What happens if the Equity Owner of a Focus Cfo franchise becomes permanently disabled?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
outlined in Attachment E, Focus CFO will have the right to terminate this Agreement by written notice to Franchisee without any further opportunity to cure.
- 11.4. Permanent Disability or Death. Should the Equity Owner become physically or mentally disabled or unable to perform the services required by this Agreement for a period of ninety (90) consecutive days, or for an aggregate period of one hundred twenty (120) days in any one hundred eighty (180) day period, Focus CFO has a right to terminate this Agreement by written notice to Franchisee. This Agreement shall terminate immediately upon the death of the Equity Owner.
- 11.5. Payments upon Termination. Upon termination of this Agreement for any reason, payments due through the date of termination under Section 8 of this Agreement will be paid to Franchisee by Focus CFO, as follows:
- 11.5.1. So long as Franchisee's Book of Business has not been Transferred pursuant to Section 12, payments for work credited to Franchisee's Book of Business prior to the date of termination of this Agreement and collected by Focus CFO within 90 days of the termination of this Agreement will be paid to Franchisee within 120 days of termination of this Agreement.
- 11.5.2.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, if the Equity Owner of a Focus Cfo franchise becomes physically or mentally disabled and is unable to perform the required services for 90 consecutive days, or for a total of 120 days within a 180-day period, Focus Cfo has the right to terminate the Franchise Agreement by providing written notice to the franchisee. If the agreement is terminated due to permanent disability, payments for work credited to the franchisee's book of business before the termination date will be paid to the franchisee or their estate.
Payments for work credited to the franchisee's book of business after the termination date will be split. Fifty percent will be paid to the franchisee or their estate, and the other fifty percent will be paid to the new Area President(s) assigned to the clients in the franchisee's book of business. This payment arrangement will continue for up to five years from the date of permanent disability, unless an alternative agreement, previously approved by Focus Cfo, is in place.
This clause protects Focus Cfo by ensuring the franchise continues to operate effectively even if the Equity Owner is incapacitated. It also provides a degree of financial security for the franchisee or their estate by continuing payments related to the existing book of business. Prospective franchisees should consider this provision carefully, especially if their personal circumstances make them more susceptible to disability. It would be prudent to discuss potential disability insurance or succession planning with Focus Cfo during the due diligence process.