Why is Focus Cfo using an addendum to the Franchise Agreement for franchisees in Maryland?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
ARYLAND ADDENDUM TO FOCUS CFO GROUP, LLC FRANCHISE AGREEMENT**
| CFO," | "Franchisor," | "Company", | "us", | "we" | or | "our"), | and |
|---|---|---|---|---|---|---|---|
| ("Franchisee," "you" or "your") as an Area | |||||||
| President. |
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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 Maryland and the franchised business that Franchisee will operate under the Franchise Agreement will be located in Maryland and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Maryland.
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- Governing Law. Section 17.1 of the Franchise Agreement is amended to provide that you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Jurisdiction. Section 17.2 of the Franchise Agreement is amended to provide that Franchisee may file any lawsuit against Focus CFO in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Limitation of Claims. Section 17.4 of the Franchise Agreement is amended to provide that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the date of the Franchise Agreement.
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- Releases. All representations requiring that Franchisee or any prospective franchisee assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Marland Franchise Registration and Disclosure Law. Further, any general release required as a condition of renewal, sale and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- Deferral of Initial Fees. Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
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- No Waiver. No statement, questionnaire, or acknowledgment signed or agreed to by a 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 any franchisor, franchise seller,
or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, each of the undersigned hereby acknowledge having read this Addendum and understands and consents to be bound by all of its terms.
| Focus CFO Group, LLC | Franchise: | ||
|---|---|---|---|
| By: | By: | ||
| Its: | Its: | ||
| Dated: | Dated: |
NORTH DAKOTA ADDENDUM TO FOCUS CFO GROUP, LLC FRANCHISE AGREEMENT
| CFO," | "Franchisor," | "Company", | "us", | "we" | or | "our"), | and |
|---|---|---|---|---|---|---|---|
| ("Franchisee," "you" or "your") as an Area | |||||||
| President. |
-
- 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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, an addendum to the Franchise Agreement is required for franchisees in Maryland because of specific legal considerations related to franchising in that state. The addendum addresses several key areas to ensure compliance with the Maryland Franchise Registration and Disclosure Law. This includes modifications to provisions regarding governing law, jurisdiction, limitation of claims, and releases.
Specifically, the addendum clarifies that franchisees may bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any clauses in the standard agreement that might suggest otherwise. It also ensures that any claims under this law can be brought within three years of the Franchise Agreement date, overriding any shorter limitations periods in the original agreement. Furthermore, the addendum stipulates that no releases or waivers signed by the franchisee will waive liability under the Maryland Franchise Registration and Disclosure Law.
Additionally, the Maryland Securities Commissioner has mandated a financial assurance due to Focus Cfo's financial condition. As a result, all initial fees and payments owed by franchisees in Maryland are deferred until Focus Cfo has fulfilled its pre-opening obligations as outlined in the franchise agreement. This measure provides an added layer of protection for franchisees, ensuring that they are not required to pay initial fees before Focus Cfo has met its contractual obligations. The FDD explicitly states that "THE MARYLAND NOTICE APPLIES ONLY TO FRANCHISEES WHO ARE RESIDENTS OF MARYLAND OR LOCATE THEIR FRANCHISES IN MARYLAND."
In summary, the addendum serves to align the Focus Cfo Franchise Agreement with the specific requirements and protections afforded by Maryland franchise law, as well as to address financial assurance requirements set by the Maryland Securities Commissioner. This ensures that Focus Cfo franchisees in Maryland receive the full benefits and protections under state law, while also deferring initial fees until pre-opening obligations are met.