Under what conditions will Focalpoint Coaching not require or accept payment of initial franchise fees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
In lieu of an impound of franchise fees, we will not require or accept the payment of any initial franchise fees until you (a) have received all pre-opening and initial training obligations that you are entitled to under the Franchise Agreement or disclosure document, and (b) are open for business.
Payment of all initial fees is postponed until after all of franchisor's initial obligations are complete and franchisee commences doing business.
Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement. This requirement has been imposed by the Illinois Attorney General's Office based on our audited financial statements.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the payment of initial franchise fees is subject to certain conditions and may be deferred or not required under specific circumstances, particularly for franchisees in certain states.
For franchisees operating in Washington, Focalpoint Coaching will not require or accept any initial franchise fees until the franchisee has completed all pre-opening and initial training obligations as outlined in the Franchise Agreement or disclosure document and is open for business. This condition replaces the standard impound of franchise fees, providing a financial benefit to the franchisee by delaying the initial investment until the business is ready to operate.
In California, the payment of all initial fees is postponed until after all of Focalpoint Coaching's initial obligations are complete and the franchisee commences business. This deferral is due to the California Department of Financial Protection and Innovation determining that Focalpoint Coaching has not demonstrated adequate capitalization or must rely on franchise fees to fund operations, thus imposing a financial assurance condition.
For franchisees in Illinois, Focalpoint Coaching will defer the payment of initial fees until all pre-opening obligations have been satisfied and the franchisee has commenced business. This requirement is imposed by the Illinois Attorney General's Office based on Focalpoint Coaching's audited financial statements. These state-specific addenda modify the standard franchise agreement to comply with local franchise laws and provide additional protections or financial arrangements for franchisees.