What is the reported retained deficit for Focalpoint Coaching?
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 company had a retained deficit of $(237,280) $(237,190) $822,940 for 2024 and $(249,741) $(249,651) $641,697 for 2023.
A retained deficit, also known as accumulated deficit, occurs when a company's accumulated losses exceed its accumulated profits. This is a financial metric that can provide insight into a company's past profitability and financial health. For a prospective franchisee, a retained deficit may signal potential financial instability or challenges within the company.
It is important to note that a retained deficit does not necessarily mean that Focalpoint Coaching is not a viable franchise opportunity. However, prospective franchisees should carefully consider this information and conduct thorough due diligence to assess the company's current financial situation, future prospects, and the potential risks and rewards of investing in a Focalpoint Coaching franchise. Consulting with a financial advisor is recommended to fully understand the implications of the retained deficit and its potential impact on the franchisee's investment.