What effect do special or restrictive legends on checks given to Focalpoint Coaching have?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisee will not waive or impair any right, power, or option this Agreement reserves (including, without limitation, Franchisor's right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before its term expires) because of any custom or practice at variance with this Agreement's terms; Franchisor's or Franchisee's failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including, without limitation, any System Standard; Franchisor's waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other FocalPoint Franchised Businesses; the existence of franchise agreements for other FocalPoint Franchised Businesses which contain provisions different from those contained in this Agreement; or Franchisor's acceptance of any payments due from Franchisee after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to Franchisor will be a waiver, compromise, settlement, or accord and satisfaction. Franchisor is authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, any special or restrictive legends or endorsements placed on checks or similar items given to Focalpoint Coaching will not act as a waiver, compromise, settlement, or accord and satisfaction. This means that if a franchisee attempts to use a restrictive endorsement on a payment to resolve a dispute or change the terms of the franchise agreement, Focalpoint Coaching is not bound by that endorsement.
Focalpoint Coaching retains the authority to remove any such legend or endorsement from the check, and upon removal, the legend or endorsement will have no effect. This clause protects Focalpoint Coaching from franchisees who might try to unilaterally alter the terms of their agreement by adding conditions to their payments.
This is a fairly standard clause in franchise agreements. It ensures that all agreements and waivers are formally documented and agreed upon by both parties, rather than implied through payment conditions. A prospective Focalpoint Coaching franchisee should be aware that any attempt to modify the franchise agreement through payment endorsements will be invalid, and they must seek formal written agreements for any changes to their franchise terms.