What happens to a Focus Cfo franchisee's interest in the franchise if Focus Cfo terminates the Franchise Agreement following a default?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 2.1 | Term is 10 years. |
| b. Renewal or extension | Section 2.2 | If, upon expiration of the Initial Term of the |
| of the term | franchise, you are still performing as an Area | |
| Provision | Section in Franchise Agreement | Summary |
| Agreement | President then you shall have the right to renew the franchise if certain conditions are met. | |
| c. Requirements for you to | Section 2.3 | (i) subject to state law, you execute general releases in a form similar to that in Exhibit G; (ii) you have complied with all provisions of the Franchise Agreement; (iii) you have satisfied all Performance Standards as set forth in Attachment E to the Franchise Agreement; (iv) you are not in default of any provisions of the Franchise Agreement or any other agreement between Franchisee and Focus CFO; and (v) we reserve the right to have you sign a new Franchise Agreement which may have terms that are materially different and may require additional training and certification requirements. A renewal fee of $2,500 is required to be paid by you to renew your franchise. |
| renew or extend | ||
| d. Termination by you | Section 11.1 | If you decide to terminate the Franchise Agreement, you will give at least sixty (60) days' notice prior to such termination. |
| e. Termination by Focus | None | Focus CFO does not have the right to terminate without cause. |
| CFO without cause | ||
| f. Termination by Focus | Section 11.2, 11.3 | We may terminate the Franchise Agreement if you default. If we terminate the Franchise Agreement following a default, your interest in the franchise will terminate. |
| CFO with cause |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, if Focus Cfo terminates the Franchise Agreement due to a franchisee's default, the franchisee's interest in the franchise will terminate. This means the franchisee will lose all rights to operate the Focus Cfo franchise.
Termination by Focus Cfo can occur if the franchisee breaches any provision of the Franchise Agreement or any other agreement with Focus Cfo or any Focus Cfo affiliate, and fails to cure the breach within thirty (30) days. Termination can also occur if the franchisee fails to meet Focus Cfo's Performance Standards after receiving thirty (30) days' notice, or accumulates three (3) violations of any individual or combination of performance standards. These standards include compliance with Focus Cfo's policies, participation in training sessions, adherence to the company's core values, collaboration with other Area Presidents and CFOs, following company processes, avoiding negligence in duty performance, and following policies or directives from Focus Cfo or its affiliates.
Certain defaults cannot be cured, leading to immediate termination without prior notice or the right to cure. These include insolvency, filing for bankruptcy, making an assignment for the benefit of creditors, defaming or disparaging Focus Cfo, engaging in dishonesty or misconduct, causing harm to individuals or property, unauthorized use of Focus Cfo Marks or confidential information, and committing or being accused of crimes that could affect Focus Cfo's reputation. Additionally, failure to comply with applicable federal, state, or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business can result in immediate termination.
Upon termination or non-renewal, the franchisee must return all information, including confidential and proprietary information related to clients, documents, marketing materials, policies, and databases. The franchisee must also comply with non-solicitation and non-compete clauses, refrain from using or disclosing Focus Cfo confidential information, and indemnify Focus Cfo for breaches, misrepresentations, negligence, or misconduct.