What is the purpose of the 'No Waiver of Disclaimer of Reliance' provision in the Focalpoint Coaching Rider?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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 'No Waiver of Disclaimer of Reliance' provision is included in the franchise agreement rider to protect the franchisee. This provision ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise laws, including claims related to fraud in the inducement. It also prevents the franchisee from disclaiming reliance on statements made by Focalpoint Coaching, its sellers, or anyone acting on their behalf. This clause is designed to override any conflicting terms in other documents associated with the franchise agreement. This provision appears in addenda for franchisees in New York, North Dakota, Virginia, South Dakota, Indiana, Michigan, Rhode Island, Wisconsin and Illinois.
In practical terms, this means that even if a franchisee signs a document that seems to waive their rights or disclaim reliance on information provided by Focalpoint Coaching, this provision ensures that such waivers or disclaimers are not enforceable. This is particularly important in protecting franchisees from potentially misleading or fraudulent statements made during the franchise sales process. The provision aims to provide franchisees with legal recourse if they believe they were induced into the franchise agreement based on false or misleading information.
This type of provision is not uncommon in franchise agreements, especially in states with strong franchise protection laws. It reflects a growing trend towards greater transparency and fairness in the franchise relationship. Prospective Focalpoint Coaching franchisees should carefully review this provision and understand its implications, as it offers an additional layer of protection against potential misrepresentations or overreaching by the franchisor.
It is important for prospective franchisees to consult with an attorney to fully understand their rights and obligations under the franchise agreement and any related riders or addenda. This will help ensure that they are making an informed decision and are adequately protected in their business relationship with Focalpoint Coaching.