Under what circumstances must a Focalpoint Coaching franchisee reimburse the franchisor for taxes?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
on the Territory specific to Franchisee's Franchised Business. This fee is due, and fully earned by Franchisor, when Franchisee signs this Agreement and is not refundable under any circumstances.
F. CONFERENCE REGISTRATION FEE.
Upon execution of this Agreement, Franchisee shall pay Franchisor a non-refundable conference registration fee (the "Conference Registration Fee") of Two Thousand Two Hundred Fifty Dollars ($2,250), plus any applicable taxes. This fee is due, and fully earned by Franchisor, when Franchisee signs this Agreement and is not refundable under any circumstances. In addition, Franchisee agrees to pay Franchisor an annual Conference Registration Fee for Franchisor's costs associated with the annual national and/or regional conferences for FocalPoint Franchised Business franchise owners, not to exceed Three Thousand Five Hundred Dollars ($3,500) per person, plus any applicable taxes. Franchisee agrees to pay Franchisor an additional Conference Registration Fee for each Associate that attends any national and/or regional conferences for FocalPoint Franchised Business franchise owners. From Month 13 immediately following the Effective Date through the remainder of the term of this Agreement, Franchisee must pay the entire Conference Registration Fee each year either in a lump sum at least sixty (60) days prior to attending the annual conference or a prorated monthly amount of the Conference Registration Fee on the fifteenth (15th) day of each month, which Franchisor determines each year in Franchisor's sole discretion and notifies Franchisee of the required payment timing in electronic communication Franchisor sends annually. Failure to attend the annual national and/or any regional conference does not waive Franchisee's obligation to pay the Conference Registration Fee or any other fees due and payable for regional conferences.
G. CRM SETUP FEE.
Upon execution of this Agreement, Franchisee shall pay Franchisor a non-refundable customer relationship management ("CRM") setup fee of One Thousand Dollars ($1,000), plus any applicable taxes, (the "CRM Setup Fee") which will be used to support Franchisor's initial setup procedures for the customer relationship management system. Franchisee must pay Franchisor an additional CRM Setup Fee for each Associate Franchisee retains or hires. This fee is due, and fully earned by Franchisor, when Franchisee signs this Agreement or Franchisee retains or hires an Associate, whichever is applicable, and is not refundable under any circumstances.
H. CONTINUING SERVICE AND ROYALTY FEE.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee must reimburse Focalpoint Coaching for taxes under specific circumstances related to fees. Upon signing the franchise agreement, the franchisee is required to pay a non-refundable conference registration fee of $2,250, along with any applicable taxes. Additionally, the franchisee must pay a non-refundable CRM setup fee of $1,000, plus any applicable taxes.
Furthermore, Focalpoint Coaching franchisees are obligated to pay an annual conference registration fee for the franchisor's costs related to national and/or regional conferences, which cannot exceed $3,500 per person, in addition to any applicable taxes. This annual fee must be paid either in a lump sum at least 60 days before the conference or through prorated monthly payments. Franchisees also agree to pay the then current fee (plus any applicable taxes) for the training program for Associates within five (5) days after Franchisee hires or retains an Associate.
In summary, a Focalpoint Coaching franchisee is responsible for covering any applicable taxes on the initial conference registration fee, the CRM setup fee, the annual conference registration fee, and the training program fee for Associates. This means that the total initial investment and ongoing expenses for the franchise can be higher than the stated amounts due to the addition of these taxes. Prospective franchisees should factor these tax obligations into their financial planning and ensure they understand the tax implications of each fee.