What constitutes negligence in the performance of duties for a Focus Cfo franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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;
10.5.
Franchisee Indemnification.
Franchisee and Equity Owner shall hold harmless, defend and indemnify Focus CFO, any affiliate of Focus CFO, all employees, officers, directors, managers, members, franchisees, licensees, successors and assigns of Focus CFO and Focus CFO affiliates (collectively "Focus CFO Indemnitees") from and against all losses, damages, fines, costs, expenses or liabilities (including reasonable attorneys' fees, costs of investigation, expert fees and disbursements and all other costs of investigation, arbitration and/or litigation, court costs, settlement amounts, judgments, and compensation for damages to Focus CFO's reputation and goodwill) incurred in connection with any action, suit, demand, claim, investigation or proceeding, or any settlement thereof, which arises from or is based upon Franchisee's: (i) violation, breach or asserted violation of any federal, state or local law, regulation or rule; (ii) the commission of an act or omission involving a felony or involving fraud, embezzlement or other criminal conduct; (iii) material breach of any representation, warranty, covenant or provision of this Agreement or any other agreement between Franchisee and Focus CFO; (iv) gross negligence or intentional acts, especially related to work performed for a Focus CFO client, (v) infringement or alleged infringement, of a third party's patent, copyright, trademark, tradename, trade secrets or other intellectual property or the misuse or disclosure of third party confidential information or (vi) any behavior causing physical 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.
Focus CFO shall have the right to hold Franchisee solely liable and responsible for any breach of this Agreement caused by the failure by any Support Resource of Franchisee to follow the Focus CFO System.
(iv) Franchisee failed to perform, or was negligent in the performance of, the duties imposed on Franchisee by Focus CFO;
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, negligence in the performance of duties is a critical factor in evaluating a franchisee's adherence to the franchise agreement. Specifically, franchisees must not be negligent in performing their duties as outlined in the Franchise Agreement or any Focus Cfo client arrangement. This standard is part of the Franchisee Performance Standards, and failure to meet it can lead to termination of the agreement if the franchisee fails to correct the issue within thirty days of notice from Focus Cfo, or if they accumulate three violations of any performance standards.
Furthermore, Focus Cfo has the right to terminate the Franchise Agreement if the franchisee fails to perform or was negligent in performing their duties. This includes adhering to Focus Cfo's policies and directives, as well as those of their clients. The agreement emphasizes that Focus Cfo can hold franchisees liable for breaches caused by their support resources if they fail to follow the Focus Cfo system.
Additionally, franchisees are obligated to indemnify Focus Cfo against losses, damages, and liabilities arising from their gross negligence or intentional acts, especially those related to work performed for a Focus Cfo client. This indemnification clause highlights the importance of franchisees maintaining appropriate insurance coverage and adhering to Focus Cfo's policies and procedures to mitigate potential legal claims. Franchisees must also certify their compliance with these policies annually and disclose any known circumstances that could lead to a legal claim against Focus Cfo.