Are the arbitration proceedings for Focalpoint Coaching confidential?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrators have the right to award or include in their award any relief which they deems proper, including, without limitation, money damages (with interest on unpaid amounts from the date due), specific performance, injunctive relief, and attorneys' fees and costs, provided that the arbitrator(s) may not declare any Mark generic or otherwise invalid or, except as expressly provided in Subsection 17.H below, award any punitive or exemplary damages against either party (Franchisor and Franchisee hereby waiving to the fullest extent permitted by law, except as expressly provided in Subsection 17.H below, any right to or claim for any punitive or exemplary damages against the other). All aspects of the arbitration, including statements made and documents produced within the arbitration, will be confidential in nature and will not be admissible in any subsequent legal proceeding.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, all aspects of the arbitration, including statements made and documents produced, are to be kept confidential. This means that the details of any disputes that go to arbitration between a franchisee and Focalpoint Coaching will not be publicly disclosed. This confidentiality extends to statements made during the arbitration and documents presented as evidence.
This provision ensures that sensitive business information and the specifics of any legal disagreements remain private. For a prospective Focalpoint Coaching franchisee, this offers a level of protection, preventing details of potential disputes from becoming public knowledge, which could be beneficial for maintaining their business reputation.
However, it is important to note that while the arbitration itself is confidential, the outcome could still have implications. For example, while the specific details remain private, Focalpoint Coaching is able to seek recovery of costs in accordance with Subsection 17.C. Additionally, the confidentiality clause does not prevent the admissibility of the arbitration information in any subsequent legal proceeding. Franchisees should be aware of these limitations and consider the potential impact of confidentiality on their specific circumstances.