What is the purpose of the Rider to the Focalpoint Coaching Franchise Agreement for use in Maryland?
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, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- Limitation of Claims. The following language is added to the end of Section 17.J of the Franchise Agreement:
However, the limitation of such claims shall not act to reduce the three (3)-year statute of limitations afforded to you for bringing a claim under the Maryland Franchise Registration and Disclosure Law.
- Acknowledgements. The following language is added as a new Section 17.P of the Franchise Agreement:
All representations requiring you to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- 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 the 2025 Focalpoint Coaching Franchise Disclosure Document, the Rider to the Franchise Agreement for use in Maryland addresses specific legal considerations for franchisees operating in Maryland. This rider modifies the standard franchise agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law.
The rider includes provisions that allow a Focalpoint Coaching franchisee to bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the standard arbitration obligations. It also ensures that the three-year statute of limitations afforded under Maryland law for such claims is maintained, overriding any limitations in the standard agreement.
Furthermore, the rider clarifies that any requirements for a franchisee to release, estop, or waive liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. It also reinforces that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor. These stipulations are designed to protect the franchisee's rights under Maryland law, superseding any conflicting terms in the main franchise agreement.