What is the condition for Focus CFO to transfer the agreement without franchisee consent?

According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO has the right to transfer the Franchise Agreement to any successor business entity without needing prior notice or consent from the franchisee. This condition applies specifically if Focus CFO is acquired, whether through the purchase of assets, ownership interests, or any other form of transaction.

This clause means that if Focus CFO is bought out or merges with another company, the new entity automatically assumes all rights and responsibilities under the existing franchise agreements. The franchisee has no say in this transfer and will be bound by the terms of the agreement with the new entity. This is a fairly standard practice in franchising, as it allows the franchisor to maintain business continuity in the event of a sale or merger.

However, the 2025 FDD also states that if the successor business entity decides to stop offering franchises, it has the right to terminate the Franchise Agreement. This presents a potential risk for the franchisee. While the franchisee is assured that the agreement will continue if the new entity continues franchising, there is no guarantee of this. The franchisee could find their agreement terminated if the new owners decide to exit the franchise business, potentially losing their investment and future income.

Prospective Focus Cfo franchisees should consider this possibility and evaluate the likelihood of Focus CFO being acquired. It would be prudent to inquire about Focus CFO's long-term plans and stability to assess the risk associated with this transfer clause. Understanding the potential for a change in ownership and the subsequent right of the new entity to terminate the agreement is crucial for making an informed investment decision.