What effect does the 'No Waiver of Disclaimer of Reliance' provision have on statements signed by a Focalpoint Coaching franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
adding the following:
Although you may, subject to your arbitration obligation, bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- The following language is added to the end of Item 17 of the Disclosure Document:
Despite any contradicting provision in the Franchise Agreement, you have 3 years from the date on which we grant you the franchise to bring a claim under the Maryland Franchise Registration and Disclosure Law.
- No Waiver of Disclaimer of Reliance. No statement, questionnair
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching FDD, the 'No Waiver of Disclaimer of Reliance' provision ensures that any statements, questionnaires, or acknowledgments signed by a franchisee during the establishment of their franchise relationship do not waive certain legal rights. Specifically, these documents cannot waive claims under applicable state franchise laws, including claims related to fraud in the inducement. This means that even if a franchisee signs a document that seems to disclaim reliance on statements made by Focalpoint Coaching or its representatives, the franchisee retains the right to pursue legal action based on those statements.
This provision is designed to protect franchisees from inadvertently giving up their legal rights through standard paperwork. It ensures that franchisees can still hold Focalpoint Coaching accountable for any misrepresentations or fraudulent statements made during the franchise sales process. The provision explicitly states that it supersedes any other conflicting terms in any document executed in connection with the franchise, reinforcing its importance.
For a prospective Focalpoint Coaching franchisee, this 'No Waiver of Disclaimer of Reliance' provision offers a degree of security. It means that signing standard franchise documents does not prevent them from later claiming that they were misled or defrauded based on statements made by the franchisor. This can be particularly important in situations where a franchisee believes they were induced to enter the franchise agreement based on inaccurate or false information provided by Focalpoint Coaching. This provision appears in addenda for multiple states including New York, Virginia, North Dakota, and South Dakota, suggesting Focalpoint Coaching is aware of and addressing state-level franchise law requirements.