How is the transfer fee for a Focalpoint Coaching franchise calculated?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
hise agreement will terminate this Agreement (except for Franchisee's guarantees, the post-termination obligations under this Agreement, and all other rights and obligations that survive termination or expiration of this Agreement), and the term of the new franchise agreement signed will equal seven (7) years;
- (7) Franchisee or the transferee pays Franchisor a transfer fee equal to the greater of: (i) fifteen percent (15%) of the sales price of the Franchised Business and (ii) Twenty Thousand Dollars ($20,000);
- (8) Franchisee (and Franchisee's transferring owners) sign Franchisor's thencurrent form of general release of any and all claims against Franchisor and Franchisor's shareholders, officers, directors, members, employees, and agents;
- (9) Franchisor has determined that the purchase price and payment terms will not adversely affect the transferee's operation of the Franchised Business;
- (10) if Franchisee or Franchisee's owners finance any part of the purchase price, Franchisee and/or Franchisee's owners agree that all of the transferee's obligations under promissory notes, agreements, or security interests reserved in the Franchised Business are subordinate to the transferee's obligation to pay Royalties, Fund contributions, and other amounts due to Franchisor, Franchisor's affiliates, and third party vendors and otherwise to comply with this Agreement;
- (11) (a) Franchisee has corrected any existing deficiencies of the Franchised Business (including with respect to the vehicles used by the Franchised Business) of which Franchisor has notified Franchisee on a punchlist or in other communications and/or (b) if the Office is in a non-residential location, the transferee agrees (regardless of cost) to remodel and/or expand the Office, add or replace Services, vehicles used by the Franchised Business, Operating Assets and/or Proprietary Products, and otherwise modify the Franchised Business in accordance with Franchisor's then current requirements and specifications for FocalPoint Franchised Businesses within the time period Franchisor specifies following the effective date of the transfer (Franchisor will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the transfer fee is calculated as the greater of two amounts. Specifically, it is either fifteen percent (15%) of the sales price of the franchise business or Twenty Thousand Dollars ($20,000), whichever is higher.
This means that if a franchisee sells their Focalpoint Coaching franchise for $100,000, the transfer fee would be $20,000 (since 15% of $100,000 is $15,000, and $20,000 is greater). However, if the franchise is sold for $200,000, the transfer fee would be $30,000 (15% of $200,000).
In addition to paying the transfer fee, the franchisee must also meet other obligations to complete the transfer. These obligations include signing a general release of claims against Focalpoint Coaching, ensuring that the purchase price and payment terms do not adversely affect the transferee's operation of the franchise, correcting any existing deficiencies in the franchised business, and agreeing not to engage in similar activities for two years after the transfer.