Can Focus Cfo authorize a franchisee in writing to solicit clients or employees after termination?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3.
Non-Solicitation.
Franchisee acknowledges that all clients and prospective clients of Focus CFO (the "Customers") and all CFOs and Area Presidents, whether or not such Customers or CFOs and Area Presidents are obtained or retained through Franchisee's efforts, shall be the Customers, Franchisees, Licensees and independent contractors of Focus CFO.
Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
- 13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus Cfo can authorize a franchisee in writing to solicit clients or employees after the termination of the Franchise Agreement. Specifically, the FDD states that for a period of two years following the expiration or early termination of the agreement, the franchisee is prohibited from soliciting Focus Cfo's customers, franchisees, licensees, and independent contractors unless Focus Cfo provides written authorization. This restriction applies to both direct and indirect solicitation efforts.
This means that a former Focus Cfo franchisee is generally restricted from recruiting Focus Cfo's clients or personnel for a period of two years after the franchise agreement ends. However, Focus Cfo retains the discretion to waive this restriction and allow a former franchisee to solicit clients or employees, provided that such authorization is given in writing. This provides Focus Cfo with flexibility in managing its relationships with former franchisees and protecting its business interests.
For a prospective franchisee, this clause highlights the importance of maintaining a positive relationship with Focus Cfo. While the standard agreement imposes a non-solicitation period, the possibility of obtaining written authorization from Focus Cfo to solicit clients or employees after termination could be a valuable asset, especially if the franchisee plans to continue operating a similar business after leaving the Focus Cfo system. It is important to note that Focus Cfo is not obligated to provide this written authorization, and it would likely depend on the specific circumstances of the termination and the franchisee's conduct during and after the franchise agreement.