What section of the Focus Cfo Franchise Agreement dictates jurisdiction, as amended?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
irety.
-
- Covenants Not to Compete. The following language is added to the end of Section 14.3:
Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota.
-
- Arbitration. Section 18.7 of the Franchise Agreement is amended to provide that the location of arbitration shall be at a site to which Focus CFO and Franchisee agree.
-
- Jurisdiction. Section 18.2 of the Franchise Agreement is deleted in its entirety and replaced with the following:
Any action brought by either party except those claims required to be submitted to arbitration, shall only be brought in the appropriate state or federal court located in North Dakota. Claims for injunctive relief may be brought by Focus CFO where Franchisee is located.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the section of the Franchise Agreement that dictates jurisdiction is Section 18.2, as amended. For franchisees residing or operating in North Dakota, any legal action, except those requiring arbitration, must be brought in a state or federal court located in North Dakota. However, Focus CFO can pursue claims for injunctive relief in the jurisdiction where the franchisee is located. This does not prevent either party from enforcing judgments or arbitration awards in any appropriate jurisdiction.
For franchisees in Maryland, Section 17.2 of the Franchise Agreement is amended, allowing the franchisee to file lawsuits against Focus CFO in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This amendment ensures that franchisees have a local venue for specific legal claims related to franchise regulations within Maryland.
It's important to note that these amendments highlight Focus CFO's willingness to adapt the standard franchise agreement to comply with specific state laws, providing franchisees with certain legal protections and access to local courts for particular claims. Prospective franchisees should carefully review these jurisdictional clauses and any state-specific addenda to understand their rights and obligations regarding legal disputes.