What is the purpose of Focalpoint Coaching's inventory requirements for franchisees?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES**
You must operate the Franchised Business according to our System Standards. System Standards may regulate, among other things, the types, models, and brands of Proprietary Products, fixtures, furniture, vehicles, furnishings, and signs (collectively, "Operating Assets"); products, other equipment and supplies you must use in operating the Franchised Business; unauthorized and prohibited products, equipment, and services; inventory requirements; and designated and approved suppliers of Operating Assets, Proprietary Products and other items.
In the case of Proprietary Products, suppliers will be limited to us, our affiliates, and/or our designated third party suppliers, and you must buy Proprietary Products during the franchise term only from us, our affiliates, and/or our designated third party suppliers at the prices we and they decide to charge. We restrict your sources of Proprietary Products in order to protect our trade secrets, assure quality, assure a reliable supply of products that meet our standards, achieve better terms of purchase and delivery service, control usage of the Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items. You will acquire an initial supply of Proprietary Products, including business cards and marketing materials from us as partial consideration for your payment of the training fee (see Item 5).
In the case of Operating Assets, suppliers could, at our option, be limited to us, our affiliates, and/or other specified exclusive sources, in which case you would have to buy such Operating Assets only from us, our affiliates, and/or the other specified exclusive sources at the prices we or they decide to charge. We have the absolute right to limit the suppliers with whom you may deal. Neither we nor any of our affiliates are currently the only approved suppliers for any of the products that you must use in operating the Franchised Business. There are currently no suppliers in which any of our officers owns an interest.
You currently must purchase all Proprietary Products (including business cards, marketing materials and coaching modules) from us, our affiliates, and our designated suppliers. If you choose to use an advertising and/or telemarketing service to promote your Franchised Business, you must use our designated supplier(s) for telemarketing and advertising services. If you choose to purchase TTI personality profile assessment access codes for use in your Franchised Business, we will require you to purchase them from us (or our affiliate) or directly from our designated supplier, currently TTI. In addition, you must license the CRM system and application service systems from our designated supplier, currently, HubSpot, for management and support services. There are no other goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate or comparable items for establishing or operating the Franchised Business that you currently must buy or lease from us (or an affiliate) or designated suppliers. Any purchases from us and our affiliates, whether required or voluntary, generally will be at prices exceeding our costs.
To maintain the quality of the goods and services that FocalPoint Franchised Businesses sell and our system's reputation, we may condition your right to buy or lease goods and/or services (besides those described above that you may obtain only from us, our affiliates, and/or other specified exclusive sources) on their meeting our minimum standards and specifications
and/or being acquired from suppliers that we approve. We will issue and modify standards and specifications based on our, FocalPoint International's, and our franchise owners' experience in operating FocalPoint Franchised Businesses. Our standards and specifications may impose minimum requirements for production, performance, reputation, prices, quality, design, and appearance. Our Operations Manual or other communications will identify our standards and specifications. We will notify you and, where appropriate, the suppliers, of our standards and specifications. There might be situations where you can obtain items from any supplier who can satisfy our requirements and, therefore, would be an approved supplier.
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, the inventory requirements are in place to ensure that franchisees operate according to the System Standards. These standards regulate various aspects of the business, including the types, models, and brands of Proprietary Products, fixtures, furniture, vehicles, furnishings, and signs, which are collectively referred to as "Operating Assets." The standards also cover the products, equipment, and supplies franchisees must use, as well as unauthorized and prohibited items, and designated and approved suppliers.
The FDD states that Focalpoint Coaching restricts the sources of Proprietary Products to protect trade secrets, assure quality, ensure a reliable supply of products that meet their standards, achieve better purchase terms and delivery service, control the use of their Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items. Franchisees will acquire an initial supply of Proprietary Products, including business cards and marketing materials, as part of their training fee payment.
For Operating Assets, Focalpoint Coaching has the option to limit suppliers to themselves, their affiliates, or other exclusive sources, requiring franchisees to purchase these assets only from these designated suppliers. Focalpoint Coaching retains the absolute right to limit the suppliers with whom franchisees may deal. Currently, neither Focalpoint Coaching nor its affiliates are the only approved suppliers for any products franchisees must use.
If a franchisee wishes to use an item or service that Focalpoint Coaching has not yet evaluated or buy/lease from a supplier that is not yet approved, the franchisee must provide sufficient information, specifications, and samples for evaluation. Focalpoint Coaching may charge a reasonable evaluation fee and will make a decision within 30 days. Supplier approval may depend on various factors, including product quality, delivery reliability, service standards, financial capability, customer relations, and the supplier's willingness to compensate Focalpoint Coaching or its affiliates for the right to do business with the system.