What was the total amount of royalty fees collected by Focalpoint Coaching 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 royalty fees collected in 2024 amounted to $2,749,313. This figure represents 36.04% of Focalpoint Coaching's total revenues for that year. In comparison, royalty fees collected in 2023 totaled $2,379,667, which was 38.88% of total revenues.
For a prospective Focalpoint Coaching franchisee, understanding the royalty fee structure is crucial. Royalty fees are typically a percentage of a franchisee's gross sales and are paid to the franchisor on a regular basis (often monthly). These fees provide ongoing support, training, and the continued use of the Focalpoint Coaching brand's trademarks, systems, and expertise.
The fact that royalty fees constitute a significant portion of Focalpoint Coaching's revenue highlights the importance of this income stream to the franchisor's financial health. It also suggests that a substantial part of the value proposition for franchisees lies in the ongoing services and brand support provided by Focalpoint Coaching.
Prospective franchisees should carefully evaluate the royalty fee structure, understand how it might impact their profitability, and assess the value they receive in return for these fees. They should also consider how changes in their revenue might affect the percentage they pay in royalties and factor this into their financial projections.