Can Focalpoint Coaching require franchisees to have audited financial statements prepared annually?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
red by law) disclose Franchisee's identity in any materials that Franchisor circulates publicly. Moreover, Franchisor may, as often as Franchisor deems appropriate (including on a daily basis), access the Computer System and retrieve all information relating to the Franchised Business' operation.
Franchisee agrees to preserve and maintain all records in a secure location at the Office for at least seven (7) years (including, but not limited to, sales checks, purchase orders, invoices, payroll records, client lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers). Franchisor may require Franchisee to have audited financial statements prepared annually during this Agreement's term.
If Fr
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching may require franchisees to have audited financial statements prepared annually during the term of the Franchise Agreement.
In addition to potentially requiring audited financial statements, Focalpoint Coaching also requires franchisees to submit other financial reports. Franchisees must submit a report on the Franchised Business' Gross Sales each month, operating statements and financial statements each calendar quarter, and annual profit and loss statements. Franchisees must also provide copies of federal and state income tax returns, sales tax returns, and any other forms or records Focalpoint Coaching requests.
Franchisees are obligated to maintain all records in a secure location at the Office for at least seven years, including sales checks, purchase orders, invoices, payroll records, client lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers. If a franchisee fails to submit any reports as required, Focalpoint Coaching may charge a fee of $75 to compensate for additional administrative expenses. Focalpoint Coaching may increase this fee with prior written notice.