What pre-opening obligations must Focalpoint Coaching fulfill before accepting initial franchise fees?
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 California, and/or (b) you are a resident of California and the Franchised Business will be located in California.
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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, payment of all initial fees owed by you to us under this Agreement is postponed until after all of our initial obligations are complete and you commence doing business.
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- Late Fees and Interest. Section 3.I of the Franchise Agreement is revised to reflect that the maximum interest rate in California currently is 10% annually, notwithstanding any statement to the contrary contained in Section 3.I of the Franchise Agreement.
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- 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.
SIGNATURES ON THE FOLLOWING PAGE
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| FOCALPOINT COACHING, INC. | FRANCHISE OWNER | |---------------------------------------|---------------------------------------------------------------------------------------------------------| | By: Stephen A. Thompson, President | (IF YOU ARE TAKING THE FRANCHISE AS A CORPORATION, LIMITED LIABILITY COMPANY, OR PARTNERSHIP): | | DATED: | [Print Name of Franchisee Entity] By: [Signature of person signing on behalf of entity] Title: DATED: |
**RIDER TO THE FOCALPOINT COACHING, INC.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the franchisor's pre-opening obligations that must be fulfilled before accepting initial franchise fees vary based on the state where the franchise is located. For franchisees in Illinois, Minnesota, North Dakota, South Dakota, and Virginia, Focalpoint Coaching will defer payment of initial fees until all pre-opening obligations have been satisfied and the franchisee commences business operations.
For franchisees in Washington, Focalpoint Coaching will not require or accept any initial franchise fees until the franchisee has received all pre-opening and initial training obligations they are entitled to under the Franchise Agreement or disclosure document and are open for business.
These stipulations ensure that Focalpoint Coaching franchisees in these states receive the necessary support and training before being required to pay the initial franchise fees, aligning the franchisor's interests with the franchisee's successful launch. This arrangement can reduce the financial risk for new franchisees, as they only pay the initial fee after the franchisor has delivered the promised pre-opening support and training.