What is the purpose of the Rider to the Focalpoint Coaching Franchise Agreement for use in Virginia?
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 the Franchised Business that Franchisee will operate under the Franchise Agreement will be located in Virginia.
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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, 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 Focalpoint Coaching's 2025 Franchise Disclosure Document, the Rider to the Franchise Agreement for use in Virginia is included as part of the Franchise Agreement when the Franchised Business will be located in Virginia.
The Rider specifies that Focalpoint Coaching will defer payment of initial fees owed by the franchisee until all pre-opening obligations have been met and the franchisee commences business operations. This means a new Focalpoint Coaching franchisee in Virginia won't have to pay the initial franchise fee upfront. Instead, they can delay payment until after Focalpoint Coaching has fulfilled its obligations to help them get started, and they've actually opened their doors.
Additionally, the Rider ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Focalpoint Coaching or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise, strengthening the franchisee's legal protections under Virginia law.