If the offer or sale of the Focalpoint Coaching franchise was made in Illinois, is the Rider required?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Background. We and you are parties to that certain Franchise Agreement that has been signed at the same time as the signing of this Rider (the "Franchise Agreement"). This Rider is part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of Illinois and the Franchised Business will be located in Illinois, and/or (b) you are a resident of Illinois.
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- Initial Fees. The following language is added to the end of Sections 3.A and 4.A of the Franchise Agreement:
Despite the payment provisions above, we will defer payment of initial fees owed by you to us under this Agreement until all of our pre-opening obligations have been satisfied and you commence doing business under this Agreement. This requirement has been imposed by the Illinois Attorney General's Office based on our audited financial statements.
- Governing Law. The following language is added to the end of Section 17.F of the Franchise Agreement:
However, Illinois law will apply to claims arising under the Illinois Franchise Disclosure Act.
- Consent to Jurisdiction. The following language is added to the end of Section 17.G of the Franchise Agreement:
However, subject to the parties' arbitration obligations, the parties submit to the jurisdiction and venue of the state and federal courts of competent jurisdiction in Illinois for claims arising under the Illinois Franchise Disclosure Act.
- Waiver of Jury Trial. The following language is added to the end of the second paragraph of Section 17.H of the Franchise Agreement:
However, this waiver shall not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 or Illinois Regulations at Section 260.609.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a specific Rider to the Franchise Agreement is required if the offer or sale of the franchise was made in Illinois, or if the franchisee is a resident of Illinois, and the Franchised Business will be located in Illinois. This Rider modifies several sections of the standard Franchise Agreement to comply with Illinois law.
Specifically, the Rider addresses initial fees, stipulating that Focalpoint Coaching will defer payment of initial fees until all pre-opening obligations are met and the franchisee commences business operations. This requirement is imposed by the Illinois Attorney General's Office based on Focalpoint Coaching's audited financial statements. The Rider also specifies that Illinois law will govern claims arising under the Illinois Franchise Disclosure Act, and that Illinois courts will have jurisdiction over such claims, subject to arbitration obligations.
Furthermore, the Rider includes a provision regarding waiver of jury trial, stating that the standard waiver in the Franchise Agreement does not apply to the extent prohibited by the Illinois Franchise Disclosure Act of 1987 or related Illinois Regulations. These modifications ensure that Focalpoint Coaching's franchise agreement adheres to Illinois-specific franchise laws, providing additional protections and clarity for franchisees operating in Illinois.