Can Focalpoint Coaching condition approval of a supplier on requirements relating to financial capability?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Approval of a supplier or distributor may be conditioned on requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, client relations, frequency of delivery, concentration of purchases, standards of service, including prompt attention to complaints, or other criteria and may be temporary, pending Franchisor's continued evaluation of the supplier or distributor at any time and from time to time.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching can condition the approval of a supplier on requirements relating to financial capability. Focalpoint Coaching has the right to develop standards and specifications for required operating assets, proprietary products, and other products, materials, and supplies. They also reserve the right to approve suppliers and distributors that meet their standards.
Approval of a supplier may be based on criteria such as product quality, prices, consistency, reliability, financial capability, labor relations, client relations, frequency of delivery, concentration of purchases, and standards of service. This means that Focalpoint Coaching can evaluate a supplier's financial stability and ability to consistently provide products or services before approving them for use within the Focalpoint Coaching franchise system.
This policy ensures that franchisees purchase from reliable sources, maintaining quality and consistency across the Focalpoint Coaching brand. However, it also limits the franchisee's choice of suppliers, potentially impacting costs and flexibility. Franchisees should be aware that Focalpoint Coaching may also receive benefits from approved suppliers, which could influence their decisions.