What section of the Focus Cfo Franchise Agreement is amended regarding jurisdiction?

According to the 2025 Focus Cfo Franchise Disclosure Document, Section 18.2 of the Franchise Agreement, which pertains to jurisdiction, is entirely deleted and replaced with a new provision. This amendment stipulates that any legal action initiated by either Focus Cfo or the franchisee, excluding claims subject to arbitration, must be brought in the appropriate state or federal court located in North Dakota. However, Focus Cfo retains the right to pursue claims for injunctive relief in the jurisdiction where the franchisee is located. This provision does not prevent either party from confirming or enforcing judgments or arbitration awards in any appropriate jurisdiction.

This change is significant for prospective Focus Cfo franchisees, particularly those not located in North Dakota, as it mandates that most legal disputes be resolved in North Dakota courts. This could potentially increase litigation costs and logistical challenges for franchisees located elsewhere. The exception for injunctive relief allows Focus Cfo to seek immediate legal remedies in the franchisee's local jurisdiction, which typically involves actions to stop harmful behavior.

It is important for prospective franchisees to understand the implications of this jurisdiction clause, as it dictates where they may have to travel and incur expenses to resolve disputes with Focus Cfo. Franchisees should consult with a legal professional to assess the potential impact of this clause on their specific circumstances and business operations. Understanding the legal venue for potential disputes is a crucial aspect of evaluating the franchise agreement.