Are Focalpoint Coaching franchisees required to obtain a release and covenant not to sue from their owners?

According to Focalpoint Coaching's 2025 Franchise Disclosure Document, Focalpoint Coaching is entitled to a release and covenant not to sue from the franchisee and the franchisee's owners. This means that any individual or entity that has an ownership stake in the franchisee's business must also agree to release Focalpoint Coaching from any potential claims and agree not to sue the company. This requirement extends to transferring owners as well.

The release covers all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature that the franchisee or their owners may have against Focalpoint Coaching. This includes claims arising from the Franchise Agreement or the relationship between the franchisee and Focalpoint Coaching, from the beginning of time to the date of signing the release. The covenant not to sue prevents the franchisee and their owners from initiating any legal action against Focalpoint Coaching regarding these released claims.

This requirement is fairly standard in franchising, as it aims to protect the franchisor from potential legal disputes arising from the franchisee's business operations or the franchise agreement itself. However, the release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. Prospective franchisees should carefully review the release and covenant not to sue with their legal counsel to fully understand the scope of the claims being released and the implications of signing the document.