What are some examples of acts or omissions that would constitute an Adverse Event for 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
criminal conduct;(ii) Franchisee failed to perform or observe any obligation or condition to be performed or observed by Franchisee under this Agreement or any other agreement with Focus CFO or a Focus CFO affiliate or the Professional Services Agreement with a Focus CFO client; (iii) Franchisee engaged in any act of dishonesty, misrepresentation, material neglect of duty, or any other act that is materially harmful to Focus CFO; (iv) Franchisee failed to perform, or was negligent in the performance of, the duties imposed on Franchisee by Focus CFO; (v) Franchisee failed to follow the policies or directives of Focus CFO or a Focus CFO client, as such policies or directives are established from time to time; or (vi) Franchisee engaged in any behavior that caused physical 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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, an Adverse Event occurs if Focus CFO determines, after reviewing the facts, that certain circumstances apply to the franchisee. These circumstances include the franchisee committing an act or omission constituting a felony or involving fraud, embezzlement, or other criminal conduct.
Additionally, an Adverse Event can occur if the Focus Cfo franchisee fails to perform their obligations under the Franchise Agreement, any other agreement with Focus CFO or its affiliates, or the Professional Services Agreement with a Focus CFO client. Engaging in dishonesty, misrepresentation, material neglect of duty, or any other act materially harmful to Focus CFO also constitutes an Adverse Event. Furthermore, failing to perform duties, acting negligently, or not following Focus CFO's or a client's policies or directives can trigger an Adverse Event.
Finally, engaging in behavior that causes physical harm to an individual or property, or any coercive, threatening, abusive, exploitive, or harassing behavior, including sexual harassment, or any other inappropriate conduct in a workplace or professional environment, can also be classified as an Adverse Event. It is important for prospective franchisees to understand these definitions, as an Adverse Event can have significant consequences, potentially affecting indemnification and other contractual obligations.