What are prospective Focalpoint Coaching franchisees encouraged to do regarding the arbitration venue provision?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- 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.
- 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)
The 2025 Focalpoint Coaching Franchise Disclosure Document (FDD) includes state-specific addenda that modify the standard franchise agreement, particularly concerning legal aspects like jurisdiction, governing law, and waivers. For instance, the Illinois addendum specifies that Illinois law governs claims arising under the Illinois Franchise Disclosure Act. It also states that, subject to arbitration obligations, the parties submit to the jurisdiction and venue of Illinois state and federal courts for claims under that Act. Similarly, the North Dakota addendum allows franchisees to bring actions in North Dakota to the extent required by applicable law, subject to their arbitration obligation. These modifications ensure that franchisees' rights under state franchise laws are protected.
For prospective Focalpoint Coaching franchisees, these state-specific provisions are crucial. They dictate where legal disputes can be initiated and which laws will govern the franchise relationship. The FDD emphasizes that certain statements or acknowledgments signed by a franchisee cannot waive claims under state franchise laws, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This is particularly relevant in states like New York and Minnesota, where specific clauses ensure the preservation of franchisees' rights under their respective state laws.
Therefore, prospective Focalpoint Coaching franchisees should carefully review the state addenda applicable to their state to understand their rights and obligations. They should also consult with an attorney to fully understand the implications of these provisions and how they may affect their franchise relationship. By understanding these state-specific legal provisions, franchisees can protect their interests and ensure compliance with local laws.