What happens to Section 18.2 of the Focus Cfo Franchise Agreement regarding jurisdiction?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 18.2 of the Franchise Agreement is deleted in its entirety and replaced with the following:
Any action brought by either party except those claims required to be submitted to arbitration, shall only be brought in the appropriate state or federal court located in North Dakota. Claims for injunctive relief may be brought by Focus CFO where Franchisee is located. This provision shall not restrict the ability of the parties to confirm or enforce judgments or arbitration awards in any appropriate jurisdiction.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Section 18.2 of the Franchise Agreement, which pertains to jurisdiction, is entirely deleted and replaced with a new provision for franchisees residing in North Dakota.
Specifically, any legal action brought by either Focus Cfo or the franchisee, excluding claims subject to arbitration, must be initiated in the appropriate state or federal court located in North Dakota. However, Focus Cfo retains the right to pursue claims for injunctive relief in the jurisdiction where the franchisee is located. This modification does not prevent either party from confirming or enforcing judgments or arbitration awards in any suitable jurisdiction.
This change ensures that legal disputes, outside of arbitration, will be handled in North Dakota courts, providing a localized legal venue for franchisees in that state while allowing Focus Cfo to seek injunctive relief where the franchisee operates. This addendum modifies the standard agreement to accommodate specific state laws or requirements.