What effect does a statement, questionnaire, or acknowledgment signed by a Focus Cfo franchisee have on waiving claims under state law?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship does not waive claims under state franchise law. This includes claims of fraud. Additionally, these documents cannot disclaim reliance on statements made by Focus Cfo, franchise sellers, or anyone acting on behalf of Focus Cfo. This provision takes precedence over any conflicting terms in any document related to the Focus Cfo franchise agreement.
This means that even if a Focus Cfo franchisee signs a document that appears to waive their rights, that waiver will not be legally binding with respect to state franchise laws. Franchisees retain their right to bring claims, including those related to fraudulent inducement, and can rely on statements made by Focus Cfo during the franchise sales process. This protection is designed to ensure that franchisees are not unknowingly giving up their legal rights when they sign documents at the beginning of their franchise relationship.
However, it is important to note that this protection specifically applies to claims under state franchise law. Other provisions in the Franchise Disclosure Document outline limitations on damages, waivers of jury trials, and arbitration agreements, which may affect a franchisee's ability to pursue other types of claims against Focus Cfo. Franchisees should carefully review the entire Franchise Disclosure Document and consult with an attorney to fully understand their rights and obligations.