Does the data on Focus Cfo franchise transfers include franchisees who ceased business or terminated their agreements?

According to Focus Cfo's 2025 Franchise Disclosure Document, the data on franchise transfers specifically excludes franchisees who ceased business or terminated their agreements. The FDD states that no franchise agreements were transferred to a new franchisee for any franchisee who ceased to do business and/or terminated their franchise agreements during the years 2022 through 2024. This means that the transfer data only reflects instances where a franchise was sold to a new owner while the original franchisee was still in good standing, not when a franchise was closed or terminated.

This distinction is important for prospective franchisees because it provides a clearer picture of successful franchise transitions versus closures. A high number of transfers could indicate a healthy market for reselling franchises, but it does not reflect the overall health of the franchise system. The closure rate, on the other hand, might point to underlying issues with the business model or market conditions.

Therefore, when evaluating the transfer data, a potential Focus Cfo franchisee should also consider other factors such as the number of terminations and non-renewals to get a comprehensive understanding of franchisee turnover. This information, combined with conversations with current and former franchisees, can provide a more balanced view of the franchise's stability and potential for success.