What is the franchisee's obligation regarding third-party rights when disclosing information?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
15.6. Franchisee agrees not to disclose, directly or indirectly, to Focus CFO or to any client any information or data the disclosure of which would constitute a violation of any obligation to, or infringe on the rights of, any third party.
10.5.
Franchisee Indemnification.
Franchisee and Equity Owner shall hold harmless, defend and indemnify Focus CFO, any affiliate of Focus CFO, all employees, officers, directors, managers, members, franchisees, licensees, successors and assigns of Focus CFO and Focus CFO affiliates (collectively "Focus CFO Indemnitees") from and against all losses, damages, fines, costs, expenses or liabilities (including reasonable attorneys' fees, costs of investigation, expert fees and disbursements and all other costs of investigation, arbitration and/or litigation, court costs, settlement amounts, judgments, and compensation for damages to Focus CFO's reputation and goodwill) incurred in connection with any action, suit, demand, claim, investigation or proceeding, or any settlement thereof, which arises from or is based upon Franchisee's: (i) violation, breach or asserted violation of any federal, state or local law, regulation or rule; (ii) the commission of an act or omission involving a felony or involving fraud, embezzlement or other criminal conduct; (iii) material breach of any representation, warranty, covenant or provision of this Agreement or any other agreement between Franchisee and Focus CFO; (iv) gross negligence or intentional acts, especially related to work performed for a Focus CFO client, (v) infringement or alleged infringement, of a third party's patent, copyright, trademark, tradename, trade secrets or other intellectual property or the misuse or disclosure of third party confidential information or (vi) any behavior causing physical harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment.
- 16.5.1.
Franchisee represents that the execution and delivery of this Agreement and the performances of the services under this Agreement do not, and will not, breach or conflict with any obligations including any non-compete, non-solicitation or nondisclosure agreements that Franchisee or any Equity Owner has to a previous employer or company, or any obligation Franchisee or any Equity Owner has to keep confidential any information acquired by Franchisee prior to the Effective Date.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, franchisees must not disclose information that would violate the rights of any third party. Specifically, Focus Cfo franchisees agree not to disclose any information or data to Focus Cfo or any client if that disclosure would violate an obligation to, or infringe on the rights of, any third party. This protects the confidentiality and intellectual property of other parties.
Furthermore, Focus Cfo franchisees represent that their agreement with Focus Cfo and the performance of services under that agreement do not breach or conflict with any obligations, including non-compete, non-solicitation, or nondisclosure agreements with previous employers or companies. They also confirm they have no obligation to keep confidential any information acquired before the agreement's effective date. This ensures that the franchisee's prior commitments do not interfere with their ability to fulfill their obligations to Focus Cfo.
Focus Cfo franchisees are also obligated to indemnify Focus Cfo Indemnitees from losses, damages, costs, and expenses arising from the infringement or alleged infringement of a third party's intellectual property rights or the misuse or disclosure of third-party confidential information. This means the franchisee is responsible for defending and protecting Focus Cfo from any claims related to intellectual property or confidential information violations caused by the franchisee's actions. This indemnification clause survives the termination of the agreement, highlighting the ongoing responsibility of the franchisee in protecting third-party rights.