Direct owner-earnings answer
This is an estimated owner-operator benefit, not an official FocalPoint earnings claim. Under the tested U.S. Unit model, the base scenario is about $91,900 before personal income taxes, financing costs, depreciation and capital spending. Because the owner is assumed to perform the coaching and full-time management work, part of this amount compensates labor rather than representing passive business profit.
- Legal franchisor
- FocalPoint Coaching, Inc., a Nevada corporation.
- Current offer reviewed
- U.S. FocalPoint Unit franchise; FDD issued March 10, 2026.
- Item 19 status
- No financial performance representation; no official sales, profit, EBITDA, cash flow or owner-compensation figure.
- Applicable population
- FocalPoint franchised coaching and consulting businesses; 229 U.S. franchised outlets and no company-operated outlets at December 31, 2025.
- Benchmark basis
- May 2023 BLS NAICS 541600 wage data for Management Analysts and General and Operations Managers; the older benchmark date is one reason confidence is limited.
- Date checked
- July 15, 2026.
The current same-brand FDD supplies the operating structure and recurring fees but no revenue or earnings data, so the result depends materially on an external labor-value proxy and explicit modeling assumptions.
Annual range across the conservative, base and upside analytical cases.
Includes the economic value of the owner's full-time work; it is not passive profit.
Current mature-year owner-only total used in the model, before contingent or optional charges.
Year-end 2025 outlet count; this is not a count of unique owners.
The franchisor reports no unit sales, cost, profit or owner-income result.
May 2023 annual mean in NAICS 541600, used as a labor-value and manager-cost proxy.
Item 19 evidence
What does the 2026 FocalPoint Item 19 actually disclose?
Officially, it discloses no financial performance representation. Item 19 states that FocalPoint Coaching, Inc. does not make representations about a prospective franchisee's future performance or the past financial performance of company-owned or franchised outlets. That means there is no official Average Unit Volume, median revenue, gross profit, operating profit, EBITDA, net income, cash flow or owner compensation to quote. The applicable source is the 2026 FDD, Item 19, page 43.
This absence matters. Revenue cannot be inferred from the initial investment, royalty schedule, outlet count or the official website. The FTC Franchise Rule Compliance Guide explains the framework for franchisor disclosures; an independent scenario must remain clearly separate from an Item 19 claim.
What does Item 20 add to the earnings analysis?
Item 20 adds system-population and turnover context, not an earnings benchmark. For the U.S. Unit format, the official tables show 229 franchised outlets and zero company-operated outlets at the end of 2025. Across 2023–2025, the tables show 172 openings and 104 combined terminations, non-renewals, reacquisitions and other cessations. These are outlet events, not proof of profit or loss.
| Official Item 20 year | Outlets at start | Opened | Terminated, non-renewed or ceased | Outlets at end |
|---|---|---|---|---|
| 2023 | 161 | 46 | 38 | 169 |
| 2024 | 169 | 57 | 25 | 201 |
| 2025 | 201 | 69 | 41 | 229 |
| Three-year total | — | 172 | 104 | — |
Source: 2026 FDD, Item 20, pages 43–50. “Terminated, non-renewed or ceased” combines the official Item 20 columns for terminations, non-renewals, franchisor reacquisitions and ceased operations for other reasons. FocalPoint reported no franchisor reacquisitions in these three years.
Scenario model
How is the $62,000–$125,000 range calculated?
The range is an independent structural estimate for a mature, owner-operated U.S. Unit. The model uses a $243,000 central revenue test, a 50% pre-franchise cash contribution assumption and $29,600 of current core recurring FDD fees. Conservative and upside cases apply the prompt-prescribed 80% and 120% revenue spread and a three-percentage-point margin sensitivity.
The $243,000 central revenue test is calibrated to twice the BLS May 2023 annual mean wage of $121,500 for Management Analysts in NAICS 541600, Management, Scientific, and Technical Consulting Services. The 2.0× conversion is an editorial scenario assumption: at the base 50% contribution margin, the business produces $121,500 before FDD fees, equal to the government labor-value proxy. It is not an observed FocalPoint revenue result.
- Conservative: $194,400 revenue, equal to 80% of the central test, with a 47% pre-franchise contribution margin.
- Base: $243,000 revenue with a 50% pre-franchise contribution margin.
- Upside: $291,600 revenue, equal to 120% of the central test, with a 53% pre-franchise contribution margin.
- Contribution definition: cash remaining after normal non-franchisor operating expenses, before FDD fees, owner compensation, interest, depreciation, capital spending and taxes.
| Scenario | Revenue | Pre-franchise contribution | Core FDD fees | Owner-operator benefit |
|---|---|---|---|---|
| Conservative | $194,400 | 47% / $91,368 | $29,600 | $61,768 |
| Base | $243,000 | 50% / $121,500 | $29,600 | $91,900 |
| Upside | $291,600 | 53% / $154,548 | $29,600 | $124,948 |
Pre-tax cash benefit before financing, depreciation and capital spending; values include compensation for the owner's labor.
Interpretation: The modeled range widens because revenue and the cash contribution margin move together; neither endpoint is a franchisor forecast or probability statement.
Sources and method: 2026 FDD, Item 6, pages 6–12; BLS May 2023 NAICS 541600 wage table; editorial 80%/100%/120% revenue spread and 47%/50%/53% contribution assumptions. Calculations use full precision and are displayed to the nearest dollar.
Recurring fee burden
Which FDD fees materially reduce annual owner earnings?
The model subtracts $29,600 per year in current core recurring FDD fees for a mature owner-only Unit. This is an official-fee calculation from Item 6, not a franchisor-reported annual total. It uses the month-13-and-later royalty and the current listed amounts for the advertising fund, conference registration, technology and CRM license; applicable taxes on those charges are not included.
