Under what condition is a general release provision in the Focus Cfo Franchise Agreement void?
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 North Dakota and the franchised business that Franchisee will operate under the Franchise Agreement will be located in North Dakota and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in North Dakota.
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- Releases. Section 2.3.A of the Franchise Agreement is deleted in its entirety.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a general release provision within the standard agreement is deleted in its entirety for franchisees who are residents of North Dakota or whose franchise sales activity occurred in North Dakota. This is specified in an addendum to the franchise agreement.
This means that Focus Cfo franchisees operating in North Dakota are not required to sign a general release to renew their franchise agreement. A general release typically waives all claims against the franchisor that arose during the initial term of the agreement.
This exception for North Dakota franchisees may be due to state laws that restrict the enforceability of general release provisions in franchise agreements. Prospective franchisees should consult with a legal professional to understand the implications of this clause and how it affects their rights.