What is the process for a Focalpoint Coaching franchisee to appeal a decision regarding supplier approval?
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)
The 2025 Focalpoint Coaching Franchise Disclosure Document outlines the initial process for supplier approval but does not describe any process for appealing a decision. To gain approval for a supplier not already approved, a franchisee must submit sufficient information, specifications, and samples for Focalpoint Coaching to evaluate whether the item or service meets the System Standards or if the supplier meets the approved supplier criteria. Focalpoint Coaching may charge a reasonable evaluation fee to the franchisee or supplier. A decision will be made within a reasonable time, not exceeding 30 days.
Supplier approval depends on various factors, including product quality, delivery reliability, service standards, financial capability, customer relations, and the supplier's willingness to compensate FocalPoint International or the Focalpoint Coaching system for the business opportunity. Approvals can be temporary pending further evaluation, and Focalpoint Coaching reserves the right to inspect the supplier's facilities.
Focalpoint Coaching retains the right to revoke approval if a supplier fails to maintain standards, providing written notification to both the supplier and the franchisee. The document explicitly states that Focalpoint Coaching has no obligation to approve any request for a new supplier, product, or service.
Because the FDD does not describe any appeal process, a prospective Focalpoint Coaching franchisee should ask the franchisor directly about the possibility of appealing a negative supplier approval decision, and what steps would be involved.