Can a Focus Cfo franchisee disclaim reliance on statements made by the franchisor in Minnesota?

Based on the 2025 Focus Cfo Franchise Disclosure Document, the agreement stipulates that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Focus Cfo or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement. This protection applies universally, regardless of the franchisee's location, including Minnesota.

This means that a Focus Cfo franchisee in Minnesota cannot waive their right to bring claims against the franchisor based on misrepresentations or fraud. This is a significant protection for franchisees, as it ensures they can rely on the information provided by Focus Cfo during the franchise sales process. It prevents Focus Cfo from using standardized documents to circumvent state franchise laws designed to protect franchisees.

This clause is particularly important because it addresses potential power imbalances between the franchisor and franchisee. Franchisees often rely heavily on the franchisor's representations when deciding to invest in a franchise. By preventing franchisees from disclaiming reliance, the agreement reinforces the franchisor's responsibility to provide accurate and truthful information. This protection extends to claims of fraud, ensuring franchisees have recourse if they believe they were misled.

While the FDD includes addenda for Maryland and Illinois, these are specific to those states and do not alter the core protection against disclaiming reliance, which applies to all franchisees, including those in Minnesota. The multi-state addenda address specific legal requirements within those states, but the general principle remains that franchisees cannot waive their rights under applicable state laws or disclaim reliance on the franchisor's statements.