Does any statement signed by a Focus Cfo franchisee waive claims of fraud in the inducement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to herein by Franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by Focus CFO, franchise seller, or other person acting on behalf of Focus CFO.
This provision supersedes any other term of any document executed in connection with the Franchise.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship will not waive claims under any applicable state franchise law, including fraud in the inducement. This also means a franchisee is not disclaiming reliance on any statement made by Focus Cfo, a franchise seller, or anyone else acting on behalf of Focus Cfo. This provision takes precedence over any other term in any document related to the franchise agreement.
This clause protects franchisees from inadvertently waiving their rights to sue for fraud based on misrepresentations made during the franchise sales process. It ensures that franchisees can still pursue legal action if they believe they were induced into signing the agreement based on false or misleading information. This is a significant protection for franchisees, as proving fraud can be difficult, and any waiver could severely limit their legal options.
However, it is important to note that this protection may be limited to claims arising under state franchise laws. Other claims, such as those based on common law fraud, may not be covered by this provision. Additionally, the specific laws and regulations governing franchise relationships vary from state to state, so franchisees should consult with an attorney to understand their rights and obligations in their particular jurisdiction. The FDD also includes a Multi-State Addenda, including one for Maryland, which states that no statement signed by a franchisee can waive claims of fraud in the inducement.