Can Focalpoint Coaching concentrate purchases with one or more suppliers to obtain lower prices?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee would like to purchase any items from any unapproved supplier or distributor, Franchisee must submit to Franchisor a written request for approval of the proposed supplier or distributor. (Alternatively, the proposed supplier or distributor may submit its own request.) Franchisor has the right to inspect the proposed supplier's or distributor's facilities, and to require product samples from the proposed supplier or distributor to be delivered at Franchisor's option either directly to Franchisor or to any independent, certified laboratory which Franchisor designates for testing. Either Franchisee or the proposed supplier or distributor must pay Franchisor a fee (not to exceed the reasonable cost of the inspection and the actual cost of the test) to make the evaluation. Franchisor has no obligation to approve any new supplier, product or service Franchisee proposes. Franchisor reserves the right to periodically re-inspect the facilities and products of any approved supplier or distributor and to revoke Franchisor's approval if the supplier or distributor does not continue to meet any of Franchisor's criteria. Franchisor also reserves the right to charge manufacturers or suppliers a royalty for the right to manufacture products for use in a FocalPoint Franchised Business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching FDD, if a franchisee wishes to purchase items from a supplier not already approved, they must seek approval from Focalpoint Coaching. This can be initiated either by the franchisee or by the supplier themselves. Focalpoint Coaching retains the right to inspect the supplier's facilities and request product samples, which may be sent to an independent, certified laboratory for testing.
The franchisee or the proposed supplier is responsible for covering the costs associated with the inspection and testing, but these fees cannot exceed the reasonable cost of the inspection and the actual cost of the test. Focalpoint Coaching is under no obligation to approve any new supplier, product, or service suggested by the franchisee.
Focalpoint Coaching also reserves the right to periodically re-inspect the facilities and products of any approved supplier and can revoke approval if the supplier fails to meet Focalpoint Coaching's criteria. Additionally, Focalpoint Coaching reserves the right to charge manufacturers or suppliers a royalty for the privilege of manufacturing products for use within a Focalpoint Coaching franchise. This suggests that Focalpoint Coaching can negotiate with suppliers and potentially concentrate purchases to leverage better pricing or terms, as they maintain control over supplier approval and can impose royalties.