What is Focalpoint Coaching's policy on franchisees using alternative CRM systems other than HubSpot?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you must license the CRM system and application service systems from our designated supplier, currently, HubSpot, for management and support services.
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).
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.
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, franchisees must license their CRM system from Focalpoint Coaching's designated supplier, which is currently HubSpot. This means that, as of the FDD date, using an alternative CRM system is not permitted without the franchisor's explicit approval.
However, Focalpoint Coaching does provide a process for franchisees to request approval for alternative suppliers or services. If a franchisee wants to use a CRM system other than HubSpot, they must submit sufficient information, specifications, and samples to Focalpoint Coaching for evaluation. Focalpoint Coaching may charge a reasonable fee for this evaluation, and they will make a decision within 30 days.
The approval process considers factors such as product quality, delivery reliability, service standards, and the supplier's financial capability. Focalpoint Coaching also retains the right to receive payments from suppliers for the privilege of doing business with the franchise system. Even if a supplier is initially approved, Focalpoint Coaching may inspect their facilities and revoke approval if they fail to meet the franchisor's standards. Ultimately, Focalpoint Coaching has no obligation to approve any request for a new supplier, product, or service.
This policy ensures that Focalpoint Coaching maintains control over key aspects of the business, such as CRM systems, to ensure consistency and quality across all franchise locations. While franchisees are required to use HubSpot, they have the option to request approval for alternative systems, although approval is not guaranteed and is subject to Focalpoint Coaching's discretion.