After the Focus Cfo Franchise Agreement expires or is terminated, for how long are franchisees restricted from providing competitive services within their assigned territory?

According to Focus Cfo's 2025 Franchise Disclosure Document, franchisees face certain non-compete restrictions both during the term of the Franchise Agreement and after its termination or expiration. Specifically, during the term and for two years afterward, franchisees are prohibited from soliciting other Focus Cfo franchisees to join another business or directly or indirectly working for a Focus Cfo client or prospective client.

After the Franchise Agreement expires or is terminated, a franchisee is restricted for a period of two years from engaging in activities that compete with Focus Cfo. This includes (i) advertising, promoting, offering, or providing competitive services on behalf of any third party within the assigned territory, and (ii) advertising, promoting, offering, or providing services to any Focus Cfo client that the franchisee previously served, regardless of location. This restriction applies unless Focus Cfo provides written authorization to do so.

These non-compete covenants are common in franchising to protect the brand's market share, client relationships, and confidential information. Prospective Focus Cfo franchisees should carefully consider the implications of these restrictions, particularly if they plan to continue providing similar services after leaving the Focus Cfo system. The restrictions could limit their ability to operate independently or join a competing firm within their former territory or with former clients.