What are the implications for a Focalpoint Coaching franchisee if a designated supplier becomes unavailable?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 23–26)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, franchisees are required to purchase certain items, including Proprietary Products like business cards and marketing materials, from Focalpoint Coaching, its affiliates, or designated suppliers. If a franchisee wants to use a different item or service that Focalpoint Coaching hasn't evaluated or buy/lease from an unapproved supplier, they must submit sufficient information, specifications, and samples for evaluation. Focalpoint Coaching may charge a reasonable evaluation fee, as detailed in Item 6, and will make a decision within 30 days.
Supplier approval depends on factors like product quality, delivery reliability, service standards, financial capability, customer relations, and willingness to provide consideration to Focalpoint Coaching or its affiliates. Focalpoint Coaching, in turn, can use any payments received from suppliers without restriction. Approval can be temporary pending further evaluation, and Focalpoint Coaching may inspect supplier facilities to ensure compliance with standards.
Focalpoint Coaching has no obligation to approve any request for a new supplier, product, or service. If an approved supplier becomes unavailable, a franchisee would need to seek approval for a new supplier, potentially facing delays and the risk of disapproval. This could disrupt the franchisee's operations and potentially impact their ability to maintain System Standards. While there are no fees associated with the evaluation process, the franchisee bears the responsibility of providing the necessary information and samples for the new supplier's evaluation.