How is 'cause' defined for termination of a Focus Cfo franchise agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
a default, your interest in the franchise will terminate. | | CFO with cause | | | | g. "Cause" defined - | Section 11.3 | You breach any provision of the Franchise Agreement or any other agreement with Focus CFO or any Focus CFO affiliate and you fail to cure the breach within thirty (30) days. You fail to meet Focus CFO's Performance Standards and such failure continues after receiving thirty (30) days' notice from Focus CFO of such failure to meet the standard, or you accumulate three (3) violations of any individual or combination of the standards, which include: (i) you must comply with Focus CFO's policies as outlined in the Playbook; (ii) you must participate in, or attend, at least 75% of the total required training sessions held by Focus CFO; | | defaults which can be | | | | cured | | | | Provision | Section in Franchise Agreement | Summary | |--------------------------------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | (iii) you must consistently demonstrate, follow, | | | | and abide by, the Company's Core Values as | | | | outlined on Focus CFO's website and in the | | | | Playbook; (iv) you must regularly collaborate | | | | with other Area Presidents and CFOs in your | | | | territory; (v) you must demonstrate an ability to | | | | follow | | | | the | | | | Company's | | | | core | | | | processes | | | | and | | | | procedures related to business development, new | | | | client acquisition, ongoing client support and | | | | client retention; (vi) you must not be negligent in | | | | the performance of the duties as outlined in the | | | | Franchise Agreement or as a result of any Focus | | | | CFO client arrangement; (vii) you must follow | | | | the policies or directives of Focus CFO, any | | | | Focus CFO affiliate or a Focus CFO client, as | | | | such policies or directives are established from | | h. "Cause" defined - defaults which cannot be cured | Section 11.2, 12.1.6 | time to time after written notice by Focus CFO. (i) You become insolvent; (ii) You file a petition in bankruptcy; (iii) You make an assignment for the benefit of your creditors; (iv) You take action or inaction that defames or disparages Focus CFO; (v) You engage in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of your duties or responsibilities required pursuant to the franchise agreement; (vi) you engage in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) you make any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) you engage in or are accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or you are charged with or indicted for a felony, or |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| convicted of a misdemeanor offense involving moral turpitude; (ix) you fail to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business. With respect to a Transfer of the Franchisee's Book of Business, the Franchise Agreement will immediately terminate twelve (12) months from the date of transfer if not terminated earlier. Focus CFO is not required to give you prior notice or the right to cure for these events. | ||
| i. Your obligations on termination/non-renewal | Sections 11, 13, 15 | Return of all information, including confidential and proprietary information, including without limitation that related to our clients, potential clients, standard documents or templates, bulk marketing materials, policies or procedures, clients or contacts, including original materials, photocopies, databases, computer files that you receive either from Focus CFO, directly or indirectly, including from our service providers, or from our clients or prospective clients. Comply with non-solicitation and non-compete clauses. Not use or disclose Focus CFO confidential information. |
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, 'cause' for termination is defined in two categories: defaults that can be cured and defaults that cannot be cured.
For defaults that can be cured, Focus Cfo may terminate the Franchise Agreement if the franchisee breaches any provision of the Franchise Agreement or any other agreement with Focus Cfo or any Focus Cfo affiliate, and fails to cure the breach within thirty (30) days. Termination can also occur if a franchisee fails to meet Focus Cfo's Performance Standards after receiving thirty (30) days' notice, or accumulates three (3) violations of any combination of performance standards. These standards include compliance with Focus Cfo's policies in the Playbook, participating in at least 75% of required training sessions, consistently demonstrating the Company's Core Values, regularly collaborating with other Area Presidents and CFOs, following core processes related to business development, not being negligent in duty performance, and following policies of Focus Cfo or its clients.
For defaults that cannot be cured, Focus Cfo can terminate the agreement without prior notice or opportunity to cure under several conditions. These include: becoming insolvent, filing for bankruptcy, making an assignment for the benefit of creditors, defaming or disparaging Focus Cfo, engaging in dishonesty or willful misconduct, causing harm to individuals or property, making unauthorized use of Focus Cfo Marks or confidential information, engaging in acts involving fraud or embezzlement, being charged with a felony, or failing to comply with applicable regulations or laws. Additionally, the Franchise Agreement will immediately terminate twelve (12) months from the date of transfer if the Franchisee's Book of Business is transferred.