Under what circumstances is Focalpoint Coaching expressly obligated to reasonably approve or not unreasonably withhold approval?
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 the 2025 Focalpoint Coaching Franchise Disclosure Document, if a franchisee wishes to purchase items from a supplier or distributor not already approved by Focalpoint Coaching, the franchisee must submit a written request for approval. Alternatively, the unapproved supplier or distributor can submit the request themselves.
Focalpoint Coaching has the right to inspect the facilities of the proposed supplier or distributor and can request product samples, which can be delivered either directly to Focalpoint Coaching or to an independent, certified laboratory designated by Focalpoint Coaching for testing. The franchisee or the proposed supplier/distributor is responsible for paying a fee to Focalpoint Coaching to cover the reasonable cost of the inspection and the actual cost of the test.
However, Focalpoint Coaching is under no obligation to approve any new supplier, product, or service proposed by the franchisee. Focalpoint Coaching also reserves the right to periodically re-inspect the facilities and products of any approved supplier or distributor and to revoke approval if the supplier or distributor no longer meets Focalpoint Coaching's criteria. Additionally, Focalpoint Coaching reserves the right to charge manufacturers or suppliers a royalty for the right to manufacture products for use in a Focalpoint Coaching Franchised Business. This means that while a franchisee can request approval for a new supplier, Focalpoint Coaching retains significant discretion in the approval process.