Does the Rider to the Focalpoint Coaching Franchise Agreement waive the disclaimer of reliance?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Focalpoint Coaching Franchise Disclosure Document, the Rider to the Focalpoint Coaching Franchise Agreement does not waive the disclaimer of reliance. Several state-specific riders (for New York, North Dakota, Virginia, and South Dakota) explicitly state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This "no waiver of disclaimer of reliance" clause is designed to protect franchisees. It ensures that franchisees retain their legal rights and recourse in case of misrepresentations or fraudulent statements made by Focalpoint Coaching during the franchise sales process. This protection is particularly important in states with franchise-specific laws that aim to safeguard franchisees' interests.
For a prospective Focalpoint Coaching franchisee, this means that signing the Rider does not weaken their ability to pursue legal action if they believe they were misled or defrauded. The franchisee can rely on statements made by Focalpoint Coaching during the sales process, and Focalpoint Coaching cannot use the Rider to argue that the franchisee waived their right to do so. This provision provides an additional layer of security for franchisees, especially in states with strong franchise protection laws.
It is important to note that these riders are specific to certain states (New York, North Dakota, Virginia, and South Dakota), and the applicability of these provisions depends on factors such as the franchisee's residency, the location of the franchised business, and where the franchise offer or sale occurred. Franchisees should carefully review the rider applicable to their specific situation and consult with an attorney to fully understand their rights and obligations.