Regarding the receipt for Focus Cfo, what does signing the addendum signify for the franchisee?

According to the 2025 Focus Cfo Franchise Disclosure Document, signing the addendum signifies that the franchisee acknowledges, understands, and consents to be bound by all of its terms. The addendum is specific to certain states like Illinois, Maryland, and North Dakota, and it modifies the franchise agreement to comply with those states' franchise laws.

For example, the Illinois addendum clarifies that Illinois law governs the Franchise Agreement and that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside of Illinois is permitted. It also states that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act.

Similarly, the Maryland addendum allows franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law and sets a three-year limitation for such claims. It also ensures that releases do not waive liability under Maryland law and defers initial fees until Focus Cfo completes its pre-opening obligations due to the franchisor's financial condition.

For North Dakota, the addendum states that covenants not to compete are generally unenforceable, modifies the arbitration location, and specifies that legal actions must be brought in North Dakota, except for claims requiring arbitration or injunctive relief sought by Focus Cfo. The governing law is also specified as that of North Dakota.