What is the effect of the Rider on the limitation of claims provision in the Focalpoint Coaching Franchise Agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the effect of the Rider on the limitation of claims provision varies depending on the state where the franchisee is located. For instance, for franchisees in New York, the Rider ensures that the limitation of claims does not waive any rights or causes of action arising from Article 33 of the General Business Law of the State of New York. This means that New York franchisees retain their rights under New York franchise law, specifically GBL Sections 687.4 and 687.5, despite any limitations of claims in the standard agreement.
Similarly, for franchisees in Maryland, the Rider specifies that the limitation of claims does not reduce the three-year statute of limitations for bringing a claim under the Maryland Franchise Registration and Disclosure Law. This ensures that Maryland franchisees have at least three years to bring claims under Maryland franchise law, regardless of any shorter limitation periods in the standard agreement.
For franchisees in North Dakota, the Rider indicates that the time limitations set forth in Section 17.J of the Franchise Agreement might be modified by the North Dakota Franchise Investment Law. This suggests that North Dakota law could override the standard limitation of claims provision, potentially providing a longer or different period for franchisees to bring claims. Therefore, prospective Focalpoint Coaching franchisees should carefully review the specific Rider applicable to their state to understand how it modifies the limitation of claims provision in the Franchise Agreement.