Is a Focus Cfo franchisee prohibited from soliciting any Focus Cfo client after termination, regardless of whether they serviced them?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Presidents are obtained or retained through Franchisee's efforts, shall be the Customers, Franchisees, Licensees and independent contractors of Focus CFO. Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
- 13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
- 13.3.2.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee faces restrictions on soliciting Focus Cfo clients post-termination. Specifically, for two years after the termination or expiration of the Franchise Agreement, the franchisee cannot solicit or provide services to any Focus Cfo client they contacted or had contact with on behalf of Focus CFO. This restriction applies regardless of whether the franchisee directly serviced the client.
This non-solicitation clause means that a former Focus Cfo franchisee is barred from actively pursuing or offering services to clients they interacted with during their time with Focus CFO. The FDD specifies that franchisees cannot "offer to provide or provide services to any Customer Franchisee has contacted or had contact with on behalf of Focus CFO or attempt to cause any such Customer not to do business or to decrease the amount of business done with Focus CFO." This prevents a departing franchisee from leveraging relationships built under the Focus CFO name to directly compete with the company.
The restrictions do not apply to services that are not in direct competition with Focus CFO's business. However, the franchisee is prohibited from encouraging or influencing any Focus CFO customer to engage another entity other than Focus CFO for services provided by Focus CFO.
Prospective franchisees should be aware of these limitations, as they could impact their business activities after leaving the Focus Cfo system. It is important to understand the scope of "contact" and how Focus CFO defines a "customer" to fully grasp the implications of this non-solicitation clause.