What is the process for a Focalpoint Coaching franchisee to request an exception to the required suppliers?
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 Focalpoint Coaching's 2025 Franchise Disclosure Document, if a franchisee wants to use a service or item that Focalpoint Coaching has not evaluated or buy/lease from a supplier that Focalpoint Coaching has not approved, the franchisee must first submit sufficient information, specifications, and samples to Focalpoint Coaching. This allows Focalpoint Coaching to determine if the item, service, or supplier meets the System Standards or approved supplier criteria.
Focalpoint Coaching may charge the franchisee or supplier a reasonable fee for this evaluation, as detailed in Item 6 of the FDD. Focalpoint Coaching will then make a decision within a reasonable time frame, which is specified as no more than 30 days. Focalpoint Coaching also states that they will periodically establish procedures for these requests and may limit the number of approved items, services, or suppliers as they deem necessary.
The approval of a supplier might depend on several factors, including product quality, delivery frequency and reliability, service standards, financial capability, customer relations, and the concentration of purchases with limited suppliers to potentially obtain better prices and service. Additionally, a supplier's willingness to compensate FocalPoint Coaching, FocalPoint International, or the Focalpoint Coaching system for the right to do business with the system can influence approval. Focalpoint Coaching, FocalPoint International, or any affiliate has the right to receive payments from suppliers due to their dealings with franchisees.
It's important to note that supplier approval might be temporary pending a more detailed evaluation. Focalpoint Coaching retains the right to inspect a proposed supplier's facilities both during and after the approval process to ensure compliance with their standards. If a supplier fails to meet these standards, Focalpoint Coaching can revoke the approval by notifying both the supplier and the franchisee in writing. Focalpoint Coaching is under no obligation to approve any request for a new supplier, product, or service. The FDD states that there are no fees associated with the evaluation and approval or disapproval of proposed suppliers.