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For Focus Cfo, is a provision designating jurisdiction outside of Illinois valid?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT I TO THE DISCLOSURE DOCUMENT

MULTI-STATE ADDENDA

FOR THE STATE OF ILLINOIS

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 specifies that Ohio law governs the agreement, and any legal actions must be brought in the state court located in or serving Franklin County, Ohio. This means that Focus Cfo franchisees, including those in Illinois, generally must consent to litigating disputes in Ohio, except for claims subject to arbitration.

However, the FDD includes a specific addendum for Illinois franchisees. This addendum states that the provisions regarding venue and jurisdiction in the franchise agreement may not be enforceable in Illinois. Illinois law requires that a lawsuit be filed in Illinois if the franchisee operates there. This addendum modifies the original agreement to comply with Illinois law, meaning that the standard Ohio jurisdiction clause may not apply to Illinois franchisees.

This multi-state addendum ensures that Focus Cfo complies with franchise laws in various states, including Illinois, where certain standard clauses might not be enforceable. For a prospective Focus Cfo franchisee in Illinois, this means that despite what the standard franchise agreement says, they likely retain the right to have disputes resolved within the state of Illinois, which can save on travel and legal costs should a dispute arise. It is important for prospective franchisees to carefully review any state-specific addenda to understand how the standard franchise agreement is modified to comply with local laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.