Which sections of the Focalpoint Coaching Franchise Agreement are modified by this Rider?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 specific sections of the Franchise Agreement modified by the Rider depend on the franchisee's location. For franchisees in Washington, Sections 1.B(2), 1.B(3), 1.B(6), 1.B(7), 1.B(11), and 1.B(13) are deleted entirely. Section 1.B(9) is revised, and language is added to the end of Sections 3.A and 4.A regarding initial fees. An additional paragraph is added to address the Washington Franchise Investment Protection Act.
For franchisees in Minnesota, the last sentence in the first paragraph of Section 3.K is replaced concerning insufficient funds processing fees, setting the fee at $30. Language is added to Sections 4.A, 12.C.(8), and 13.C regarding releases, ensuring they comply with Minnesota franchise law. Section 5.C is modified to include an indemnification clause for trademark use as required by Minnesota law. Sections 13 and 14.B are modified to comply with Minnesota's notice requirements for termination and non-renewal. Sections 17.F and 17.G are modified to protect franchisee rights under Minnesota law, and Section 17.H is deleted if required by Minnesota law. An addition is made to Section 17.J regarding the statute of limitations for claims.
For franchisees in Illinois, language is added to the end of Section 17.F regarding governing law, Section 17.G regarding consent to jurisdiction, Section 17.H regarding waiver of jury trial, and Section 17.J regarding limitation of claims, all to comply with the Illinois Franchise Disclosure Act. For franchisees in North Dakota, language is added to Sections 4.A, 12.C.(8), and 13.C. regarding releases, Section 15.D regarding covenants not to compete, Section 17.E regarding arbitration, and Section 17.F regarding governing law, to align with the North Dakota Franchise Investment Law. In Virginia and South Dakota, language is added to the end of Sections 3.A and 4.A regarding the deferral of initial fees until pre-opening obligations are met and business commences.
These modifications and additions ensure that the Focalpoint Coaching franchise agreements comply with specific state laws, providing franchisees with certain protections and rights depending on their location. Prospective franchisees should carefully review the addendum specific to their state to understand how the standard Franchise Agreement is modified.