Where in the Focus Cfo Franchise Agreement is the definition of 'Transfer' located?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| convicted of a misdemeanor offense involving moral turpitude; (ix) you fail to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business. With respect to a Transfer of the Franchisee's Book of Business, the Franchise Agreement will immediately terminate twelve (12) months from the date of transfer if not terminated earlier. Focus CFO is not required to give you prior notice or the right to cure for these events. | ||
| i. Your obligations on termination/non-renewal | Sections 11, 13, 15 | Return of all information, including confidential and proprietary information, including without limitation that related to our clients, potential clients, standard documents or templates, bulk marketing materials, policies or procedures, clients or contacts, including original materials, photocopies, databases, computer files that you receive either from Focus CFO, directly or indirectly, including from our service providers, or from our clients or prospective clients. Comply with non-solicitation and non-compete clauses. Not use or disclose Focus CFO confidential information. Indemnify Focus CFO for breaches, untrue representations, negligence or intentional misconduct. |
| j. Assignment of | Section 12 | No restriction on Focus CFO's right to assign. |
| contract | ||
| by Focus CFO | ||
| k. "Transfer" by you – definition | Section 12, Att. A | "Transfer" shall mean to sell, convey or otherwise dispose of franchisee's Book of Business |
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, the definition of 'Transfer' is located in Section 12 and Attachment A of the Franchise Agreement. The document defines 'Transfer' as selling, conveying, or otherwise disposing of the franchisee's Book of Business. This is important for prospective franchisees to understand because it clarifies what actions constitute a transfer under the agreement, which is relevant when considering selling their franchise or its assets.
Focus Cfo's specification of what constitutes a 'Transfer' is crucial for franchisees. Knowing that it encompasses not only outright sales but also any form of conveyance or disposal ensures that franchisees are aware of the circumstances that trigger the transfer provisions of the agreement. This definition helps prevent ambiguity and potential disputes regarding whether a transfer has occurred.
It is also important to note that Focus Cfo's approval is required for any transfer by a franchisee, and there are specific conditions that must be met for the franchisor to grant this approval. These conditions include Focus CFO providing written consent, the transferring Area President having been a franchisee for at least two years with a Book of Business generating at least $500,000 in collected revenue during the 12 months preceding the desired transfer, identifying a suitable recipient (either an existing franchisee in good standing or someone willing to enter into the current Franchise Agreement), providing written notice of the transfer (90 days for existing franchisees, 120 days for new franchisees), summarizing the material terms of the transfer, and executing a general release. These stipulations ensure that any transfer aligns with Focus CFO's standards and protects the integrity of the franchise system.