What sections of the Focalpoint Coaching Franchise Agreement are affected by the Initial Fees clause in the Rider for Focalpoint Coaching?

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the Initial Fees clause in the Rider affects Sections 3.A and 4.A of the Franchise Agreement. Specifically, the Rider adds language to the end of these sections to address the payment of initial franchise fees. This modification is included in addenda for franchisees in Illinois, South Dakota, North Dakota, and Virginia.

For franchisees in these states, the standard payment provisions outlined in Sections 3.A and 4.A are superseded by the Rider. The Rider stipulates that Focalpoint Coaching will defer the payment of initial fees until all pre-opening obligations have been met and the franchisee has commenced business operations. This means a new Focalpoint Coaching franchisee will not be required to pay the initial franchise fee until after they have completed their training and are ready to open their business.

In Washington state, the Rider modifies Sections 3.A and 4.A of the Franchise Agreement, stating that Focalpoint Coaching will not require or accept payment of any initial franchise fees until the franchisee has received all pre-opening and initial training and is open for business. This ensures that franchisees in Washington receive the training and support they are entitled to before paying the initial franchise fee.

In California, due to concerns about Focalpoint Coaching's capitalization, the payment of all initial fees is postponed until after all of Focalpoint Coaching's initial obligations are complete and the franchisee commences doing business. This condition is imposed to provide financial assurance to the franchisee, ensuring that Focalpoint Coaching fulfills its pre-opening responsibilities before receiving the initial franchise fee.