What is the specific state law that this addendum addresses for Focus Cfo franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Background.
Focus CFO and Franchisee are parties to that certain Franchise Agreement dated , 20 (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum.
This Addendum is attached to and forms a part of the Franchise Agreement.
This Addendum is being signed because (a) Franchisee is a resident of Maryland and the franchised business that Franchisee will operate under the Franchise Agreement will be located in Maryland and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Maryland.
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- Governing Law.
Section 17.1 of the Franchise Agreement is amended to provide that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Jurisdiction.
Section 17.2 of the Franchise Agreement is amended to provide that Franchisee may file any lawsuit against Focus CFO in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Limitation of Claims.
Section 17.4 of the Franchise Agreement is amended to provide that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the date of the Franchise Agreement.
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- Releases.
All representations requiring that Franchisee or any prospective franchisee assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Marland Franchise Registration and Disclosure Law.
Further, any general release required as a condition of renewal, sale and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- Deferral of Initial Fees.
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
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- No Waiver.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the addendum addresses the Maryland Franchise Registration and Disclosure Law for franchisees operating in Maryland. The addendum is signed because the franchisee is a resident of Maryland or the franchise offering or sales activity occurred there.
Specifically, the addendum amends several sections of the Franchise Agreement to ensure compliance with Maryland law. It allows franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, amending sections 17.1 and 17.2 of the agreement. It also stipulates that any claims under this law must be brought within three years of the Franchise Agreement date.
Furthermore, the addendum clarifies that any releases or waivers of liability do not apply to liabilities incurred under the Maryland Franchise Registration and Disclosure Law. It also addresses the initial fees and payments, stating that they are due when Focus Cfo has met all pre-opening obligations. The Maryland Securities Commissioner requires a financial assurance due to the franchisor's financial condition, leading to the deferral of initial fees until Focus Cfo completes its pre-opening obligations. Certain termination clauses related to bankruptcy may not be enforceable under federal law.