Which sections of the Franchise Agreement are modified by this Rider for a Focalpoint Coaching franchise?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 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. Additionally, language is added to the end of Sections 3.A and 4.A regarding initial fees, stipulating that Focalpoint Coaching will not require or accept payment of initial franchise fees until the franchisee has completed pre-opening training and is open for business. A paragraph is added to address the Washington Franchise Investment Protection Act, ensuring its provisions prevail in case of conflicting laws.
For franchisees in North Dakota, language is added to the end of Sections 3.A and 4.A regarding initial fees, deferring payment until pre-opening obligations are met and business commences. 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 concerning releases, ensuring that any general release does not waive claims under the North Dakota Franchise Investment Law. Furthermore, language is added to Section 15.D regarding covenants not to compete, noting their general unenforceability in North Dakota but stating Focalpoint Coaching's intent to enforce them to the extent possible. Sections 17.E and 17.F are modified concerning arbitration and governing law, respectively, to align with the North Dakota Franchise Investment Law.
For franchisees in Minnesota, the last sentence in the first paragraph of Section 3.K is replaced, changing the insufficient funds processing fee to $30. 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 regarding releases, ensuring compliance with the Minnesota Franchises Law. Additionally, language is added to Section 5.C concerning infringement, obligating Focalpoint Coaching to protect the franchisee's right to use the Marks and indemnify them from related claims as required by Minnesota law.
For franchisees in Illinois, language is added to the end of Sections 3.A and 4.A, deferring initial fee payments until pre-opening obligations are satisfied and business commences, a requirement imposed by the Illinois Attorney General. Section 17.F is modified to specify that Illinois law applies to claims under the Illinois Franchise Disclosure Act. Section 17.G is modified to submit to the jurisdiction of Illinois courts for claims under the same act. Section 17.H is modified to state that the waiver of jury trial does not apply to the extent prohibited by the Illinois Franchise Disclosure Act. Finally, language is added to the end of Section 17.J regarding the limitation of claims.
For franchisees in New York, 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 concerning releases, ensuring that rights and causes of action under Article 33 of the General Business Law of the State of New York remain in force. Section 12.A is modified to ensure that any assignment by Focalpoint Coaching is made to an assignee willing and financially able to assume the franchisor's obligations. Section 14.A is modified to allow the franchisee to terminate the agreement on any grounds available by law under Article 33 of the General Business Law of the State of New York. Finally, Sections 17.F and 17.G are modified concerning governing law and consent to jurisdiction.