Is a Focus Cfo franchisee prohibited from soliciting independent contractors of Focus CFO to terminate their relationship with Focus CFO?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.3.2. solicit, approach, endeavor to entice away or have discussions or other communications (regardless of who initiates such discussions or communications) with any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group, for the purpose of causing that individual or company to terminate its relationship with the Focus CFO Consolidated Group to become employed or associated with any person, business or organization that offers services that are the same as or substantially similar to the services or products offered by Focus CFO or any of its affiliates;
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo franchisees face restrictions on soliciting Focus CFO's employees and independent contractors. During the term of the agreement and for two years after its expiration or termination, a franchisee is prohibited from soliciting any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group. This restriction prevents franchisees from attempting to entice these individuals or companies to terminate their relationship with Focus CFO in order to associate with a business offering similar services.
This non-solicitation clause is designed to protect Focus CFO's relationships with its personnel and prevent franchisees from poaching talent to gain an unfair competitive advantage. The term "Focus CFO Consolidated Group" includes Focus CFO and its affiliates, broadening the scope of protection. This restriction applies regardless of who initiates the discussions or communications, meaning a franchisee cannot actively recruit or even passively engage in discussions aimed at enticing someone away from Focus CFO.
For a prospective Focus Cfo franchisee, this means they must be very careful about interactions with anyone currently associated with Focus CFO. Even casual conversations could potentially be construed as solicitation if they lead to someone leaving Focus CFO to join the franchisee's business. The franchisee's responsibility extends for two years after the franchise agreement ends, creating a long-term obligation. Focus CFO retains the right to authorize exceptions to these restrictions in writing, providing a potential avenue for franchisees to seek permission for specific situations.
This type of non-solicitation clause is common in franchising to protect the franchisor's investment in its network and prevent franchisees from undermining the system by recruiting key personnel. However, the specific terms and duration can vary, so it's important for a prospective franchisee to carefully review the non-solicitation provisions in the Franchise Agreement and understand their obligations.