For Focalpoint Coaching franchisees, what is the deadline for commencing a judicial or arbitration proceeding for claims arising from the franchise agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
However, Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.
- Limitation of Claims. The following language is added to the end of Section 17.J of the Franchise Agreement:
However, the limitation of such claims shall not act to reduce the three (3)-year statute of limitations afforded to you for bringing a claim under the Maryland Franchise Registration and Disclosure Law.
The time limitations set forth in this Section might be modified by the North Dakota Franchise Investment Law.
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 time limit to commence an action varies depending on the state where the franchise is located. For instance, Minnesota law dictates that no action can be initiated under Minn. Stat. Sec. 80C.17 more than three years after the cause of action accrues. Similarly, Maryland provides a three-year statute of limitations for bringing a claim under the Maryland Franchise Registration and Disclosure Law, and this limitation cannot be reduced by any other clause in the agreement.
For franchisees in North Dakota and New York, the FDD indicates that certain provisions of the franchise agreement related to limitations of claims may be modified or superseded by state laws. Specifically, the time limitations set forth in Section 17.J of the Franchise Agreement might be modified by the North Dakota Franchise Investment Law. Similarly, rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force, satisfying the non-waiver provisions of GBL Sections 687.4 and 687.5.
These stipulations mean that Focalpoint Coaching franchisees need to be aware of the specific laws in their state that govern franchise agreements, particularly concerning the statute of limitations for claims. It is advisable for prospective franchisees to consult with a legal professional to understand their rights and the applicable deadlines for initiating legal or arbitration proceedings, as these can significantly impact their ability to pursue claims against the franchisor.