Does Focus Cfo have to approve a transfer of the franchisee's Book of Business?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------------------------------------------------------------| | m. Conditions for Focus CFO approval of assignment | Section 12.1 | (i) Focus CFO provides consent in writing to the transfer; (ii) Area President who desires to transfer their franchise ("Transferring Area President") has been a Franchisee for at least two (2) years and developed a Book of Business of at least $500,000 of collected (cash basis) revenue during the twelve (12) months preceding the desired transfer; (iii) Transferring Area President has identified another individual who is either an existing Focus CFO Franchisee prior to the transfer and not in breach of his or her Franchise Agreement or is willing to enter into the then current Franchise Agreement; (iv) Transferring Area President provides at least 90 days' written notice of Transfer to Focus CFO if the Transfer is to an existing Franchisee and at least 120 days' notice if to a new Franchisee; (v) Transferring Area President and Recipient Area President shall provide Focus CFO a summary of all the material terms and conditions upon which the Transfer is to be made; (v) Transferring Area President executes a general release. Transferring Area President's Franchise Agreement automatically terminates twelve (12) months from the date of transf
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus Cfo's approval is required for a franchisee to transfer their Book of Business. Specifically, Section 12.1 of the Franchise Agreement outlines the conditions under which Focus Cfo must provide consent in writing for such a transfer. This requirement ensures that Focus Cfo maintains control over who joins their franchise system and that certain standards are met before a transfer can occur.
Several conditions must be met for Focus Cfo to approve the transfer. First, Focus Cfo must provide written consent. Second, the Area President seeking to transfer their franchise must have been a franchisee for at least two years and have developed a Book of Business generating at least $500,000 in collected revenue during the 12 months preceding the desired transfer. Third, the transferring Area President must identify a suitable recipient, either an existing Focus Cfo franchisee in good standing or someone willing to enter into the current Franchise Agreement.
Additionally, the transferring Area President must provide Focus Cfo with written notice of the transfer. The notice period is 90 days if the transfer is to an existing franchisee and 120 days if it is to a new franchisee. Both the transferring and recipient Area Presidents must provide Focus Cfo with a summary of all material terms and conditions of the transfer. Finally, the transferring Area President must execute a general release. The Franchise Agreement of the transferring Area President automatically terminates twelve months from the transfer date, unless terminated earlier by the transferring Area President.
These conditions are fairly typical in franchising, as franchisors want to ensure that any transfer of a franchise meets their standards and protects the brand. Prospective Focus Cfo franchisees should carefully review Section 12.1 of the Franchise Agreement to fully understand the requirements and implications of transferring their Book of Business.