factual

What is the geographic scope of the post-termination non-compete for a Focus Cfo franchisee?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

For a period of two (2) years after expiration or early termination of this Agreement or any successor Franchise Agreement, unless authorized in writing by Focus CFO, Franchisee shall not (i) advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party within the Home Territory or any Secondary Territory, or (ii) advertise, promote, offer to provide or provide services to any Focus CFO client that Franchisee has previously serviced regardless of location.

Source: Item 23 — Receipts (FDD pages 37–126)

What This Means (2025 FDD)

According to the 2025 Focus Cfo Franchise Disclosure Document, following the termination or expiration of the Franchise Agreement, a franchisee is restricted from engaging in competitive business activities for two years. This restriction applies within the franchisee's Home Territory, which is defined as a seventy-five (75) mile radius surrounding the business address of the Franchisee, and any Secondary Territory they may have purchased.

In addition to the geographic limitations, the non-compete also prohibits a former Focus Cfo franchisee from soliciting or providing services to any Focus Cfo client that the franchisee had previously serviced, regardless of the client's location. This means that even if a client moves outside the franchisee's former territory, the franchisee cannot solicit or provide services to them for two years after termination.

These post-termination restrictions are common in franchise agreements to protect the franchisor's brand, customer relationships, and market share. Prospective Focus Cfo franchisees should carefully consider the implications of these restrictions, especially if they plan to continue providing similar services after leaving the Focus Cfo system. It is important to understand the boundaries of the Home Territory and any Secondary Territories, as well as the potential impact of being unable to serve former clients for a period of two years.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.