Can Focalpoint Coaching refuse a franchisee's request for a supplier approval for any reason?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee would like to purchase any items from any unapproved supplier or distributor, Franchisee must submit to Franchisor a written request for approval of the proposed supplier or distributor. (Alternatively, the proposed supplier or distributor may submit its own request.) Franchisor has the right to inspect the proposed supplier's or distributor's facilities, and to require product samples from the proposed supplier or distributor to be delivered at Franchisor's option either directly to Franchisor or to any independent, certified laboratory which Franchisor designates for testing. Either Franchisee or the proposed supplier or distributor must pay Franchisor a fee (not to exceed the reasonable cost of the inspection and the actual cost of the test) to make the evaluation. Franchisor has no obligation to approve any new supplier, product or service Franchisee proposes. Franchisor reserves the right to periodically re-inspect the facilities and products of any approved supplier or distributor and to revoke Franchisor's approval if the supplier or distributor does not continue to meet any of Franchisor's criteria. Franchisor also reserves the right to charge manufacturers or suppliers a royalty for the right to manufacture products for use in a FocalPoint Franchised Business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee must obtain approval from Focalpoint Coaching to purchase items from a supplier or distributor that is not already approved. The franchisee or the proposed supplier will bear the cost for Focalpoint Coaching to inspect the supplier's facilities and to test product samples. Focalpoint Coaching retains the right to inspect the facilities and products of any approved supplier or distributor periodically and to revoke approval if the supplier or distributor fails to continue meeting Focalpoint Coaching's criteria.
Focalpoint Coaching has no obligation to approve any new supplier, product, or service that a franchisee proposes. This means Focalpoint Coaching can refuse a franchisee's request for a supplier approval for any reason.
This clause allows Focalpoint Coaching to maintain quality control and uniformity within the franchise system. While this protects the brand, it may limit a franchisee's options and potentially increase their costs if they are required to use only Focalpoint Coaching-approved suppliers, even if other suppliers offer better pricing. It is also within Focalpoint Coaching's right to charge suppliers a royalty to manufacture products for Focalpoint Coaching franchised businesses.