Under the Focus Cfo franchise agreement, can a franchisee disclaim reliance on statements made by Focus CFO?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.5.4.
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, a franchisee cannot disclaim reliance on statements made by Focus CFO. Specifically, any statement, questionnaire, or acknowledgment signed by the franchisee in connection with starting the franchise relationship will not waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Focus CFO, franchise seller, or anyone acting on behalf of Focus CFO. This protection supersedes any other conflicting terms in any document related to the franchise agreement.
This provision is highly favorable for the franchisee. It ensures that Focus CFO franchisees retain their legal rights and recourse against Focus CFO, even if other documents might suggest otherwise. This prevents Focus CFO from using fine print or standardized forms to shield themselves from liability for misrepresentations or fraudulent statements made during the franchise sales process.
This type of clause is not universally present in all franchise agreements. Some franchisors may attempt to include language that requires franchisees to waive certain claims or disclaim reliance on representations made outside of the formal franchise agreement. The explicit protection offered by Focus CFO provides franchisees with added security and legal standing.
Prospective Focus Cfo franchisees should carefully note this protection and understand that they are entitled to rely on the statements and representations made by Focus CFO during the franchise sales process. This does not, however, relieve the franchisee of their responsibility to conduct thorough due diligence and seek independent legal and financial advice before investing in the franchise.