Can Focalpoint Coaching limit the number of approved distributors or suppliers with whom a Focalpoint Coaching franchisee may deal?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may limit the number of approved distributors or suppliers (collectively "suppliers") with whom Franchisee may deal, designate sources that Franchisee must use, and/or refuse any of Franchisee's requests for any reason, including that Franchisor has already designated an exclusive source (which might be Franchisor or Franchisor's affiliate) for a particular item or service. Currently, Franchisee must purchase the Proprietary Products from Franchisor or a designated third party supplier.
Franchisor and Franchisor's affiliates may mark up and profit on the sale of goods and services to Franchisee and/or receive payments, rebates, or other material consideration from suppliers on account of such suppliers' dealings with Franchisee and other franchise owners, and may keep or use any amounts so received without restriction and for any purpose Franchisor and Franchisor's affiliates deem appropriate. Franchisor may concentrate purchases with one or more suppliers or distributors to obtain lower prices or the best advertising support or services. 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 has the authority to limit the number of approved distributors or suppliers with whom a franchisee can conduct business. They can also designate specific sources that franchisees must use and have the right to refuse a franchisee's requests for suppliers for any reason, including designating an exclusive source, which could be Focalpoint Coaching or its affiliates. Currently, franchisees are required to purchase Proprietary Products from Focalpoint Coaching or a designated third-party supplier.
Focalpoint Coaching and its affiliates may profit from the sale of goods and services to franchisees and/or receive payments from suppliers based on their dealings with franchisees. These amounts can be kept or used without restriction. Focalpoint Coaching may concentrate purchases with specific suppliers to obtain lower prices or better advertising support.
Approval of a supplier may depend on factors such as product quality, prices, consistency, financial capability, labor relations, client relations, delivery frequency, purchase concentration, and service standards. Approvals can be temporary and subject to ongoing evaluation by Focalpoint Coaching. This means a Focalpoint Coaching franchisee may have limited options regarding suppliers and could be required to purchase from sources that benefit the franchisor financially.