Under what conditions related to purchase/renewal or assignment/transfer might the general release requirement in Item 17 and Sections 2.3.1, 11.7 and 12.1.6 of the Focus Cfo Franchise Agreement not be enforceable in Maryland?

According to the 2025 Focus Cfo Franchise Disclosure Document, the general release requirements outlined in the franchise agreement may not be enforceable in Maryland under specific circumstances. These circumstances primarily relate to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that while Focus Cfo typically requires franchisees to sign releases, estoppels, or waivers of liability as part of renewal, sale, assignment, or transfer processes, these agreements will not be effective in releasing Focus Cfo from liabilities stemming from Maryland's franchise laws. This protection applies specifically to franchisees who are residents of Maryland or operate their franchises within the state.

This provision is significant for prospective Focus Cfo franchisees in Maryland because it ensures that they retain their rights under Maryland franchise law, even when signing standard release forms. The FDD explicitly states that any representations requiring a franchisee to assent to a release, estoppel, or waiver of liability will not act as such regarding liabilities incurred under the Maryland Franchise Registration and Disclosure Law. This offers an added layer of protection, ensuring that franchisees can pursue claims related to violations of Maryland franchise law without being barred by a general release they may have signed.

For instance, if a Focus Cfo franchisee in Maryland believes they were misled during the franchise sales process or that Focus Cfo violated Maryland's franchise regulations, they can still bring a claim under Maryland law, even if they signed a general release as part of a renewal or transfer. This does not mean that all releases are invalid, but rather that they cannot waive liabilities specifically arising under Maryland's franchise laws. This addendum reflects Maryland's specific legal requirements and is designed to protect franchisees' rights within the state.

It is important for prospective Focus Cfo franchisees in Maryland to understand the scope of this protection and to consult with legal counsel to fully understand their rights under Maryland franchise law. This provision is a notable exception to the standard release requirements and provides an important safeguard for franchisees operating in Maryland.