What constitutes 'good cause' for Focus Cfo to terminate a franchise agreement in Michigan?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause.
For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages 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) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is 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 Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo can terminate the franchise agreement immediately for cause with written notice to the franchisee, specifying the reasons. The definition of "Cause" includes several scenarios. These include the franchisee becoming insolvent, filing for bankruptcy, or making an assignment for the benefit of creditors.
Other actions that constitute cause for termination by Focus Cfo include any action or inaction by the franchisee that defames or disparages Focus Cfo, or any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct related to the franchisee's responsibilities. Engaging in behavior that causes physical, mental, or emotional harm to an individual or property, or any coercive, threatening, abusive, exploitive, or harassing behavior is also considered cause.
Furthermore, unauthorized use of Focus Cfo's marks or confidential information, engaging in or being accused of fraud, embezzlement, or other crimes that could affect Focus Cfo's reputation, or failing to comply with applicable federal, state, or local regulations or laws relating to the franchise or CFO services also constitute cause for termination. It is important for a prospective franchisee to understand these conditions, as termination for cause will result in the franchisee not receiving a refund of their franchise fee.