For Focus Cfo, can the franchise agreement provide for arbitration to take place outside of Illinois?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
the offering or sales activity relating to the Franchise Agreement occurred in North Dakota.
-
- Releases. Section 2.3.A of the Franchise Agreement is deleted in its entirety.
-
- Covenants Not to Compete. The following language is added to the end of Section 14.3:
Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota.
-
- Arbitration. Section 18.7 of the Franchise Agreement is amended to provide that the location of arbitration shall be at a site to which Focus CFO and Franchisee agree.
-
- Jurisdiction.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the standard agreement stipulates that Ohio law governs the agreement, and any legal actions (excluding those requiring arbitration) must occur in Franklin County, Ohio. However, the document includes an addendum specific to North Dakota franchisees.
For North Dakota franchisees, Section 18.7 of the Franchise Agreement is amended, stating that the location of arbitration will be determined by mutual agreement between Focus Cfo and the franchisee. Furthermore, any legal action, except for claims subject to arbitration, must be brought in a state or federal court in North Dakota. This addendum also specifies that North Dakota law governs the agreement, except where federal law applies.
For prospective Focus Cfo franchisees, this means that the location for arbitration can vary. For most franchisees, it appears arbitration would occur in Ohio. However, for franchisees in North Dakota, the arbitration location is subject to agreement between the franchisee and Focus Cfo. This highlights the importance of reviewing any state-specific addenda to the franchise agreement to understand how standard terms may be modified based on the franchisee's location.