In the event of a conflict of laws, which law prevails for Focalpoint Coaching franchises?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements by the Washington Franchise Investment Protection Act and the Rules and Regulations promulgated thereunder (the “Act”), the Franchise Agreement of FocalPoint Coaching, Inc. shall be modified as follows:
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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.
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.
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.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the governing law in the event of a conflict depends on the state where the franchise is located. For franchises in Washington, the Washington Franchise Investment Protection Act prevails. For franchises governed by Minnesota law, Focalpoint Coaching will comply with Minnesota Statutes. For franchises in North Dakota, North Dakota law will apply to the agreement to the extent required by the North Dakota Franchise Investment Law. For franchises in New York, the 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.
This means that a Focalpoint Coaching franchisee's rights and obligations can vary significantly based on the specific state laws in place. These state laws often provide additional protections and regulations beyond the standard terms outlined in the franchise agreement. For example, certain states may have stricter rules regarding termination, renewal, or dispute resolution.
Prospective Focalpoint Coaching franchisees should carefully review the state-specific addenda and riders included in the FDD to understand how the franchise agreement is modified by local laws. It is also advisable to consult with an attorney experienced in franchise law within their state to fully understand their rights and obligations. This will help ensure they are aware of any potential conflicts and how they will be resolved.