Do Focus Cfo franchisees and licensees have the option to renew their agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
The sale of a franchise is under a franchise agreement entered into between the Area President franchisee and the Company. The sale of a license is under a license agreement entered into between the CFO licensee and the Company. The fee under both of these agreements is due upon signing the agreement. The fee may be fully or partially refundable based on certain criteria set forth in the agreement. The fee in both agreements is comprised of two components: a training fee and an initial franchise/license fee. The initial term of both the franchise and license agreement is ten years. Franchisees and licensees have the option to renew their agreement at the end of the initial term based on meeting certain criteria as set forth in the agreement and executing the then-current franchise or license agreement.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, both franchisees and licensees have the option to renew their agreements. The initial term for both the franchise and license agreement is ten years. However, this renewal is contingent upon meeting specific criteria outlined in their respective agreements and executing the then-current franchise or license agreement.
For a Focus Cfo franchisee, the right to renew is conditional. Prior to the renewal, the franchisee must execute general releases of any claims against Focus Cfo and its affiliates, satisfy all performance standards specified in Attachment E of the Franchise Agreement, and not be in default of any agreement with Focus Cfo. Additionally, the franchisee must execute Focus Cfo's then-current Franchise Agreement, which may contain materially different terms, and pay a renewal fee of $2,500. The franchisee must also satisfy any additional training and certification requirements required by Focus Cfo.
This means that while Focus Cfo offers the opportunity for renewal, it is not guaranteed. Franchisees must maintain good standing, meet performance benchmarks, and be willing to accept potentially updated terms in a new agreement. The $2,500 renewal fee is a relatively small cost compared to the initial franchise fee, but the potential for new, materially different terms in the renewed agreement is something a franchisee should carefully consider. The ability to transfer the Book of Business to another franchisee at the end of the initial term provides an additional option if the franchisee chooses not to renew.