In Washington, are there any restrictions on release or waiver of rights executed by a Focalpoint Coaching franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- Transfer fees are collectable to the extent that they reflect our reasonable estimated or actual costs in effecting a transfer.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of an area representative, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is
void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the Franchise Agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
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- RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the Franchise Agreement or elsewhere are void and unenforceable in Washington.
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- The franchisor may use the services of franchise brokers to assist it in selling franchises.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching Franchise Disclosure Document, there are specific restrictions regarding the release or waiver of rights by a franchisee in Washington.
Specifically, any agreement provision that conflicts with the limitations set by Washington state law is considered void and unenforceable. This includes the relationship between a Focalpoint Coaching franchisee and their independent contractors. Under Washington law RCW 49.62.030, any release or waiver of rights is void and unenforceable against an independent contractor if their annualized earnings from the party seeking enforcement do not exceed $250,000 per year, with this amount subject to annual inflation adjustments.
Furthermore, Focalpoint Coaching is prohibited from restricting a franchisee's ability to solicit or hire employees of either another franchisee within the Focalpoint Coaching system or employees of Focalpoint Coaching itself. Any provisions in the Franchise Agreement that attempt to impose such restrictions are void and unenforceable in Washington.
Finally, any statement, questionnaire, or acknowledgment signed by a Focalpoint Coaching franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Focalpoint Coaching or its representatives. This provision takes precedence over any conflicting terms in any document executed in connection with the franchise.