Does Focalpoint Coaching have the absolute right to limit the suppliers with whom franchisees may deal?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
In the case of Operating Assets, suppliers could, at our option, be limited to us, our affiliates, and/or other specified exclusive sources, in which case you would have to buy such Operating Assets only from us, our affiliates, and/or the other specified exclusive sources at the prices we or they decide to charge. We have the absolute right to limit the suppliers with whom you may deal. Neither we nor any of our affiliates are currently the only approved suppliers for any of the products that you must use in operating the Franchised Business. There are currently no suppliers in which any of our officers owns an interest.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 23–26)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching retains the absolute right to limit the suppliers with whom franchisees may deal. This means Focalpoint Coaching has the authority to restrict the sources from which franchisees can purchase goods and services necessary for operating their franchise.
This control extends to Operating Assets, where suppliers could be limited to Focalpoint Coaching, its affiliates, or other exclusive sources. In such cases, franchisees would be required to purchase these assets exclusively from these designated sources at prices determined by them. While the FDD states that currently neither Focalpoint Coaching nor its affiliates are the only approved suppliers for any products franchisees must use, this policy could change.
For a prospective franchisee, this means that Focalpoint Coaching can dictate where you purchase certain items needed to run your business. While this may ensure quality and consistency across the franchise system, it also limits your ability to shop around for better prices or preferred vendors. It is important to note that Focalpoint Coaching may receive payments or other consideration from approved suppliers, which could influence their decisions regarding supplier approval.
Before entering into a franchise agreement with Focalpoint Coaching, it would be prudent to discuss the potential implications of these restrictions with existing franchisees and to carefully evaluate the approved supplier list to ensure that the pricing and quality of goods and services are competitive.