Besides the Franchisee, who else is bound to the terms of the Focus CFO Franchise Agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
nsibility for all Support Resources Franchisee hires and shall comply with all federal, state and local employment laws and regulations. Franchisee shall require each Support Resource to execute a confidentiality, non-solicitation and non-competition agreement whereby the Support Resource acknowledges being bound to the same covenants as the Equity Owner of the Franchise under the terms of this Agreement. The Franchisee will provide a copy of this executed agreement to Focus CFO within ten (10) business days of Franchisee hiring the Support Resource. Franchisee agrees that Focus CFO is not the employer for any Support Resource Franchisee hires. Franchisee shall ensure that all Support Resources understand that they are employees of Franchisee and have no relationship, employment or otherwise, with Franchisor. All management, personnel and training requirements are at Franchisee's discretion and are Franchisee's sole responsibility.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, in addition to the franchisee, Support Resources hired by the franchisee are also bound to certain terms of the Franchise Agreement. Specifically, Focus Cfo requires the franchisee to ensure that each Support Resource signs a confidentiality, non-solicitation, and non-competition agreement. This agreement legally binds the Support Resource to the same covenants as the Equity Owner of the franchise, as outlined in the Franchise Agreement.
The franchisee is responsible for providing Focus Cfo with a copy of the executed agreement within ten business days of hiring the Support Resource. This requirement ensures that Focus Cfo has documentation confirming the Support Resource's commitment to these key obligations. Focus Cfo also clarifies that it is not the employer of the Support Resource; instead, the Support Resource is an employee of the franchisee, with no employment relationship with Focus Cfo.
Focus Cfo emphasizes that the franchisee is solely responsible and liable for any breach of the Franchise Agreement caused by a Support Resource's failure to adhere to the Focus Cfo System. This underscores the importance of the franchisee's role in managing and training Support Resources to ensure they comply with Focus Cfo's standards and procedures. This requirement protects Focus Cfo's brand and operational integrity, as the actions of the Support Resources directly reflect on the Focus Cfo System.
This arrangement is fairly common in franchising, where franchisors seek to protect their brand, trade secrets, and customer relationships. By extending key obligations to Support Resources, Focus Cfo aims to maintain consistency and quality across its franchise network. Prospective franchisees should carefully review these requirements and ensure they have processes in place to manage Support Resources effectively and enforce these agreements.