What must Focus Cfo complete before initial fees are no longer deferred for Maryland franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
yland law.
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- To the extent the Franchise Agreement requires, and the Disclosure Document discloses that a Franchisee must agree to a period of limitations of less than three (3) years, this limitation to a period of less than three (3) years shall not apply to any claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Item 5 of the Disclosure Document and Section 4 of the Franchise Agreement is amended to provide that the initial franchise fee and other initial payments are due and payable when all of Focus CFO's pre-opening obligations to Franchisee have been met.
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Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the initial franchise fee and other initial payments owed by Maryland franchisees are deferred until Focus Cfo completes its pre-opening obligations under the franchise agreement. This deferral is a result of a financial assurance required by the Maryland Securities Commissioner due to Focus Cfo's financial condition. This means that a new Focus Cfo franchisee in Maryland will not have to pay the initial franchise fee until Focus Cfo has fulfilled all of its responsibilities to help the franchisee get started.
This deferral of fees provides a significant benefit to Maryland franchisees, as it reduces their upfront financial burden. It also aligns Focus Cfo's interests with those of the franchisee, as Focus Cfo is incentivized to provide the necessary support and training to get the franchisee up and running. This arrangement offers a level of financial security for the franchisee, ensuring that they only pay the initial fees once Focus Cfo has delivered on its initial promises and obligations.
It is important for prospective franchisees to carefully review the franchise agreement to understand exactly what constitutes Focus Cfo's pre-opening obligations. This will help them ensure that Focus Cfo has met all of its requirements before they are required to pay the initial franchise fee. Franchisees should also confirm with Focus Cfo and the Maryland Securities Commissioner that the financial assurance is still in place and that the deferral of fees is still applicable.