What is the effect of the non-disparagement clause on Focus Cfo franchisees who use social media?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
subject to future increases. Focus CFO's right to these damages is cumulative with all other available remedies under this Agreement.
- 13.5. Non-Disparagement. Franchisee hereby agrees that he or she will not, either during the term of this Agreement or at any time following the termination hereof for any reason, disparage Focus CFO, the System or any officer, employee, licensee or franchisee of Focus CFO, or any business practice employed by Focus CFO or any officer, employee, licensee or franchisee thereof through any means of communication, including but not limited to the Internet, blog posts, reviews or social media platforms.
- 13.6. If any provision of this Section 13, as applied to any party or to any circumstances, is adjudged by a court to be invalid or unenforceable, the same will in no way affect any other provision of this Section 13 or any other part of this Agreement, the application of such provision in any other circumstances, or the validity or enforceability of this Agreement.
- 13.7. Franchisee acknowledges that the restrictive covenants contained in this Section 13 are essential elements of this Agreement and that without their inclusion Focus CFO would not have entered into this Agreement. Franchisee acknowledges that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Focus CFO, the Focus CFO System and the Focus CFO Marks and Franchisee waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, franchisees are restricted from making disparaging remarks about Focus Cfo, the Focus Cfo system, or any of its officers, employees, licensees, or franchisees. This restriction applies both during the term of the Franchise Agreement and after its termination, regardless of the reason for termination. The non-disparagement clause specifically includes any means of communication, such as the Internet, blog posts, reviews, and social media platforms. This means a Focus Cfo franchisee must be careful about what they post online regarding the franchise.
Focus Cfo also has specific policies regarding social media and networking. Franchisees must comply with Focus Cfo's Social Media Policy when posting on social media sites and must remove any online content that Focus Cfo deems to be in violation of the policy within 24 hours of being requested to do so. Focus Cfo retains the right to modify and amend this Social Media Policy. Furthermore, franchisees must obtain prior written approval from Focus Cfo before creating any social networking account that uses the Focus Cfo Marks or promotes Focus Cfo services, excluding the franchisee's personal accounts. Focus Cfo has the sole discretion to determine what content should be removed from these social network accounts.
These provisions mean that Focus Cfo franchisees need to be aware of the content they post online, ensuring it aligns with the brand's standards and policies. Failure to comply with these requirements could lead to breaches of the Franchise Agreement. The restrictions are designed to protect Focus Cfo's reputation and brand image, which is a common practice in franchising to maintain consistency and goodwill across the entire franchise system. Prospective franchisees should carefully review the Social Media Policy and understand the implications of the non-disparagement clause before entering into an agreement with Focus Cfo.