Does the Franchisee waive the right to consequential damages in claims against Focus Cfo?
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, the franchisee does waive the right to consequential damages in any action or claim against Focus Cfo concerning the Franchise Agreement or any related agreement. This means that if a franchisee sues Focus Cfo, they cannot recover damages that are an indirect result of Focus Cfo's actions.
Furthermore, the document states that in any claim or action brought by the franchisee against Focus Cfo concerning the agreement (other than a claim for failure to pay compensation due to the franchisee), the franchisee's contractual damages are limited to a refund of the franchise fee. This places a cap on the potential financial recovery for a franchisee in a dispute with Focus Cfo.
Focus Cfo and the franchisee also waive any right or claim for punitive damages against each other, to the fullest extent permitted by law. If there is a dispute, both parties are limited to the recovery of actual damages sustained, including reasonable accounting and legal fees. This mutual waiver of punitive damages aims to limit the financial exposure of both parties in case of a dispute and encourages resolution based on actual losses rather than punishment.