Is a Focus Cfo franchisee prohibited from offering services to a customer they contacted on behalf of Focus Cfo?

According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee is restricted from offering services to customers they contacted on behalf of Focus Cfo. Specifically, the franchisee cannot offer services to any customer they contacted or had contact with on behalf of Focus Cfo, nor can they attempt to dissuade such customers from doing business with Focus Cfo or reducing their business with Focus Cfo. This restriction applies during the term of the Franchise Agreement and for a period of two years following the expiration or termination of the agreement.

This non-solicitation clause ensures that franchisees do not leverage their position within the Focus Cfo network to directly compete with the franchisor by poaching clients they initially engaged on Focus Cfo's behalf. The restriction aims to protect Focus Cfo's client base and maintain the integrity of its business operations. However, this restriction does not apply to services that do not directly or indirectly compete with Focus Cfo's business.

For a prospective franchisee, this means that after the franchise agreement ends, they must be careful not to solicit or provide services to clients they worked with while operating as a Focus Cfo franchisee. Doing so could result in legal repercussions. It is important to understand the scope of services considered competitive and to ensure any independent business activities do not infringe on Focus Cfo's client relationships, especially within the Home Territory or any Secondary Territory. Franchisees should seek clarification from Focus Cfo regarding what constitutes competitive services to avoid potential conflicts.

Furthermore, during the term of the agreement, franchisees are prohibited from offering competitive services unless authorized in writing by Focus CFO. This restriction is in place to prevent franchisees from diverting Focus CFO clients to their own competing businesses. However, franchisees are allowed to be involved in other business activities as long as they can fully satisfy the performance standards required by the Franchise Agreement and comply with Attachment E.