What are the consequences of accumulating three violations of Focus Cfo's performance standards?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
ould read these provisions in the agreements attached to this Disclosure Document.
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 2.1 | Term is 10 years. |
| b. Renewal or extension | Section 2.2 | If, upon expiration of the Initial Term of the |
| of the term | franchise, you are still performing as an Area | |
| Provision | Section in Franchise Agreement | Summary |
| Agreement | President then you shall have the right to renew the franchise if certain conditions are met. | |
| c. Requirements for you to | Section 2.3 | (i) subject to state law, you execute general releases in a form similar to that in Exhibit G; (ii) you have complied with all provisions of the Franchise Agreement; (iii) you have satisfied all Performance Standards as set forth in Attachment E to the Franchise Agreement; (iv) you are not in default of any provisions of the Franchise Agreement or any other agreement between Franchisee and Focus CFO; and (v) we reserve the right to have you sign a new Franchise Agreement which may have terms that are materially different and may require additional training and certification requirements. A renewal fee of $2,500 is required to be paid by you to renew your franchise. |
| renew or extend | ||
| d. Termination by you | Section 11.1 | If you decide to terminate the Franchise Agreement, you will give at least sixty (60) days' notice prior to such termination. |
| e. Termination by Focus | None | Focus CFO does not have the right to terminate without cause. |
| CFO without cause | ||
| f. Termination by Focus | Section 11.2, 11.3 | We may terminate the Franchise Agreement if you default. If we terminate the Franchise Agreement following 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 |
| -------------------------------------------------------------- | ----------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
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, accumulating three violations of the company's performance standards can lead to the termination of the Franchise Agreement. The FDD specifies that Focus Cfo may terminate the Franchise Agreement if a franchisee fails to meet the company's performance standards, and this failure continues after receiving 30 days' notice from Focus Cfo. The accumulation of three violations of any individual or combination of the standards also constitutes grounds for termination. If Focus Cfo terminates the Franchise Agreement following a default, the franchisee's interest in the franchise will terminate.
The performance standards that Focus Cfo franchisees must adhere to include complying with Focus Cfo's policies as outlined in the Playbook, participating in at least 75% of the required training sessions, consistently demonstrating and abiding by the company's core values, regularly collaborating with other Area Presidents and CFOs in their territory, demonstrating an ability to follow the company's core processes and procedures, avoiding negligence in the performance of duties, and following the policies or directives of Focus Cfo or its affiliates or clients.
This means that prospective Focus Cfo franchisees need to understand and diligently meet all performance standards to avoid potential termination of their franchise agreement. The consequences of termination include losing the right to operate the franchise and potentially losing any investment made in the business. Franchisees should pay close attention to the standards outlined in the Playbook and Franchise Agreement, attend required training, and maintain open communication with Focus Cfo to ensure compliance and address any potential issues promptly.