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What is the effect of the Maryland Securities Commission requiring a financial assurance on the timing of initial fees and payments owed by Focus Cfo franchisees?

Q: What is the effect of the Maryland Securities Commission requiring a financial assurance on the timing of initial fees and payments owed by Focus Cfo franchisees?

yland law. - 4. 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. - 5. 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. - 6. Source: Item 23 — Receipts (FDD pages 37–126)

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

yland law.

1. 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.
1. 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.

Source: Item 23 — Receipts (FDD pages 37–126)

What This Means (2025 FDD)

According to Focus Cfo's 2025 Franchise Disclosure Document, the Maryland Securities Commission has mandated a financial assurance due to the franchisor's financial condition. As a result, Focus Cfo defers all initial fees and payments owed by franchisees in Maryland. This deferral remains in effect until Focus Cfo has fulfilled all of its pre-opening obligations as outlined in the franchise agreement. This protection applies specifically to franchisees who are residents of Maryland or who will locate their franchise within Maryland.

This requirement means that prospective Focus Cfo franchisees in Maryland will not have to pay the initial franchise fee, which includes $17,000 to obtain the franchise and an $18,000 one-time initial training fee, until Focus Cfo has met its pre-opening obligations. This could significantly reduce the upfront financial burden on new franchisees and provide some assurance that Focus Cfo is committed to providing the support and resources necessary to launch the franchise before receiving payment.

It is important for potential franchisees to understand exactly what Focus Cfo's pre-opening obligations entail. These obligations should be clearly defined in Item 5 of the Disclosure Document and Section 4 of the Franchise Agreement. Franchisees should carefully review these sections to ensure they are satisfied with the scope and timing of these obligations. This deferral of fees provides a level of financial security for new franchisees in Maryland, ensuring that they only pay once Focus Cfo has demonstrated its commitment to supporting their launch.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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