Can a Focus Cfo franchisee in Michigan agree to arbitration or litigation outside of Michigan?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.7.
Arbitration.
This Agreement evidences a transaction involving commerce and, therefore, the Federal Arbitration Act, Title 9 of the United States Code is applicable to the subject matter contained herein.
Except for controversies or claims relating to the ownership of any and all intellectual property rights, including, but not limited to, Focus CFO's Marks, copyrights or the unauthorized use or disclosure of Focus CFO's
Confidential Information, covenants against competition and other claims for injunctive relief, or amounts owed by Franchisee to Focus CFO, all disputes arising out of or relating to this Agreement or to any other agreements between the parties, or with regard to interpretation, formation or breach of this or any other agreement between the parties, shall be settled by binding arbitration conducted in Franklin County, Ohio, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
Based on the 2025 Focus Cfo Franchise Disclosure Document, Section 17.7 outlines the arbitration process. It states that disputes, excluding those related to intellectual property rights, non-compete covenants, or amounts owed to Focus CFO, will be settled through binding arbitration in Franklin County, Ohio, following the Commercial Arbitration Rules of the American Arbitration Association. This means that a Focus Cfo franchisee, including one in Michigan, generally agrees to arbitrate disputes in Ohio.
However, it is important to note the exceptions to this arbitration clause. Disputes concerning Focus CFO's intellectual property, covenants against competition, requests for injunctive relief, or amounts the franchisee owes to Focus CFO are not subject to mandatory arbitration. These types of disputes could potentially be litigated in a court of law, and the location of such litigation would be determined by the terms of the franchise agreement and applicable law.
Item 23 includes notices for franchisees in specific states, such as Maryland and North Dakota, which modify the standard agreement terms regarding legal venues and governing law. However, there is no specific Michigan addendum provided in the excerpts. Therefore, the standard arbitration clause requiring arbitration in Franklin County, Ohio, would likely apply to a Focus Cfo franchisee in Michigan, unless otherwise negotiated or modified in a separate agreement. A prospective franchisee in Michigan should consult with legal counsel to fully understand the implications of these provisions and their rights under Michigan law.