Is the royalty fee waived for Focalpoint Coaching franchisees under certain conditions?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
ch are hereby acknowledged, the parties agree as follows:
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- Recitations. The foregoing recitations of fact are true and correct and are incorporated herein by this reference. All initial capitalized terms used but not defined in this Addendum shall have the meanings set forth in the Franchise Agreement. This Addendum is annexed to and forms part of the Franchise Agreement. All references in this Addendum to "Section" shall mean the applicable Section of the Franchise Agreement. Except as provided in this Addendum, the Franchise Agreement remains in full force and effect as originally written. If there is a conflict between the terms of the Franchise Agreement and the terms of this Addendum, the terms of this Addendum shall control.
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- Waiver of Certain Fees under the Franchise Agreement. Notwithstanding anything to the contrary in the Franchise Agreement, during such time as the Area Representative Agreement remains in effect, Franchisee shall not be required to pay the following fees payable under the Franchise Agreement: Section 3.A (the initial franchise fee); Section 3.B (Royalty), Section 3.D (Technology Fee); Section 3.E (Regional Setup Fee); Section 3.F (Conference Registration Fee); Section 3.G (Initial Marketing Fee);
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, under specific conditions, franchisees may not be required to pay certain fees, including royalties. Specifically, if a franchisee also enters into an Area Representative Agreement with Focalpoint Coaching, they are temporarily relieved of the obligation to pay several fees outlined in the Franchise Agreement.
The fees waived during the time the Area Representative Agreement is active include Section 3.A (the initial franchise fee), Section 3.B (Royalty), Section 3.D (Technology Fee), Section 3.E (Regional Setup Fee), Section 3.F (Conference Registration Fee), Section 3.G (Initial Marketing Fee), and Section 9.A (contributions to the Fund). However, this waiver does not extend to fees applicable for each Associate hired or retained by the Area Representative; those fees must still be paid as required under the Franchise Agreement.
It's important to note that this waiver is temporary. Should the Area Representative Agreement terminate or expire during the term of the Franchise Agreement, the franchisee must immediately resume paying all previously waived fees, including Royalties, Technology Fees, Conference Registration Fees, and Fund contributions, according to the original terms of the Franchise Agreement. This condition provides an incentive for franchisees to potentially expand their role within the Focalpoint Coaching system, but also carries the risk of increased financial obligations if the Area Representative Agreement ends.