Where can I find the definition of 'Cause' within the Focus Cfo Franchise Agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Cause" has the meaning set forth in Section 11.2;
11.2.
Termination by Franchisor for Cause.
Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause.
For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages in any behavior that caused physical, mental or emotional 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; (vii) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the definition of "Cause" can be found in two places. Attachment A to the Franchise Agreement, under the Definition of Key Terms, states that "Cause" has the meaning set forth in Section 11.2.
Section 11.2 further elaborates on the definition of "Cause" in the context of termination by Focus CFO. It specifies that Focus CFO has the right to terminate the agreement immediately upon written notice to the franchisee, detailing the circumstances that constitute cause.
The document lists nine specific conditions that define "Cause", including insolvency, bankruptcy, actions that defame Focus CFO, dishonesty, misconduct, behavior causing harm, unauthorized use of Focus CFO Marks or confidential information, involvement in fraudulent activities, or failure to comply with applicable regulations. This comprehensive definition provides clarity to the franchisee regarding the grounds for immediate termination by Focus CFO.