Does Focus Cfo have different termination rights if the franchisee is an Area President?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
shall mean to sell, convey or otherwise dispose of franchisee's Book of Business | | l. Focus CFO's approval of transfer by Franchisee | Section 12.1 | Area Presidents are permitted to transfer their franchise to another Area President under certain conditions. | | Provision | Agreement | Summary | |---------------------------------------------------------------------|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | m. Conditions for Focus CFO approval of assignment | Section 12.1 | (i) Focus CFO provides consent in writing to the transfer; (ii) Area President who desires to transfer their franchise ("Transferring Area President") has been a Franchisee for at least two (2) years and developed a Book of Business of at least $500,000 of collected (cash basis) revenue during the twelve (12) months preceding the desired transfer; (iii) Transferring Area President has identified another individual who is either an existing Focus CFO Franchisee prior to the transfer and not in breach of his or her Franchise Agreement or is willing to enter into the then current Franchise Agreement; (iv) Transferring Area President provides at least 90 days' written notice of Transfer to Focus CFO if the Transfer is to an existing Franchisee and at least 120 days' notice if to a new Franchisee; (v) Transferring Area President and Recipient Area President shall provide Focus CFO a summary of all the material terms and conditions upon which the Transfer is to be made; (v) Transferring Area President executes a general release. Transferring Area President's Franchise Agreement automatically terminates twelve (12) months from the date of tran
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, Area Presidents have specific conditions related to the transfer of their franchise, which impacts termination. An Area President is permitted to transfer their franchise to another Area President under certain conditions. If an Area President desires to transfer their franchise, they must have been a franchisee for at least two years and developed a Book of Business of at least $500,000 of collected revenue during the twelve months preceding the desired transfer.
Additionally, the Transferring Area President must identify another individual who is either an existing Focus Cfo franchisee (not in breach of their agreement) or is willing to enter into the current Franchise Agreement. The Transferring Area President must provide at least 90 days' written notice to Focus Cfo if the transfer is to an existing franchisee, and at least 120 days' notice if it is to a new franchisee. Both the Transferring Area President and the Recipient Area President must provide Focus Cfo with a summary of all material terms and conditions of the transfer, and the Transferring Area President must execute a general release.
The Franchise Agreement of the Transferring Area President automatically terminates twelve months from the date of transfer, if not terminated earlier by the Transferring Area President. Focus Cfo's approval of the transfer is required in writing. These conditions outline a specific scenario where an Area President's franchise agreement is terminated in relation to a transfer, which is a different process than standard termination rights.
These stipulations provide a framework for Area Presidents looking to transition out of their franchise while ensuring continuity and compliance within the Focus Cfo system. It is important for prospective franchisees to understand these conditions, as they add a layer of complexity to the standard termination clauses.