What is the purpose of the Rider to the Focalpoint Coaching Franchise Agreement for use in South Dakota?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
RIDER TO THE FOCALPOINT COACHING, INC. FRANCHISE AGREEMENT FOR USE IN SOUTH DAKOTA
-
- Background. We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of South Dakota and the Franchised Business will be located in South Dakota, and/or (b) 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 South Dakota.
-
- 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.
- 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 South Dakota is signed when a franchisee is a resident of South Dakota, the franchised business will be located in South Dakota, and/or the offer or sale of the franchise was made in South Dakota.
The Rider specifies that Focalpoint Coaching will defer payment of initial franchise fees until all pre-opening obligations are met and the franchisee commences business operations. This means a new Focalpoint Coaching franchisee in South Dakota won't have to pay the initial franchise fee upfront, easing the initial financial burden.
Additionally, the Rider ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under South Dakota franchise law, including claims of fraud. It also prevents disclaimers of reliance on statements made by Focalpoint Coaching or its representatives. This provision is designed to protect the franchisee's rights under South Dakota law, superseding any conflicting terms in other documents related to the franchise agreement.