Are franchisees or their spouses required to sign a personal guaranty for a Focus Cfo franchise?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither you nor your spouse are required to sign a personal guaranty; however you will be bound to certain provisions of the Franchise Agreement as an equity owner of the franchise entity. The Franchise Agreement will require you to comply with a non-compete agreement and confidentiality obligations. Your spouse is not required to sign any non-compete or confidentiality agreement. Any employee and/or outside contractor that you hire will be required to sign a confidentiality and non-compete agreement whereby they acknowledge being bound to the same covenants as you are under the Franchise Agreement.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, neither franchisees nor their spouses are required to sign a personal guaranty. However, Focus Cfo requires franchisees to operate as a limited liability company or similar entity, with the franchisee owning 100% of the entity. As an equity owner of the franchise entity, the franchisee will be bound to certain provisions of the Franchise Agreement.
Specifically, the franchisee will be required to comply with a non-compete agreement and confidentiality obligations as part of the Franchise Agreement. It is important to note that while the franchisee is bound by these provisions, the franchisee's spouse is not required to sign any non-compete or confidentiality agreement.
Any employees or outside contractors hired by the franchisee will be required to sign a confidentiality and non-compete agreement, acknowledging that they are bound to the same covenants as the franchisee under the Franchise Agreement. This ensures that the Focus Cfo's confidential information and business practices are protected by everyone working within the franchise.