What are the requirements for a Focalpoint Coaching franchisee regarding advertising and the development fund?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
ited annually, at the Fund's expense, by an independent certified public accountant. Franchisor may incorporate the Fund or operate it through a separate entity whenever Franchisor deems appropriate. The successor entity will have all of the rights and duties specified in this Subsection 9.A.
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.
B. BY FRANCHISEE.
Franchisee's local advertising and promotion must follow Franchisor's guidelines. All advertising and promotional materials that Franchisee develops for the Franchised Business must contain notices of Franchisor's Website's domain name in the manner Franchisor designates. Franchisee may not develop, maintain, or authorize any Website that mentions or describes Franchisee or the Franchised Business or displays any of the Marks without Franchisor's prior written approval. Franchisee agrees that any advertising, promotion, marketing and public relations Franchisee conducts will be completely clear, factual, and not misleading and conform to both the highest standards of ethical advertising and marketing and the advertising and marketing policies that Franchisor prescribes at any time and from time to time.
Before Franchisee uses them, Franchisee agrees to send Franchisor or Franchisor's designated agency for approval samples of all advertising, promotional, and marketing materials which Franchisor has not prepared or previously disapproved including, but not limited to, press releases and interviews for publication in any media. If Franchisee does not receive written disapproval within five (5) days after Franchisor or Franchisor's designated agency receives the materials, they are deemed to be approved. Franchisee may not use any advertising, promotional, or marketing materials that Franchisor has not approved or that Franchisor has disapproved.
10. RECORDS, REPORTS, AND FINANCIAL STATEMENTS.
Franchisee agrees to establish and maintain at Franchisee's own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements and formats Franchisor prescribes at any time and from time to time.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees are expected to make consistent marketing efforts in their communities through various methods, including media advertising, direct mail advertising, and the use of promotional materials.
Focalpoint Coaching has established an advertising fund (the Fund) intended to maximize recognition of their marks and patronage of Focalpoint Coaching Franchised Businesses. While Focalpoint Coaching aims to use the Fund to develop advertising and marketing materials and programs that benefit all franchisees, they are not obligated to ensure that Fund expenditures in any geographic area are proportionate to the contributions from franchisees operating in that area. This means that a franchisee's contribution to the fund does not guarantee a direct or proportional benefit from the advertising and marketing efforts.
Focalpoint Coaching retains significant control over the Fund, including the right to collect advertising, marketing, or similar allowances paid by suppliers. They also have the authority to designate a separate entity to administer the Fund and direct all programs financed by the Fund, with sole control over creative concepts, materials, endorsements, and their placement. Focalpoint Coaching may also provide franchisees with samples of advertising materials at no cost and sell additional copies at their direct cost of production, plus related charges.
Focalpoint Coaching also has the right to defer or reduce contributions from a franchisee, or even suspend or terminate the Fund altogether, with thirty days' notice. If the Fund is terminated, any unspent monies will be distributed to franchise owners, Focalpoint Coaching, and its affiliates in proportion to their respective contributions over the preceding twelve-month period. This structure gives Focalpoint Coaching considerable flexibility in managing the advertising fund and its resources.