In North Dakota, under what conditions can a Focalpoint Coaching franchisee bring an action?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.
- Consent to Jurisdiction. The following language is added to the end of Section 17.G of the Franchise Agreement:
However, that to the extent required by applicable law, subject to your arbitration obligation, you may bring an action in North Dakota.
- Limitation of Claims. The following language is added to the end of Section 17.J of the Franchise Agreement:
The time limitations set forth in this Section might be modified by the North Dakota Franchise Investment Law.
9. No Waiver of Disclaimer of Reliance. No statement, questionnaire or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, a franchisee in North Dakota may bring an action subject to certain conditions. Specifically, to the extent required by applicable law and the franchisee's arbitration obligations, a Focalpoint Coaching franchisee may bring an action in North Dakota. This means that while the franchise agreement likely contains provisions for arbitration and may specify a different jurisdiction or governing law, North Dakota law will take precedence where required by the North Dakota Franchise Investment Law.
This provision ensures that Focalpoint Coaching franchisees operating in North Dakota are not unduly restricted from seeking legal recourse within their own state, particularly concerning matters governed by North Dakota's franchise laws. The FDD also states that the time limitations for claims might be modified by the North Dakota Franchise Investment Law. This suggests that the standard contractual limitations on when a franchisee can bring a claim may be altered to comply with North Dakota law, potentially providing a longer period for franchisees to file lawsuits.
Furthermore, no statement, questionnaire, or acknowledgment signed by a Focalpoint Coaching franchisee can waive claims under North Dakota franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor. This protects franchisees from inadvertently giving up their legal rights through standard paperwork. This provision supersedes any other conflicting terms in any document related to the franchise agreement, reinforcing the protection afforded to franchisees under North Dakota law.
In summary, while the Focalpoint Coaching franchise agreement may contain standard clauses regarding arbitration, jurisdiction, and limitations of claims, these are modified by the North Dakota Rider to ensure compliance with North Dakota law. This gives Focalpoint Coaching franchisees in North Dakota the right to bring actions in North Dakota subject to their arbitration obligations, ensures that they cannot waive certain legal rights, and acknowledges that state law may modify contractual limitations on claims.