In Michigan, can the Focus Cfo franchise agreement require arbitration or litigation to be conducted outside of the state?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF MICHIGAN
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- THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
- o A provision requiring that arbitration or litigation be conducted outside this state. This shall not preclude the franchisee from entering into an
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the franchise agreement cannot require arbitration or litigation to be conducted outside the state of Michigan. The FDD specifically addresses provisions that are prohibited in Michigan franchise agreements. If any of these prohibited provisions are present in the Focus Cfo franchise documents, they are considered void and unenforceable against the franchisee.
One of the enumerated provisions that Michigan prohibits is a requirement that arbitration or litigation be conducted outside of Michigan. This protection ensures that Focus Cfo franchisees in Michigan are not forced to bear the additional costs and burdens of resolving disputes in a distant jurisdiction. It allows franchisees to handle legal matters within their own state, potentially reducing expenses and logistical challenges.
This provision is particularly important for prospective Focus Cfo franchisees in Michigan as it safeguards their rights and provides a more level playing field in the event of a legal dispute with the franchisor. Franchisees should carefully review the franchise agreement to ensure compliance with Michigan law and consult with legal counsel if they have any concerns about the enforceability of specific provisions.