factual

Does the Virginia notice in the Focus Cfo FDD supersede other terms in the franchise agreement?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. 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.

THE VIRGINIA NOTICE APPLIES ONLY TO FRANCHISEES WHO ARE RESIDENTS OF VIRGINIA OR LOCATE THEIR FRANCHISES IN VIRGINIA.

Source: Item 23 — Receipts (FDD pages 37–126)

What This Means (2025 FDD)

According to Focus Cfo's 2025 Franchise Disclosure Document, the Virginia notice includes a provision that supersedes other terms in the franchise agreement. Specifically, the notice states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Focus Cfo or its representatives.

This provision explicitly overrides any other term in any document related to the franchise. This means that Focus Cfo franchisees in Virginia are protected from unknowingly waiving their rights or disclaiming reliance on the franchisor's statements through standard documents signed during the franchise commencement. This protection is particularly relevant to claims of fraud in the inducement, ensuring franchisees can pursue such claims despite any conflicting language in other agreements.

This type of clause is designed to protect franchisees by ensuring they cannot inadvertently give up their legal rights through standardized paperwork. It reflects a regulatory effort to balance the power dynamic between franchisors and franchisees, especially in states with franchise-specific laws like Virginia. However, the Virginia notice applies only to franchisees who are residents of Virginia or locate their franchises in Virginia.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.