Can Focus Cfo authorize a franchisee in writing to compete after termination?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
top offering franchises, the successor entity has the right to terminate this Agreement.
13. NON-COMPETE AND NON-SOLICITATION
13.1. Non-Compete During Term. During the Term of this Agreement and any successor terms, unless authorized in writing by Focus CFO, Franchisee shall not advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party. Franchisee is, however, free to be involved in other business
- activities, provided Franchisee is able to fully satisfy the Performance Standards required by this Agreement and is in compliance with Attachment E to the Franchise Agreement.
- 13.2. Post-Termination Non-Compete.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo can authorize a franchisee in writing to compete with them both during the term of the agreement and after termination. Specifically, during the term of the agreement, the franchisee cannot provide services that compete with Focus Cfo's business unless Focus Cfo authorizes it in writing.
After the agreement ends either through expiration or early termination, the franchisee is restricted from offering competitive services within their Home Territory or any Secondary Territory for two years. They are also prohibited from soliciting Focus Cfo clients they previously served, regardless of location. However, these post-termination restrictions do not apply if Focus Cfo provides written authorization allowing the franchisee to compete.
This clause provides Focus Cfo with the flexibility to release a franchisee from non-compete obligations, which could be beneficial in certain circumstances. For example, if a franchisee's territory is not performing well or if Focus Cfo decides to exit a particular market, they might allow the franchisee to continue operating a similar business without legal repercussions. However, it's important to note that Focus Cfo's decision to grant such authorization is entirely at their discretion.