How does Focalpoint Coaching ensure that approved suppliers of Operating Assets meet their standards?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
generally will be at prices exceeding our costs.
To maintain the quality of the goods and services that FocalPoint Franchised Businesses sell and our system's reputation, we may condition your right to buy or lease goods and/or services (besides those described above that you may obtain only from us, our affiliates, and/or other specified exclusive sources) on their meeting our minimum standards and specifications
and/or being acquired from suppliers that we approve. We will issue and modify standards and specifications based on our, FocalPoint International's, and our franchise owners' experience in operating FocalPoint Franchised Businesses. Our standards and specifications may impose minimum requirements for production, performance, reputation, prices, quality, design, and appearance. Our Operations Manual or other communications will identify our standards and specifications. We will notify you and, where appropriate, the suppliers, of our standards and specifications. There might be situations where you can obtain items from any supplier who can satisfy our requirements and, therefore, would be an approved supplier.
If we institute any type of restrictive sourcing program (which, as noted above, we have already done for Proprietary Products and may do so for other items) and you want to use any item or service that we have not yet evaluated or to buy or lease from a supplier that we have not yet approved or designated, you first must send us sufficient information, specifications, and samples so that we can determine whether the item or service complies with System Standards or the supplier meets approved supplier criteria. We may charge you or the supplier a reasonable fee for the evaluation (see Item 6) and will decide within a reasonable time (no more than 30 days). We periodically will establish procedures for your requests and may limit the number of approved items, services, and/or suppliers as we think best.
Supplier approval might depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay us, FocalPoint International, and/or our system for the right to do business with our system. We, FocalPoint International, and any other affiliate have the right to receive payments or other material consideration from suppliers on account of their actual or prospective dealings with you and other franchise owners and to use all amounts that we and our affiliates receive without restriction (unless we and our affiliates agree otherwise with the supplier) for any purposes we and our affiliates deem appropriate. Supplier approval might be temporary until we evaluate the supplier in more detail. We may inspect a proposed supplier's facilities during and after the approval process to make sure that the supplier meets our standards. If it does not, we may revoke our approval by notifying the supplier and you in writing. We have no obligation to approve any request for a new supplier, product, or service. There are no fees associated with our evaluation and approval or disapproval of proposed suppliers.
Insurance. Besides these purchases or leases, you must obtain and maintain, at your own expense, the insurance coverage that we periodically prescribe and satisfy other insurance-related obligations.
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 maintains the quality of goods and services sold by its franchisees and the reputation of its system by setting minimum standards and specifications for goods and services. These standards apply to items franchisees buy or lease, excluding those exclusively sourced from Focalpoint Coaching, its affiliates, or designated suppliers. Focalpoint Coaching issues and modifies these standards based on the experiences of Focalpoint International and its franchisees. These standards may cover production, performance, reputation, prices, quality, design, and appearance. Focalpoint Coaching communicates these standards and specifications through its Operations Manual or other communications, notifying both franchisees and suppliers.
If a franchisee wants to use a product or service that Focalpoint Coaching hasn't evaluated or buy from an unapproved supplier, the franchisee must provide sufficient information, specifications, and samples for evaluation. Focalpoint Coaching may charge a reasonable evaluation fee and will make a decision within 30 days. Focalpoint Coaching periodically establishes procedures for these requests and may limit the number of approved items, services, or suppliers.
Supplier approval depends on factors such as product quality, delivery reliability, service standards, financial capability, customer relations, and the supplier's willingness to compensate Focalpoint Coaching, Focalpoint International, or the system for the business opportunity. Focalpoint Coaching, Focalpoint International, or any affiliate can receive payments from suppliers and use these funds without restriction. Approvals can be temporary pending further evaluation, and Focalpoint Coaching may inspect supplier facilities to ensure compliance with standards, revoking approval if standards aren't met. However, Focalpoint Coaching is not obligated to approve any new supplier, product, or service requests. There are no fees associated with the evaluation and approval or disapproval of proposed suppliers.