Does the Focus Cfo agreement allow for punitive damages in disputes between Focus CFO and the Franchisee?
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, both Focus CFO and the franchisee waive any right to claim punitive damages against each other to the fullest extent permitted by law. This means that in the event of a dispute, neither party can seek punitive damages, and recovery is limited to actual damages sustained, including reasonable accounting and legal fees.
Furthermore, the franchisee waives any right to consequential damages in any action or claim against Focus CFO concerning the agreement or any related agreement. In claims brought by the franchisee against Focus CFO, other than claims for failure to pay compensation, the franchisee's contractual damages are limited to a refund of the franchise fee.
This limitation on damages is a common provision in franchise agreements, designed to manage risk and prevent excessive financial exposure for both parties. Prospective franchisees should understand that their potential recovery in a dispute with Focus CFO is capped as described in the FDD.