Can Focalpoint Coaching designate sources that a Focalpoint Coaching franchisee must use?
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 Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees may be required to purchase from designated suppliers. If a franchisee wishes to purchase from an unapproved supplier, they must seek approval from Focalpoint Coaching.
Focalpoint Coaching has the right to inspect the facilities of the proposed supplier and require product samples for testing, either sent directly to Focalpoint Coaching or to an independent, certified laboratory designated by Focalpoint Coaching. The franchisee or the proposed supplier will bear the cost of the inspection and testing. Focalpoint Coaching is under no obligation to approve any new supplier, product, or service suggested by the franchisee.
Focalpoint Coaching retains 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 right to manufacture products for use in a Focalpoint Coaching Franchised Business. This ensures Focalpoint Coaching maintains control over the quality and standards of products used within its franchise system.