What was the total amount of revenue Focalpoint Coaching received from franchise fees in 2024?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Wightman & Company, CPAs, LLC
Las Vegas, Nevada
February 26, 2025
NET REVENUES Years Ended December 31, 2024 and 2023
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| Amount | Percent to Revenues | Amount | Percent to Revenues | |||
| Conference fee | $ 220,787 | 2.89% | $ | 174,681 | 2.85% | |
| Franchise fee | 2,367,359 | 31.03 | 2,181,700 | 35.64 | ||
| Marketing fee | 174,050 | 2.28 | 144,550 | 2.36 | ||
| Marketing fund | 48,645 | .64 | 42,428 | .69 | ||
| Royalty fee | 2,749,313 | 36.04 | 2,379,667 | 38.88 | ||
| Technology fee | 189,194 | 2.48 | 137,550 | 2.25 | ||
| Training |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the total revenue received from franchise fees in 2024 was $2,367,359, representing 31.03% of total revenues. In the previous year, 2023, franchise fees amounted to $2,181,700, which was 35.64% of total revenues. This indicates an increase in the absolute dollar amount of franchise fees from 2023 to 2024, but a decrease in the percentage of total revenue derived from these fees.
For a prospective Focalpoint Coaching franchisee, this information is relevant for understanding the revenue streams of the franchisor. Franchise fees are typically one-time initial fees paid by franchisees to the franchisor for the right to operate under the brand. The increase in franchise fee revenue suggests that Focalpoint Coaching may have expanded its franchise network in 2024 compared to 2023.
However, the decrease in the percentage of revenue from franchise fees, alongside increases in other revenue streams like royalty fees, suggests a shift in Focalpoint Coaching's revenue model. Royalty fees, for example, made up 36.04% of revenue in 2024 ($2,749,313) compared to 38.88% in 2023 ($2,379,667). This could mean Focalpoint Coaching is becoming more reliant on ongoing royalties from its existing franchisees than on initial fees from new franchisees. This trend could be seen as positive, indicating a healthy and growing franchise system with increasing revenues from established locations.
Prospective franchisees should consider these trends when evaluating the long-term financial stability and revenue model of Focalpoint Coaching. Understanding the different revenue streams and their relative importance can provide insights into the franchisor's priorities and how they support their franchisees.