Under what conditions will a Focalpoint Coaching franchisee incur an insufficient funds processing fee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
tes owe Franchisee or Franchisee's owners. Franchisee may not withhold payment of any amounts Franchisee owes Franchisor due to Franchisor's alleged nonperformance of any of Franchisor's obligations under this Agreement.
M. METHOD OF PAYMENT.
Before the Franchised Business begins operating, Franchisee agrees to sign and deliver to Franchisor the documents Franchisor requires to authorize Franchisor to debit Franchisee's
business checking account automatically for the Royalty, Technology Fee, Conference Registration Fee, Fund contributions (defined below), and other amounts due under this Agreement and for Franchisee's purchases from Franchisor and/or Franchisor's affiliates (the "Electronic Depository Transfer Account" or "EDTA"). Franchisor will debit the EDTA for these amounts on their due dates. Franchisee agrees to ensure that funds are available in the EDTA to cover Franchisor's withdrawals. If there are insufficient funds in the EDTA to cover any such amount owed (or, if Franchisee is paying by check and a check is returned for insufficient funds), Franchisor will charge Franchisee a processing fee of One Hundred Dollars ($100) to compensate Franchisor for Franchisor'
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee will incur an insufficient funds processing fee under two specific circumstances. First, if there are insufficient funds in the franchisee's Electronic Depository Transfer Account (EDTA) to cover any amount owed to Focalpoint Coaching. The EDTA is the account that Focalpoint Coaching is authorized to debit automatically for fees and purchases. Second, a fee is assessed if the franchisee is paying by check and the check is returned due to insufficient funds.
The insufficient funds processing fee is $100. This fee is intended to compensate Focalpoint Coaching for the additional administrative expenses they incur as a result of the failed payment.
If a Focalpoint Coaching franchisee experiences issues with insufficient funds, Focalpoint Coaching retains the right to demand that all subsequent payments be made via certified check. This policy is designed to minimize the risk of future payment issues and ensure timely receipt of owed amounts. Franchisees should ensure they maintain adequate funds in their EDTA or use reliable payment methods to avoid these fees and potential payment restrictions.