factual

What is the effect of termination on the Focus Cfo franchisee's non-disparagement obligations?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — Receipts (FDD pages 37–126)

What This Means (2025 FDD)

According to the 2025 Focus Cfo Franchise Disclosure Document, the franchisee's obligation not to disparage Focus Cfo continues even after the termination of the Franchise Agreement. Specifically, the franchisee agrees that, both during the term of the agreement and at any time following its termination for any reason, they will not disparage Focus Cfo, the Focus Cfo System, or any of its officers, employees, licensees, or franchisees. This restriction extends to any business practice employed by Focus Cfo or its related parties.

This non-disparagement obligation applies regardless of the reason for termination, meaning that even if Focus Cfo terminates the agreement, the franchisee is still bound by this clause. The FDD specifies that disparagement is prohibited through any means of communication, including the Internet, blog posts, reviews, or social media platforms. This broad language suggests that any negative or critical statements made by the franchisee, regardless of the medium, could be a breach of the agreement.

Focus Cfo emphasizes the importance of this clause by stating that the restrictive covenants, including the non-disparagement provision, are essential elements of the agreement. The document further states that Focus Cfo would not have entered into the agreement without these protections. Franchisees also acknowledge that these terms are fair and reasonably required to protect Focus Cfo, its system, and its marks, and they waive any right to challenge these restrictions as overly broad or unenforceable. This indicates that Focus Cfo places a high value on maintaining its reputation and brand image, and it seeks to prevent former franchisees from making negative statements that could harm the business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.