factual

In what areas might court decisions supersede the Focalpoint Coaching Franchise Agreement?

Focalpoint_Coaching Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.

  1. Consent to Jurisdiction. The following language is added to the end of Section 17.G of the Franchise Agreement:

However, that to the extent required by applicable law, subject to your arbitration obligation, you may bring an action in North Dakota.

  1. Limitation of Claims. The following language is added to the end of Section 17.J of the Franchise Agreement:

The time limitations set forth in this Section might be modified by the North Dakota Franchise Investment Law.

9. No Waiver of Disclaimer of Reliance. No statement, questionnaire or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

However, Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.

The forgoing choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by article 33 of the General Business law of the state of New York.

  1. Limitation of Claims. The following language is added to the end of Section 17.J of the Franchise Agreement:

However, to the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.

However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.

  1. Governing Law. The following is added to the end of Section 17.F of the Franchise Agreement:

However, nothing in this Section 17.F shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.

  1. Consent to Jurisdiction. The following is added to the end of Section 17.G of the Franchise Agreement:

However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Section 17.G shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.

    1. Waiver of Punitive Damages and Jury Trial. If required by the Minnesota Franchises Law, Section 17.H of the Franchise Agreement is deleted.
    1. Limitations of Claims. The following is added to the end of Section 17.J of the Franchise Agreement:

However, Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.

Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement. This requirement has been imposed by the Illinois Attorney General's Office based on our audited financial statements.

  1. Governing Law. The following language is added to the end of Section 17.F of the Franchise Agreement:

However, Illinois law will apply to claims arising under the Illinois Franchise Disclosure Act.

  1. Consent to Jurisdiction. The following language is added to the end of Section 17.G of the Franchise Agreement:

However, subject to the parties' arbitration obligations, the parties submit to the jurisdiction and venue of the state and federal courts of competent jurisdiction in Illinois for claims arising under the Illinois Franchise Disclosure Act.

  1. Waiver of Jury Trial. The following language is added to the end of the second paragraph of Section 17.H of the Franchise Agreement:

However, this waiver shall not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 or Illinois Regulations at Section 260.609.

  • , provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of the proviso that the non-waiver provisions of GBL 687 and 687.5 be satisfied.

The franchisee may terminate this Agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York.

Source: Item 22 — Contracts (FDD pages 56–57)

What This Means (2025 FDD)

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, several state laws and regulations may supersede the standard terms of the franchise agreement, particularly concerning franchisees in North Dakota, Minnesota, New York, Illinois and Washington. These superseding provisions primarily relate to governing law, consent to jurisdiction, limitation of claims, waivers, and franchisee rights.

For franchisees in North Dakota, the North Dakota Franchise Investment Law will apply to the agreement, potentially modifying the consent to jurisdiction and time limitations for claims. Similarly, for franchisees in Minnesota, the Franchise Agreement is subject to Minnesota Statutes Chapter 80C, which affects termination and renewal notices, governing law, consent to jurisdiction, waivers of punitive damages and jury trials, and limitations of claims. Minnesota law also specifies that actions under Minn. Stat. Sec. 80C.17 must commence within three years of the cause of action.

For franchisees in New York, Article 33 of the General Business Law of the State of New York may confer additional rights and causes of action, particularly regarding non-waiver provisions. Illinois law applies to claims arising under the Illinois Franchise Disclosure Act, affecting governing law, consent to jurisdiction, and waivers of jury trials to the extent prohibited by the Act. In Washington, the Washington Franchise Investment Protection Act will prevail in the event of a conflict of laws, and Focalpoint Coaching will not require or accept initial franchise fee payments until all pre-opening and initial training obligations have been met and the franchisee is open for business.

These state-specific stipulations ensure that franchisees' rights are protected under local laws, potentially overriding standard clauses in the Focalpoint Coaching Franchise Agreement. Prospective franchisees should carefully review the specific rider applicable to their state and consult with legal counsel to understand the full scope of their rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.