What is the relationship between Focus Cfo's financial condition and the requirement for a financial assurance in Maryland?

According to the 2025 Focus Cfo Franchise Disclosure Document, the Maryland Securities Commissioner has mandated a financial assurance due to Focus Cfo's financial condition. This requirement directly affects the payment of initial fees for franchisees in Maryland.

Specifically, all initial fees and payments owed by Focus Cfo franchisees in Maryland are deferred. This deferral remains in effect until Focus Cfo has fulfilled all of its pre-opening obligations as outlined in the franchise agreement. This means that new franchisees in Maryland will not be required to pay the initial franchise fee or any other initial payments until Focus Cfo has met its responsibilities in setting up the franchise.

This requirement is outlined in an addendum to the franchise agreement that addresses specific legal considerations for franchisees who are residents of Maryland or whose franchised business will be located in Maryland, or if any of the offering or sales activity related to the franchise agreement occurred in Maryland. This addendum ensures compliance with the Maryland Franchise Registration and Disclosure Law and provides certain protections and modifications to the standard franchise agreement for Maryland franchisees.