Does the Addendum modify the covenants not to compete section of the Focus Cfo Franchise Agreement?

According to the 2025 Focus Cfo Franchise Disclosure Document, the Addendum does modify the covenants not to compete section of the Focus Cfo Franchise Agreement. Specifically, for franchisees operating in North Dakota, the Addendum adds language to the end of Section 14.3 of the Franchise Agreement, noting that covenants not to compete are generally considered unenforceable in North Dakota. This modification acknowledges the legal landscape in North Dakota regarding non-compete agreements.

This modification has significant implications for a Focus Cfo franchisee in North Dakota. Because non-compete agreements are generally unenforceable in North Dakota, Focus Cfo franchisees in that state may have more freedom to engage in competitive activities after the termination of their franchise agreement compared to franchisees in other states where such covenants are strictly enforced. This could potentially reduce the restrictions on a franchisee's ability to work in a similar field or start a competing business after leaving the Focus Cfo system.

It is important for prospective Focus Cfo franchisees in all states to carefully review Section 14.3 of the Franchise Agreement and the specific language of the Addendum to fully understand the scope and enforceability of the non-compete provisions in their jurisdiction. Franchisees should also seek legal counsel to understand how local laws may impact the enforceability of these covenants. This ensures they are fully aware of their rights and obligations both during and after the franchise term.