What claims under state franchise law cannot be waived by a Focus Cfo franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.5.4.
No statement, questionnaire, or acknowledgment signed or agreed to herein by Franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by Focus CFO, franchise seller, or other person acting on behalf of Focus CFO.
This provision supersedes any other term of any document executed in connection with the Franchise.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, specifically item 23, a franchisee cannot waive claims under applicable state franchise law, including fraud in the inducement. Additionally, a Focus Cfo franchisee cannot disclaim reliance on any statement made by Focus Cfo, its franchise seller, or anyone acting on Focus Cfo's behalf. This protection is explicitly stated to supersede any other conflicting terms in any document related to the franchise agreement. This ensures that franchisees retain their rights under state franchise laws and can hold Focus Cfo accountable for their representations.
This provision is crucial for prospective Focus Cfo franchisees as it safeguards their ability to pursue legal remedies if they believe they were misled or defrauded during the franchise sales process. It prevents Focus Cfo from using contractual clauses to shield themselves from liability for misrepresentations or violations of state franchise laws. The inclusion of "fraud in the inducement" specifically protects franchisees from deceptive practices that might have led them to enter into the franchise agreement in the first place.
It is important to note that the FDD highlights specific state exceptions. For example, provisions requiring franchisees to file lawsuits in Ohio may not be enforceable under Maryland franchise law, and franchisees in Maryland may sue in Maryland for claims arising under that state's franchise laws. Similarly, covenants not to compete are generally considered unenforceable in North Dakota. These state-specific provisions demonstrate that the enforceability of certain clauses can vary depending on the franchisee's location and the applicable state laws. Therefore, prospective franchisees should carefully review the FDD and any state-specific addenda to understand their rights and obligations in their particular jurisdiction.