Does the Focus Cfo Franchise Agreement include a waiver of exemplary and punitive damages?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO and Franchisee each waive, to the fullest extent permitted by law, any right or claim for any punitive damages against the other and agree that if there is a dispute with the other, each will be limited to the recovery of actual damages sustained by it including reasonable accounting and legal fees.
Franchisee waives and disclaims any right to consequential damages in any action or claim against Focus CFO concerning this Agreement or any related agreement.
In any claim or action brought by Franchisee against Focus CFO concerning this Agreement (other than a claim for the failure to pay any compensation due Franchisee), Franchisee's contractual damages shall not exceed and shall be limited to refund of the Franchise Fee.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, both Focus Cfo and the franchisee waive any right to claim punitive damages against each other to the fullest extent permitted by law. In case of a dispute, both parties are limited to recovering actual damages, including reasonable accounting and legal fees. The franchisee also waives any right to consequential damages in actions against Focus Cfo related to the agreement.
For a prospective franchisee, this means that in any legal dispute with Focus Cfo, they can only recover direct financial losses and associated costs, such as legal and accounting fees. They cannot claim additional damages intended to punish Focus Cfo (punitive damages) or indirect losses resulting from the dispute (consequential damages). This limitation applies to claims concerning the Franchise Agreement or any related agreement.
Furthermore, the Focus Cfo Franchise Agreement stipulates that in any claim brought by the franchisee against Focus Cfo (excluding claims for unpaid compensation), the franchisee's contractual damages are limited to a refund of the franchise fee. This provision caps Focus Cfo's potential liability to the amount of the initial franchise fee paid by the franchisee, which could be a significant limitation on potential recovery in case of a dispute.