What was the total amount spent on franchise broker commissions by Focalpoint Coaching in the previous year?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
0,494 | 10.23 | | 199,713 | 3.27 | | | | $ 7,629,158 | 100.00% | $ | 6,121,239 | 100.00% | |
COST OF REVENUES Years Ended December 31, 2024 and 2023
| Commission | $ 356,500 | 4.67% | $ | 318,244 | 5.20% | |
|---|---|---|---|---|---|---|
| Franchise broker commission | 939,000 | 12.31 | 849,500 | 13.88 | ||
| Franchise fee disbursement | 484,211 | 6.35 | 307,424 | 5.02 | ||
| Referral fee | 15,000 | .20 | 64,000 | 1.05 | ||
| Regional fee disbursement | 127,617 | 1.67 | 81,623 | 1.33 | ||
| Royalty fee disbursement | 1, |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the company spent $939,000 on franchise broker commissions in 2023. This figure represents 12.31% of a larger category of expenses. In 2022, Focalpoint Coaching spent $849,500 on franchise broker commissions, which represented 13.88% of expenses.
Franchise broker commissions are fees paid to individuals or firms that help Focalpoint Coaching find and recruit new franchisees. These brokers act as intermediaries, connecting potential franchisees with the Focalpoint Coaching franchise opportunity. The amount spent on these commissions can fluctuate from year to year based on Focalpoint Coaching's growth strategy and the number of new franchises awarded.
For a prospective Focalpoint Coaching franchisee, understanding the franchisor's use of franchise brokers is important. It indicates that Focalpoint Coaching is actively seeking new franchisees and is willing to invest in recruitment efforts. However, it's also wise to inquire about the effectiveness of these brokers and the overall franchisee recruitment strategy during due diligence. Understanding how Focalpoint Coaching attracts and selects its franchisees can provide insights into the quality and support new franchisees might expect.
It is important to note that the initial franchise fees paid by new franchisees are used, in part, to cover these broker fees, as well as the costs of training. This means that a portion of the initial investment made by a franchisee goes towards covering the expenses associated with franchise development and recruitment.