From what assets will any indemnification required by Focus Cfo be recoverable?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.3.
Indemnification.
Focus CFO will indemnify Franchisee for judgments, settlements, penalties, fines or expenses incurred in a proceeding to which Franchisee is a party because Franchisee is or was serving as an Area President of Focus CFO, unless the underlying claim is a result or related to an Adverse Event as defined below.
Any indemnification required or authorized under this Section will be recoverable only out of the assets of Focus CFO.
No Focus CFO affiliate will have any liability with respect thereto.
No member, director, manager, officer, franchisee or licensee of Focus CFO or any Focus CFO affiliate will have any personal liability with respect thereto.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, any indemnification required or authorized under Section 10.3 will be recoverable only from the assets of Focus CFO. This means that if a franchisee is entitled to indemnification from Focus CFO, the franchisee can only recover from the assets owned by Focus CFO itself.
The FDD explicitly states that no Focus CFO affiliate will have any liability with respect to indemnification. Additionally, no member, director, manager, officer, franchisee, or licensee of Focus CFO or any Focus CFO affiliate will have any personal liability regarding indemnification.
This provision clarifies that the franchisee's recourse for indemnification is limited solely to the assets of the Focus CFO entity, shielding related parties and individuals from personal liability. Prospective franchisees should understand this limitation and consider its implications when evaluating the financial security of the franchise agreement.