What is the document called that Focus Cfo uses to modify the Franchise Agreement for Maryland franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Background.
Focus CFO and Franchisee are parties to that certain Franchise Agreement dated , 20 (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum.
This Addendum is attached to and forms a part of the Franchise Agreement.
This Addendum is being signed because (a) Franchisee is a resident of Maryland and the franchised business that Franchisee will operate under the Franchise Agreement will be located in Maryland and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Maryland.
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- Governing Law.
Section 17.1 of the Franchise Agreement is amended to provide that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Jurisdiction.
Section 17.2 of the Franchise Agreement is amended to provide that Franchisee may file any lawsuit against Focus CFO in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Limitation of Claims.
Section 17.4 of the Franchise Agreement is amended to provide that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the date of the Franchise Agreement.
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- Releases.
All representations requiring that Franchisee or any prospective franchisee assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Marland Franchise Registration and Disclosure Law.
Further, any general release required as a condition of renewal, sale and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- Deferral of Initial Fees.
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
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- No Waiver.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, an "Addendum" is used to modify the Franchise Agreement for franchisees in Maryland. Specifically, the document states that the Addendum is attached to and forms a part of the Franchise Agreement and is signed because the franchisee is a resident of Maryland, the franchised business will be located in Maryland, or any of the offering or sales activity related to the Franchise Agreement occurred in Maryland.
The Addendum includes specific modifications to certain sections of the Franchise Agreement to comply with Maryland law. For example, it amends sections regarding governing law, jurisdiction, and limitation of claims, ensuring that franchisees can bring lawsuits in Maryland under the Maryland Franchise Registration and Disclosure Law. It also addresses releases and waivers of liability, ensuring they do not waive rights under Maryland law. Additionally, the Addendum stipulates that initial fees and payments are deferred until Focus Cfo completes its pre-opening obligations, due to a financial assurance required by the Maryland Securities Commissioner.
This Addendum is crucial for prospective Focus Cfo franchisees in Maryland as it outlines their rights and protections under Maryland law, which may differ from the standard Franchise Agreement. Franchisees should carefully review this Addendum with legal counsel to fully understand its implications and how it modifies the original Franchise Agreement. This ensures that franchisees are aware of their legal recourse and the specific terms that apply to their franchise operation within Maryland.