Does the Focus Cfo franchise agreement specify that covenants survive termination?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.9. Survival. Notwithstanding the expiration or termination of this Agreement for any reason whatsoever, all covenants and agreements to be performed and/or observed by Franchisee, the Equity Owner and/or Other Equity Owners (as defined in Section 19) under this Agreement or which by their nature survive the expiration or termination of this Agreement hereof shall survive any such expiration or termination.
- 13.5.
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.
- 13.2.
Post-Termination Non-Compete.
For a period of two (2) years after expiration or early termination of this Agreement or any successor Franchise Agreement, unless authorized in writing by Focus CFO, Franchisee shall not (i) advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party within the Home Territory or any Secondary Territory, or (ii) advertise, promote, offer to provide or provide services to any Focus CFO client that Franchisee has previously serviced regardless of location.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the franchise agreement specifies that certain covenants survive the termination or expiration of the agreement. Specifically, all covenants and agreements to be performed by the franchisee, equity owner, or other equity owners under the agreement, or which by their nature survive the expiration or termination of the agreement, will remain in effect even after the franchise agreement ends.
This means that even after the franchise agreement is terminated, certain obligations and restrictions on the franchisee may continue. These could include non-compete clauses, confidentiality agreements, non-solicitation agreements, and other provisions designed to protect Focus Cfo's business interests. Franchisees need to understand these ongoing obligations, as they could impact their future business activities after leaving the Focus Cfo system.
For example, the Focus Cfo franchise agreement states that the franchisee agrees not to disparage Focus Cfo, the system, or any officer, employee, licensee, or franchisee of Focus Cfo, or any business practice employed by Focus Cfo through any means of communication, including the Internet, blog posts, reviews, or social media platforms, even after the termination of the agreement. Additionally, for a period of two years after the expiration or early termination of the agreement, the franchisee is restricted from engaging in competitive activities within their territory or soliciting Focus Cfo's clients.