalpoint Coaching's franchise owners, and to Focalpoint Coaching and Focalpoint Coaching's affiliates, in proportion to their, and Focalpoint Coaching's, respective fund contributions during the preceding twelve-month period.
In practical terms, this means that while franchisees contribute to the fund with the expectation of benefiting from increased brand awareness and customer traffic, Focalpoint Coaching has significant discretion in how the funds are used. There is no guarantee that a franchisee's contribution will directly benefit their specific location or region. Additionally, Focalpoint Coaching can modify or even terminate the fund with limited notice, potentially impacting the marketing support available to franchisees.