Who determines the costs of arbitration for Focalpoint Coaching franchisees?
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.
Except as expressly limited by Subsection 17.J below, Franchisor and Franchisee agree to be bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law or this Agreement, whichever expires earlier. Franchisor and Franchisee further agree that, in any arbitration proceeding, each must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any claim which is not submitted or filed as required is forever barred. The arbitrator(s) may not consider any settlement discussions or offers that might have been made by either Franchisee or Franchisor. Franchisor reserves the right, but has no obligation, to advance Franchisee's share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so will not be deemed to have waived or relinquished Franchisor's right to seek the recovery of those costs in accordance with Subsection 17.C.
Franchisor and Franchisee agree that arbitration will be conducted on an individual, not a class-wide, basis and that an arbitration proceeding between Franchisor and Franchisor's affiliates, and Franchisor's and Franchisor's affiliates' respective shareholders, members, officers, directors, agents, and/or employees, and Franchisee (and/or Franchisee's owners, guarantors, affiliates, and/or employees) may not be consolidated with any other arbitration
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the arbitrator determines how the costs of arbitration will be borne. The arbitrator has the right to award money damages, including interest on unpaid amounts, specific performance, injunctive relief, and attorneys' fees and costs. However, the arbitrator cannot declare any mark generic or invalid, or award punitive or exemplary damages against either party, unless expressly provided in Subsection 17.H. Both Focalpoint Coaching and the franchisee waive any right to claim punitive or exemplary damages against the other, except as expressly provided in Subsection 17.H.
All aspects of the arbitration, including statements and documents, will remain confidential and inadmissible in any subsequent legal proceeding. Both Focalpoint Coaching and the franchisee must adhere to any time limitations for bringing claims under applicable law or the Franchise Agreement, whichever expires earlier. In any arbitration proceeding, each party must submit any claim that would constitute a compulsory counterclaim within the same proceeding as the claim to which it relates, or the claim will be forever barred. The arbitrator cannot consider any settlement discussions or offers made by either party.
Focalpoint Coaching reserves the right, but has no obligation, to advance the franchisee's share of the arbitration costs to facilitate the proceeding. However, doing so does not waive Focalpoint Coaching's right to seek recovery of those costs in accordance with Subsection 17.C. Arbitration will be conducted on an individual basis, not a class-wide basis, and an arbitration proceeding between Focalpoint Coaching and its affiliates, shareholders, officers, directors, agents, and employees, and the franchisee (and their owners, guarantors, affiliates, and employees) cannot be consolidated with any other arbitration.