In the Focus Cfo agreement, what accounting and legal fees are considered recoverable actual damages?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO and Franchisee each waive, to the fullest extent permitted by law, any right or claim for any punitive damages against the other and agree that if there is a dispute with the other, each will be limited to the recovery of actual damages sustained by it including reasonable accounting and legal fees.
Franchisee waives and disclaims any right to consequential damages in any action or claim against Focus CFO concerning this Agreement or any related agreement.
In any claim or action brought by Franchisee against Focus CFO concerning this Agreement (other than a claim for the failure to pay any compensation due Franchisee), Franchisee's contractual damages shall not exceed and shall be limited to refund of the Franchise Fee.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, in the event of a dispute between Focus Cfo and a franchisee, both parties are limited to the recovery of actual damages sustained. These damages specifically include reasonable accounting and legal fees. This means that if a Focus Cfo franchisee sues Focus Cfo (or vice versa) and wins, the franchisee can recover not only the direct financial losses they suffered but also the reasonable costs of their accountants and attorneys.
This clause provides a degree of financial protection for Focus Cfo franchisees in the event of legal disputes. It ensures that franchisees can potentially recoup the expenses associated with pursuing a legitimate claim. However, it's important to note that the fees must be deemed "reasonable," which could be subject to interpretation by a court or arbitrator.
It is also important to note that the franchisee waives any right to consequential damages in any action against Focus CFO, and in any claim brought by the franchisee against Focus CFO, the franchisee's contractual damages are limited to a refund of the franchise fee. This limitation on damages could significantly impact the potential recovery for a franchisee in certain situations.