What is the purpose of the Rider to the Focalpoint Coaching Franchise Agreement for use in Illinois?

• 1. 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.
• 1. 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.

1. 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.

1. 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.

1. 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)