Is a Focus Cfo franchisee required to sign a new franchise agreement to renew?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
ill have an initial term of ten (10) years from the Effective Date (the "Initial Term"), unless earlier terminated pursuant to Section 11.
2.2. Subject to the provisions of Section 2.3, Franchisee shall have the right to renew the Franchise, on the terms and conditions contained in Focus CFO's then-current Franchise Agreement.
2.3. Franchisee's right to renew the Franchise is conditioned on the following:
- 2.3.1. Prior to the commencement of the renewal term, Franchisee executes general releases (to the extent permitted by applicable law), of any and all claims arising during or out of the Initial Term of this Agreement against Focus CFO and its officers, directors, employees, agents, parent corporations and affiliates;
- 2.3.2. Franchisee has satisfied all Performance Standards as specified in Attachment E to the Franchise Agreement;
2.3.3. Franchisee is not in default of any provision of this Agreement or any other agreement with Focus CFO;
2.3.4. Franchisee shall execute Focus CFO's then-current Franchise Agreement (with modifications to reflect the fact that the agreement relates to the renewal of the Franchise) which may contain terms that are materially different than the terms of this Agreement. Failure to sign such agreement prior to the termination of the current Agreement shall be deemed an election by Franchisee not to renew the Franchise. Subject to the provisions of Section 12, below, Franchisee has the option to Transfer its Book of Business (as defined in Attachment A) to another franchisee at the end of the Initial Term. At its option, Focus CFO may elect to extend the term of this Agreement rather than entering into a new franchise agreement;
2.3.5. Franchisee pays a renewal fee in the amount of Two Thousand Five Hundred Dollars ($2,500). Such renewal fee shall be paid by Franchisee at the time of executing the then-current Franchise Agreement as
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, a franchisee must execute Focus CFO's then-current Franchise Agreement to renew their franchise. This new agreement may contain terms that are materially different from the original agreement. If the franchisee fails to sign the new agreement before the current agreement terminates, it will be considered an election not to renew the franchise.
The initial term of the Focus Cfo franchise agreement is ten years. To renew the franchise, the franchisee must meet several conditions, including executing general releases of claims against Focus CFO, satisfying all performance standards outlined in Attachment E of the Franchise Agreement, and not being in default of any agreement with Focus CFO.
In addition to signing a new franchise agreement, the franchisee must pay a renewal fee of $2,500 at the time of executing the new agreement and satisfy any additional training and certification requirements required by Focus CFO. However, Focus CFO has the option to extend the term of the existing agreement rather than requiring a new franchise agreement.
These renewal terms are typical in franchising, as franchisors need to update agreements to reflect changes in the market, legal requirements, and the Focus Cfo system itself. Franchisees should carefully review the renewal terms and the new franchise agreement to understand their rights and obligations before committing to another term.