What constitutes 'cause' for termination of the Focus Cfo Franchise Agreement?
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 |
| -------------------------------------------------------------- | ----------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| (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; |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo can terminate the Franchise Agreement with cause if the franchisee defaults. These defaults are divided into those that can be cured with notice and those that cannot.
Cureable defaults include breaching any agreement with Focus Cfo or its affiliates and failing to fix the breach within 30 days. It also includes failing to meet Focus Cfo's performance standards after 30 days' notice, or accumulating three violations of performance standards. These standards relate to compliance with Focus Cfo's policies in the Playbook, attending 75% of required training sessions, demonstrating the company's core values, collaborating with other Area Presidents and CFOs, following core processes for business development, avoiding negligence in duties, and following Focus Cfo's policies or directives.
Non-cureable defaults include insolvency, filing for bankruptcy, making an assignment for the benefit of creditors, defaming Focus Cfo, engaging in dishonesty or misconduct, causing harm to individuals or property, unauthorized use of Focus Cfo's marks or confidential information, committing fraud or embezzlement, being charged with a felony, or failing to comply with applicable regulations. Focus Cfo is not required to provide prior notice or an opportunity to cure for these events. Additionally, if a franchisee transfers their book of business, the Franchise Agreement will automatically terminate 12 months from the transfer date if not terminated earlier.