What sections of the Focalpoint Coaching Franchise Agreement have additional language added regarding releases?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Business that you will operate under the Franchise Agreement will be located in Maryland.
-
- Acknowledgements. Sections 1.B(1), (2), (3), (4), (6), (9), (11) and (13) are deleted from the Franchise Agreement.
-
- Initial Fees. The following language is added to the end of Sections 3.A and 4.A of the Franchise Agreement:
- "Based upon our financial condition, the Maryland Securities Commissioner has requested a financial assurance. Therefore, all initial fees and payments owed by you shall be deferred until we complete our pre-opening obligations under the Franchise Agreement."
-
- Releases. The following language is added to the end of the third paragraph in Section 4.A. (entitled "Initial Training") and to the end of Sections 12.C.(8) (entitled "Conditions for Approval of Transfer") and 13.C. (entitled "Agreements/Releases") of the Franchise Agreement:
However, such general release will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- Insolvency. The following language is added to the end of Section 14.B.(18) of the Franchise Agreement:
; termination upon insolvency might not be enforceable under federal insolvency law (11 U.S.C. Sections 101 et seq.), but we and you agree to enforce this provision to the maximum extent the law allows.
5.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, additional language concerning releases is added to specific sections of the Franchise Agreement, depending on the franchisee's location. For franchisees in North Dakota, the language is added to the end of the third paragraph in Section 4.A and to the end of Sections 12.C.(8) and 13.C. The added language stipulates that any general release shall not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law. This ensures that franchisees do not waive rights granted by North Dakota law through a general release.
For franchisees in New York, similar language is added to the end of the third paragraph in Section 4.A and to the end of Sections 12.C.(8) and 13.C. The additional language specifies that all rights and causes of action arising from Article 33 of the General Business Law of the State of New York and its regulations remain in force. The intent is to satisfy the non-waiver provisions of GBL 687 and 687.5, protecting the franchisee's rights under New York law.
For franchisees in Minnesota, additional language is added to the end of the third paragraph in Section 4.A. and to the end of Sections 12.C.(8) and 13.C. of the Franchise Agreement. This language specifies that any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law. This ensures that franchisees' rights under Minnesota law are protected during renewal or transfer situations. These state-specific addenda modify the standard Franchise Agreement to comply with local franchise laws, providing additional protections for franchisees.