What is the definition of 'Cause' for termination of the Focus Cfo franchise agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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, "Cause" for termination by Focus Cfo includes specific instances of franchisee misconduct or failure to meet obligations. Focus Cfo can terminate the agreement immediately by providing written notice that specifies the reasons for the termination.
The definition of "Cause" includes scenarios where the franchisee becomes insolvent, files for bankruptcy, or makes an assignment for the benefit of creditors. It also covers actions or inaction that defames or disparages Focus Cfo, engaging in dishonesty, misrepresentation, material neglect of duty, or willful misconduct related to the franchisee's responsibilities. Furthermore, 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 considered cause for termination.
Unauthorized use of Focus Cfo's marks or confidential information, involvement in fraudulent activities, embezzlement, or any crime that could harm Focus Cfo's reputation also constitute cause. Additionally, being charged with or indicted for a felony, or convicted of a misdemeanor involving moral turpitude, or failing to comply with applicable federal, state, or local regulations or laws relating to the franchise, CFO services, or Focus Cfo's business can lead to termination.
This broad definition of "Cause" means a Focus Cfo franchisee must be diligent in adhering to all legal and ethical standards, as well as maintaining the integrity of the Focus Cfo brand and system. Failure to do so could result in immediate termination of the franchise agreement and the loss of the franchise fee, as Focus CFO will not refund the Franchise Fee if the agreement is terminated for cause.