Under the Focus Cfo agreement, what specific intellectual property rights are excluded from the arbitration requirement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for controversies or claims relating to the ownership of any and all intellectual property rights, including, but not limited to, Focus CFO's Marks, copyrights or the unauthorized use or disclosure of Focus CFO's
Confidential Information, covenants against competition and other claims for injunctive relief, or amounts owed by Franchisee to Focus CFO, all disputes arising out of or relating to this Agreement or to any other agreements between the parties, or with regard to interpretation, formation or breach of this or any other agreement between the parties, shall be settled by binding arbitration conducted in Franklin County, Ohio, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, certain disputes are excluded from mandatory arbitration. Specifically, controversies or claims relating to the ownership of any and all intellectual property rights are not subject to arbitration. This includes, but is not limited to, Focus CFO's Marks and copyrights. Also excluded are disputes regarding the unauthorized use or disclosure of Focus CFO's Confidential Information, covenants against competition, other claims for injunctive relief, and amounts owed by the franchisee to Focus CFO.
This means that Focus CFO retains the right to pursue legal action in court, rather than arbitration, to protect its intellectual property, confidential information, and enforce non-compete agreements. It also allows Focus CFO to directly pursue amounts owed by a franchisee in court.
For a prospective franchisee, this is important because it clarifies that Focus CFO is serious about protecting its brand and confidential information. If a franchisee were to infringe on Focus CFO's trademarks or disclose confidential information, Focus CFO could seek immediate injunctive relief in court, which can be a faster and more decisive process than arbitration. Franchisees should be aware of these exclusions and ensure they fully understand their obligations regarding intellectual property and confidentiality to avoid potential legal action.