What is the relationship between the Rider and the Focalpoint Coaching Franchise Agreement?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
LIFORNIA**
| Henderson, | Nevada | 89052 | ("we," | "us" | or | "our"), | and |
|---|---|---|---|---|---|---|---|
| Nevada corporation with its principal business address at 2831 St. Rose Parkway, Suite 234, the Franchise Agreement (defined below), by and between FOCALPOINT COACHING, INC., a | |||||||
| This Rider | (the "Rider") is made and entered into as of the Effective Date as stated in |
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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 (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 California, and/or (b) you are a resident of California and the Franchised Business will be located in California.
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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, payment of all initial fees owed by you to us under this Agreement is postponed until after all of our initial obligations are complete and you commence doing business.
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- Late Fees and Interest. Section 3.I of the Franchise Agreement is revised to reflect that the maximum interest rate in California currently is 10% annually, notwithstanding any statement to the contrary contained in Section 3.I of the Franchise Agreement.
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- No Waiver of Disclaimer of Reliance.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the Rider is an integral part of the Franchise Agreement. The Rider is signed concurrently with the Franchise Agreement and is annexed to it, forming a complete contractual relationship. The FDD specifies that the Rider is included because of specific state requirements or because the franchisee resides in a particular state or the franchise was offered or sold in that state. These states include Virginia, South Dakota, Washington, Illinois, North Dakota, Maryland, California, and New York.
The Rider modifies specific sections of the Franchise Agreement to comply with state laws. These modifications can include deferring initial fee payments until pre-opening obligations are met and the business is open, ensuring that franchisees do not waive rights or disclaim reliance on franchisor statements, and addressing governing law and jurisdiction issues. For example, in Washington, certain sections of the Franchise Agreement are deleted or revised, and the payment of initial franchise fees is deferred until all pre-opening and initial training obligations are fulfilled and the business is open.
Prospective Focalpoint Coaching franchisees should carefully review the Rider applicable to their state in conjunction with the Franchise Agreement to understand their rights and obligations. The Rider takes precedence over conflicting terms in the Franchise Agreement to the extent required by state law. Franchisees should pay close attention to provisions regarding initial fees, governing law, dispute resolution, and waivers to ensure they are fully informed of their legal protections and responsibilities.