Can Focalpoint Coaching use payments received from suppliers for any purpose?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
sor has established an Advertising and Development Fund (the "Fund") for the advertising, marketing, and public relations programs and materials Franchisor deems appropriate. Franchisee agrees to contribute to the Fund the amounts that Franchisor requires as set forth in Subsection 3.I above.
Franchisor has the right to collect for deposit into the Fund any advertising, marketing, or similar allowances paid to Franchisor by suppliers who deal with FocalPoint Franchised Businesses and with whom Franchisor has agreed that Franchisor will so deposit these allowances. (These payments are different from those which are not designated by suppliers to be used exclusively for advertising or similar purposes and which Franchisor and Franchisor's affiliates therefore may use for any purposes Franchisor and they deem appropriate, as provided in Subsection 8.B above.)
Franchisor may designate a separate entity as Franchisor deems appropriate in its sole discretion to operate and administer the Fund. Any such entity will have all of the rights and
duties as specified in this Section. Franchisor will direct all programs that the Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The Fund may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce Website and/or related strategies; administering regional and multi regional marketing and advertising programs, including, without limitation, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
The Fund periodically may give Franchisee samples of advertising, marketing, and promotional formats and materials at no cost.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the franchisor has specific rights regarding payments received from suppliers. Focalpoint Coaching can collect advertising, marketing, or similar allowances paid by suppliers who deal with Focalpoint Coaching franchised businesses and deposit them into a fund. These funds are designated to be used exclusively for advertising or similar purposes.
However, the document also states that payments not specifically designated by suppliers for advertising or similar purposes can be used by Focalpoint Coaching and its affiliates for any purpose they deem appropriate. This distinction is important for prospective franchisees to understand, as it clarifies how supplier payments are managed and allocated.
Focalpoint Coaching has the right to designate a separate entity to manage the fund and direct all programs financed by the fund, maintaining sole control over creative concepts, materials, endorsements, and their placement. The fund can be used for various advertising and marketing activities, including preparing materials, maintaining websites, administering marketing programs, and supporting public relations. This structure ensures that advertising and marketing efforts are centrally controlled and aligned with the overall brand strategy of Focalpoint Coaching.
Franchisees may receive samples of advertising materials at no cost and can purchase additional copies at the franchisor's direct cost of production, plus related charges. This provision allows franchisees to access marketing materials at a reasonable cost, supporting their local advertising and promotional efforts while ensuring consistency with the brand's standards.