What section of the Focus Cfo Franchise Agreement is amended regarding governing law?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Governing Law. Section 18.1 of the Franchise Agreement is deleted in its entirety and replaced with the following:
Except to the extent this Agreement or any particular provision is governed by the U.S. Trademark Act of 1946 or other federal law, this Agreement shall be governed by and construed in accordance with the laws of the State of North Dakota (without reference to its conflict of laws principles). The Federal Arbitration Act shall govern all matters subject to arbitration. References to any law refers also to any successor laws and to any published
regulations for such laws as in effect at the relevant time. References to a governmental agency also refer to any regulatory body that succeeds the function of such agency.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the specific section of the Franchise Agreement amended regarding governing law depends on the franchisee's location. For franchisees in North Dakota, Section 18.1 of the Franchise Agreement, which addresses governing law, is entirely deleted and replaced. The new language specifies that the laws of North Dakota will govern the agreement, except where federal law or the U.S. Trademark Act of 1946 apply. The Federal Arbitration Act will govern all matters subject to arbitration.
For franchisees in Maryland, Section 17.1 of the Franchise Agreement is amended to allow franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This amendment ensures that Maryland franchisees have the right to pursue legal claims related to franchise law within their own state, which may offer additional protections or a more familiar legal environment.
These amendments highlight Focus Cfo's willingness to adapt its standard Franchise Agreement to comply with specific state laws, particularly those concerning franchise registration and disclosure. Prospective franchisees should carefully review any addenda or amendments to the Franchise Agreement to understand how the governing law and dispute resolution processes may be modified based on their location. It is also advisable to seek legal counsel to fully understand the implications of these changes.