What section of the Focalpoint Coaching Franchise Agreement is modified by the Rider regarding arbitration?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- Arbitration. The following language is added to the end of Section 17.E of the Franchise Agreement:
However, to the extent required by the North Dakota Franchise Investment Law (unless preempted by the Federal Arbitration Act), arbitration will be at a site to which we and you mutually agree.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the Rider modifies Section 17.E of the Franchise Agreement regarding arbitration, but only for franchisees in North Dakota. Specifically, the language added to Section 17.E stipulates that if required by the North Dakota Franchise Investment Law, arbitration must occur at a site mutually agreed upon by both Focalpoint Coaching and the franchisee, unless this requirement is preempted by the Federal Arbitration Act.
This modification ensures that Focalpoint Coaching franchisees in North Dakota receive certain protections under their state's franchise laws regarding the location of arbitration proceedings. This means a North Dakota franchisee may have the right to arbitrate closer to home, rather than being forced to travel to a location chosen solely by Focalpoint Coaching. The stipulation acknowledges the potential conflict between state and federal law, clarifying that federal law takes precedence if it preempts the North Dakota Franchise Investment Law.
For prospective Focalpoint Coaching franchisees, this highlights the importance of understanding how state-specific riders can alter the terms of the standard Franchise Agreement. Franchisees should pay close attention to any addenda or riders that apply to their state of residence or the location of their franchised business, as these can provide additional rights or impose different obligations than the standard agreement. It is also important to note that this modification only applies to franchisees in North Dakota, and franchisees in other states may be subject to different arbitration terms.