Does the Focus Cfo franchise agreement specify who must perform the covenants that 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.
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 which parties are responsible for performing the covenants that survive the termination of the agreement. Specifically, the agreement states that the franchisee, the equity owner, and other equity owners (as defined in Section 19) are responsible for performing and observing the covenants and agreements that survive termination.
This means that even after the franchise agreement ends, the franchisee and any equity owners are still obligated to fulfill certain responsibilities outlined in the agreement. These surviving covenants and agreements are those that, by their nature, extend beyond the term of the agreement.
For a prospective Focus Cfo franchisee, this highlights the importance of understanding all obligations within the franchise agreement, as some of these responsibilities will continue even after the agreement is terminated. It is important to carefully review Section 19 and understand which covenants and agreements are expected to survive termination.