Why is the North Dakota Addendum being signed for the Focus Cfo Franchise Agreement?

According to the 2025 Focus Cfo Franchise Disclosure Document, the North Dakota Addendum is included in the Franchise Agreement because the franchisee is a resident of North Dakota, and the franchised business will be located in North Dakota, and/or any of the offering or sales activity relating to the Franchise Agreement occurred in North Dakota. This addendum modifies certain sections of the standard Franchise Agreement to comply with North Dakota law.

Specifically, the addendum addresses covenants not to compete, noting they are generally considered unenforceable in North Dakota. It also amends the arbitration section to specify that the arbitration location will be mutually agreed upon by Focus Cfo and the franchisee. Furthermore, the addendum replaces the original jurisdiction and governing law sections, stipulating that any legal action (except those requiring arbitration) must be brought in North Dakota courts and that North Dakota law will govern the agreement.

For a prospective Focus Cfo franchisee in North Dakota, this addendum provides important legal protections and clarifications. It ensures that the franchise agreement adheres to North Dakota's specific legal requirements, particularly regarding non-compete clauses and legal proceedings. The franchisee should carefully review the entire addendum and understand how it modifies the standard franchise agreement to protect their interests under North Dakota law.