Can a Focus Cfo franchisee waive claims under state franchise law in Minnesota?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.5.4.
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, the standard franchise agreement contains a provision that attempts to prevent franchisees from waiving claims under applicable state franchise law. Specifically, it states that no statement, questionnaire, or acknowledgment signed by the franchisee can waive any claims under state franchise law, including claims of fraud. This clause aims to protect franchisees from inadvertently relinquishing their legal rights during the initial stages of the franchise relationship.
This protection extends to claims of fraud in the inducement, meaning a Focus Cfo franchisee cannot waive their right to sue if they believe they were misled into signing the agreement. This clause is designed to supersede any other conflicting terms within the franchise agreement, ensuring that the franchisee's rights under state law are preserved. This type of clause is not uncommon, as many states have franchise laws in place to protect franchisees from overreaching franchisors.
However, it is important to note that this provision does not specifically address whether it applies to franchisees in Minnesota. The FDD includes specific addenda for franchisees in North Dakota and Maryland, which modify certain terms of the franchise agreement to comply with those states' laws. The absence of a similar addendum for Minnesota suggests that the standard terms of the Focus Cfo franchise agreement, including the waiver provision, would apply unless otherwise required by Minnesota law.
Therefore, while the Focus Cfo franchise agreement generally prevents franchisees from waiving claims under state franchise law, prospective franchisees in Minnesota should consult with legal counsel to determine whether this provision is fully enforceable under Minnesota law and whether any specific state laws might affect their rights.