To whom does the North Dakota notice in the Focus Cfo FDD apply?

According to the 2025 Focus Cfo Franchise Disclosure Document, the North Dakota notice applies specifically to franchisees who are residents of North Dakota or who locate their Focus Cfo franchise within the state of North Dakota. This means that if a franchisee lives in North Dakota or operates their franchise in North Dakota, certain provisions within Item 17 of the FDD are modified to align with North Dakota law. These modifications cover aspects such as jurisdiction, releases, covenants not to compete, waivers of damages, payment of costs and expenses, jury trial waivers, and limitations of claims.

For a prospective Focus Cfo franchisee in North Dakota, this notice is important because it clarifies how certain clauses in the franchise agreement will be interpreted and enforced under North Dakota law. For example, the FDD states that any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota may be unenforceable under North Dakota law. This ensures that North Dakota franchisees are not unfairly subjected to legal proceedings or laws that are inconsistent with their state's regulations.

Furthermore, the notice addresses covenants not to compete, stating that they are enforceable only under certain conditions according to North Dakota law. If the Franchise Agreement contains a covenant not to compete that is inconsistent with North Dakota law, the covenant may be unenforceable. This provides additional protection to Focus Cfo franchisees in North Dakota, ensuring that non-compete agreements are reasonable and compliant with state law. The notice also clarifies that waivers of exemplary and punitive damages may not be enforceable under North Dakota law, and that the prevailing party in disputes is entitled to recover all costs and expenses, including attorneys' fees, which may differ from the standard terms in the franchise agreement.