What was the total amount of royalty fees collected by Focalpoint Coaching in 2022?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Representative - A monthly royalty fee is charged and recognized as revenue from Franchisees for the use of the Franchisor's business formats, methods, procedures, signs, designs, layouts, standards, specifications and marks (the "Franchise System"). The length of the franchise term is ten years. If the Franchisee chooses to discontinue with the franchise prior to the ten year term, an early termination fee is charged and due immediately upon separation.
Unit Franchise - A monthly royalty fee is charged and recognized as revenue from Franchisees for the use of the Franchisor's business formats, methods, procedures, signs, designs, layouts, standards, specifications and marks (the "Franchise System"). The amount of the royalty will be increased for each associate hired or retained from time to time by Franchisee. The length of the franchise term is seven years. If the Franchisee chooses to discontinue with the franchise prior to the seven year term, an early termination fee is charged and due immediately upon separation.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Focalpoint Coaching Franchise Disclosure Document, the exact total amount of royalty fees collected by Focalpoint Coaching in 2022 is not explicitly stated. However, the FDD does include audited financial statements for the years ending December 31, 2023, and December 31, 2022. These statements include details on net revenues. Royalty fees are mentioned as a revenue source, with different structures for area representatives and unit franchisees.
For both area representatives and unit franchisees, Focalpoint Coaching charges a monthly royalty fee for the use of their business formats, methods, procedures, signs, designs, layouts, standards, specifications, and marks. For unit franchisees, the royalty amount increases with each associate they hire or retain. Additionally, both types of franchisees pay a monthly advertising fund fee, with 85% of the total amount going to the fund and 15% covering Focalpoint Coaching's administration and marketing costs.
To determine the specific amount of royalty fees collected in 2022, a prospective franchisee should carefully review the audited financial statements within the FDD and consider consulting with a financial advisor. Further clarification can be sought from Focalpoint Coaching regarding the breakdown of revenue sources and the total royalty fees collected during that period.