What is the relationship between the Rider and the Franchise Agreement for a Focalpoint Coaching franchise 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 is an integral part of the Franchise Agreement itself. Specifically, the Rider is for use in Virginia and is signed concurrently with the Franchise Agreement.
The Rider is included because the Franchised Business operated by the franchisee will be located in Virginia. The Rider modifies certain aspects of the standard Franchise Agreement to comply with Virginia law or address specific conditions related to franchising in Virginia.
Furthermore, the Rider includes a clause stating 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 the franchisor. This provision supersedes any other conflicting terms in any document related to the franchise agreement, offering additional protection to the franchisee.
In essence, the Rider acts as a supplement to the Franchise Agreement, tailoring the agreement to the specific legal and business environment of Virginia. It ensures that the Focalpoint Coaching franchise adheres to state regulations and provides certain protections to the franchisee that might not be present in the standard agreement.