Does the Focalpoint Coaching franchise agreement include a covenant not to sue?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Consistent with the previous introduction, you, on your own behalf and on behalf of your successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities (collectively, the "Releasing Parties"), hereby forever release and discharge us and our affiliates, our and their current and former officers, directors, shareholders, principals, employees, agents, representatives, affiliated entities, successors, and assigns (collectively, the "Franchisor Parties") from any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature and kind (collectively, "Claims") that you and any of the other Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Franchisor Parties (1) arising out of or related to the Franchisor Parties' obligations under the Franchise Agreement or (2) otherwise arising from or related to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Franchisor Parties. You, on your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of the Franchisor Parties on any of the Claims released by this paragraph and represent that you have not assigned any of the Claims released by this paragraph to any individual or entity that is not bound by this paragraph.
We also are entitled to a release and covenant not to sue from your owners. By his, her, or their separate signatures below, your transferring owners likewise grant to us the release and covenant not to sue provided above.
* This release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 23 — Receipts (FDD pages 57–259)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the franchise agreement includes a covenant not to sue. As part of the agreement, the franchisee, along with their successors, heirs, and other related parties, agrees to release Focalpoint Coaching and its affiliates from any claims or damages. This release covers all claims, known or unknown, that the franchisee has or may have against Focalpoint Coaching, arising from the Franchise Agreement or the relationship between the parties.
Specifically, the franchisee agrees not to sue Focalpoint Coaching on any of the claims released by this agreement. This means that once the agreement is signed, the franchisee gives up the right to bring legal action against Focalpoint Coaching for any issues covered by the release. The FDD also states that Focalpoint Coaching is entitled to a similar release and covenant not to sue from the franchisee's owners, ensuring that all relevant parties are bound by the same terms.
It is important to note that this release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. This means that franchisees in Washington State retain their rights under this specific law, despite the general release and covenant not to sue. Prospective franchisees should carefully review this section with their legal counsel to fully understand the implications of the release and covenant not to sue, and how it affects their rights and obligations under the franchise agreement.