Does Focus Cfo define 'cause' for termination as breaching any agreement with a Focus CFO affiliate?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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; (vii) you make any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO;
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, Focus CFO can terminate the franchise agreement if the franchisee breaches any agreement with Focus CFO or any of its affiliates. The franchisee has 30 days to cure the breach to avoid termination. This is a fairly standard clause in franchise agreements, as franchisors want to ensure that franchisees adhere to all agreements to protect the brand and maintain consistency.
In addition to breaching agreements, Focus CFO can also terminate the franchise agreement if the franchisee fails to meet Focus CFO's performance standards. If the franchisee receives notice of failing to meet these standards, they have 30 days to correct the failure. Accumulating three violations of any combination of performance standards also constitutes grounds for termination. These performance standards include complying with Focus CFO's policies in the Playbook, participating in at least 75% of required training sessions, consistently demonstrating the company's core values, regularly collaborating with other Area Presidents and CFOs, following core processes for business development and client support, avoiding negligence in duty performance, and following policies of Focus CFO, its affiliates, or clients.
Focus CFO also lists defaults that cannot be cured, leading to immediate termination without prior notice or opportunity to cure. These include insolvency, bankruptcy filings, assigning assets for creditors' benefit, 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. These 'no cure' defaults are more severe and reflect actions that pose significant risk to the Focus CFO brand or business.