Why is the Rider to the Focalpoint Coaching Franchise Agreement being signed?
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") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the Franchised Business that you will operate under the Franchise Agreement will be located in Washington; and/or (b) you are a resident of Washington; and/or (c) any of the offering or sales activity relating to the Franchise Agreement occurred in Washington.
2. Acknowledgments.
- a. The following Sections are hereby deleted in their entirety from the Franchise Agreement: 1.B(2), 1.B(3), 1.B(6), 1.B(7), 1.B(11) and 1.B(13).
- b. Section 1.B(9) of the Franchise Agreement is revised to read as follows:
- (9) That this Agreement's terms and covenants are reasonably necessary for Franchisor to maintain Franchisor's high standards of quality and service, as well as the uniformity of those standards at each FocalPoint Franchised Business, and to protect and preserve the goodwill of the Marks.
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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:
In lieu of an impound of franchise fees, we will not require or accept the payment of any initial franchise fees until you (a) have received all pre-opening and initial training obligations that you are entitled to under the Franchise Agreement or disclosure document, and (b) are open for business.
- Addition of Paragraphs. The following is added to the end of the Franchise Agreement:
In recognition of the requirements by the Washington Franchise Investment Protection Act and the Rules and Regulations promulgated thereunder (the "Act"), the Franchise Agreement of FocalPoint Coaching, Inc. shall be modified as follows:
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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 is signed because of specific circumstances related to the franchisee's location or activities. Specifically, the Rider is required if the franchised business will be located in a particular state, if the franchisee is a resident of that state, or if any of the offering or sales activity related to the Franchise Agreement occurred in that state. For example, separate riders are included for franchisees in Washington, Virginia, North Dakota, Maryland, Illinois, Minnesota, New York, and South Dakota.
These riders modify the standard Franchise Agreement to comply with state-specific franchise laws and regulations. This ensures that the Focalpoint Coaching franchise adheres to the legal requirements of the state in which the franchisee operates. The modifications can include changes to sections of the agreement, additions of specific language, or waivers of certain provisions to align with state laws.
For a prospective Focalpoint Coaching franchisee, this means that the terms of their Franchise Agreement may vary depending on their location. They should carefully review the Rider applicable to their state to understand any modifications to the standard agreement. It is also advisable to consult with a legal professional to ensure full comprehension of their rights and obligations under the Franchise Agreement and the Rider.