Who determines if an Adverse Event has occurred with respect to a Focus Cfo franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this Agreement, an Adverse Event is deemed to have occurred if Focus CFO determines, in its sole discretion after its review of the surrounding facts and circumstances, that one or more of the following circumstances or events applies or has occurred with respect to Franchisee: (i) Franchisee committed an act or omission constituting a felony or involving fraud, embezzlement or other
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO has the sole discretion to determine if an Adverse Event has occurred with respect to a franchisee. This determination is made after Focus CFO reviews the surrounding facts and circumstances.
An Adverse Event is defined as one or more specific circumstances or events applying or occurring with respect to the franchisee. These circumstances include the franchisee committing a felony or an act involving fraud or embezzlement.
This clause is important because if an Adverse Event is determined to have occurred, Focus CFO will not indemnify the franchisee for any judgments, settlements, penalties, fines, or expenses incurred in a legal proceeding. This places the financial burden of legal claims stemming from such events solely on the franchisee. Prospective franchisees should carefully consider the implications of this provision and seek legal counsel to understand their potential liabilities.