The $23,400 mature-year royalty is a fixed $1,950 monthly amount, not a percentage of sales. As a result, the same nominal fee consumes about 15.2% of conservative scenario revenue, 12.2% of base revenue and 10.2% of upside revenue when the other modeled recurring fees are included. Fixed fees create more pressure when client revenue is low.
The calculation excludes contingent and variable charges, including a Marketing Support Initiative fee if the minimum client base is not maintained, future application-service costs, travel and lodging for conferences, optional products, additional training, late charges and fees associated with Associates. Item 6 permits up to three Associates and raises the monthly royalty/associate schedule to $3,150 with one Associate, $4,350 with two and $5,500 with three from month 13 onward. Associate economics therefore require separate revenue and labor assumptions.
Owner role
How does active owner involvement change the result?
Active involvement is the decisive economic variable in this model. The 2026 FDD requires a fully trained, full-time manager and says that the owner, managing owner or approved Business Manager must devote full time and efforts to management and supervision. The owner-operator scenarios assume the owner fills that role and delivers the professional service, so the residual includes labor compensation.
For a manager-run stress test, the model subtracts the BLS May 2023 annual mean wage of $121,500 for Management Analysts in NAICS 541600. That is the lower of two relevant same-industry benchmarks: General and Operations Managers averaged $164,330. Using the lower figure avoids overstating the staffing hurdle, but the calculation still excludes employer payroll taxes and benefits.
The manager-run test subtracts a $121,500 salary-only benchmark from each owner-operated result.
Interpretation: The conservative and base manager-run cases are negative, while the upside case leaves only about $3,400 before payroll burden, debt, depreciation, capital spending and taxes. The model therefore does not support treating this Unit as passive at the tested revenue levels.
Sources and method: 2026 FDD, Item 15, page 35; BLS May 2023 NAICS 541600 Management Analysts annual mean wage of $121,500. The salary-only benchmark is subtracted from the owner-operator benefit; no employer benefits or payroll taxes are included.
- Owner-operator benefit: residual cash after modeled operating expenses and recurring FDD fees, with the owner performing the full-time manager and professional service role.
- Manager-run residual: modeled owner-operator benefit less a paid professional wage proxy. It is not a franchisor-reported profit figure.
- Business profit: the return remaining after compensating all labor, including the owner's work at a market rate. The scenario does not demonstrate positive business profit in the conservative or base manager-run cases.
- Take-home pay: cash after personal taxes and individual financial decisions. It is not estimated because tax outcomes vary by entity, jurisdiction, deductions and owner circumstances.
Uncertainty
What could move actual FocalPoint owner earnings outside the range?
The largest uncertainty is sales realization: the FDD provides no client count, pricing distribution, revenue history or mature-outlet cohort. A coach's ability to acquire and retain clients, sell individual and group programs, manage delivery capacity and sustain pricing can move cash benefit far more than small changes in technology or conference fees.
- Client economics: verify active-client count, average monthly billing, engagement length, discounts, bad debt, churn and the split between one-to-one coaching, groups, training and consulting.
- Maturity and ramp: separate first-year practices from mature Units; the model is a mature-year test and does not represent the launch period.
- Owner time: quantify hours spent on selling, networking, preparation, delivery, administration and required system activity. A high residual may still imply a modest effective hourly return.
- Local cost structure: confirm home-office versus commercial-office expense, travel, insurance, local marketing, professional services and technology beyond the listed FDD charges.
- Associate model: obtain a unit-level profit bridge before adding Associates because recurring royalty, advertising, technology, CRM and training obligations rise with personnel.
- Financing: model interest and principal separately using the buyer's actual loan amount, rate, term and fees. The FDD states that the franchisor does not offer financing.
- Outlet outcomes: ask current and former franchisees about revenue, expenses, owner hours, manager use, closures and transfers; Item 20 provides the contact population for that work.
Buyer verification
What should a buyer verify before relying on any earnings claim?
A buyer should obtain a reproducible revenue-to-cash-flow bridge from franchisees and compare it with the exact Item 19 language. Because the 2026 FDD makes no financial performance representation, any oral, spreadsheet or presentation-based income statement should be reconciled to written substantiation and reviewed with a franchise attorney and accountant.
- Confirm whether any number is per outlet, per owner, per territory or for a multi-unit portfolio.
- Ask whether the figure is average, median, range, selected performer or a single example, and request the numerator, denominator and reporting period.
- Identify whether closed, transferred, new, part-time, non-reporting or low-revenue Units were excluded.
- Reconcile Gross Sales to cash collected, then subtract ordinary operating expenses and every applicable Item 6 recurring fee.
- Separate owner salary, draw, distributions, retained earnings and market compensation for labor.
- Interview both current and former franchisees from Item 20, including owners with comparable tenure, territory and involvement.
Decision-useful synthesis
The strongest defensible annual range is approximately $62,000–$125,000 of estimated owner-operator benefit, with a $91,900 base scenario. It is scenario-based, not official or derived from Item 19. The most important driver is the owner's ability to produce and retain client revenue while personally filling the full-time management and service role. The largest unresolved uncertainty is the absence of same-brand revenue, expense and mature-cohort data. Before committing capital, a buyer should verify Item 19's no-FPR status, request written substantiation for any separate financial claim, and test the complete revenue-to-cash-flow bridge in interviews with current and former Unit franchisees.
All earnings figures are pre-tax analytical estimates. Interest, depreciation, capital expenditures, debt principal, personal income taxes and employer payroll burden for a hired manager are excluded unless expressly stated.