From what date is the one-year limitation on claims calculated in the Focus Cfo agreement?

According to the 2025 Focus Cfo Franchise Disclosure Document, any claim concerning the franchise, the franchise business, the Franchise Agreement, or any related agreement will be barred unless an action for a claim is commenced within one year. This one-year period begins from the date on which the franchisee or Focus Cfo knew or should have known, through the exercise of reasonable diligence, about the facts that led to the claim.

This means a Focus Cfo franchisee has a limited time to take legal action if they believe they have a valid claim against Focus Cfo. The clock starts ticking when the franchisee becomes aware, or reasonably should have become aware, of the circumstances giving rise to the claim. This includes not only what the franchisee actually knew, but also what they could have discovered through reasonable inquiry.

For a prospective Focus Cfo franchisee, this limitation of claims clause underscores the importance of promptly addressing any concerns or issues that may arise during the franchise relationship. It also highlights the need to conduct thorough due diligence and seek legal advice when evaluating the franchise opportunity and throughout the term of the agreement. Franchisees should keep detailed records and promptly investigate any potential issues to ensure they do not miss the deadline for filing a claim.

It is important to note that the FDD also includes a Maryland-specific amendment that may affect the enforceability of this limitation for franchisees in that state. Specifically, for claims arising under the Maryland Franchise Registration and Disclosure Law, a limitation period of less than three years may not apply.