What happens if a Focus Cfo franchisee violates the post-termination non-compete or non-solicitation agreements?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee or the Focus CFO client, pay directly to Focus CFO the termination fee which is set forth in the professional service agreement with the Focus CFO client. Franchisee acknowledges and agrees Focus CFO's damages and lost opportunities upon termination of the Agreement will be difficult to ascertain and that the fee which has been agreed to between the Focus CFO client and Focus CFO is a reasonable estimate thereof and does not constitute a penalty or forfeiture. Franchisee also acknowledges that the minimum termination fee outlined in these agreements with Focus CFO clients is Eighty Thousand Dollars ($80,000) and is subject to future increases. Focus CFO's right to these damages is cumulative with all other available remedies under this Agreement.
- 13.5. Non-Disparagement. Franchisee hereby agrees that he or she will not, either during the term of this Agreement or at any time following the termination hereof for any reason, disparage Focus CFO, the System or any officer, employee, licensee or franchisee of Focus CFO, or any business practice employed by Focus CFO or any officer, employee, licensee or franchisee thereof through any means of communication, including but not limited to the Internet, blog posts, reviews or social media platforms.
- 13.6. If any provision of this Section 13, as applied to any party or to any circumstances, is adjudged by a court to be invalid or unenforceable, the same will in no way affect any other provision of this Section 13 or any other part of this Agreement, the application of such provision in any other circumstances, or the validity or enforceability of this Agreement.
- 13.7. Franchisee acknowledges that the restrictive covenants contained in this Section 13 are essential elements of this Agreement and that without their inclusion Focus CFO would not have entered into this Agreement. Franchisee acknowledges that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Focus CFO, the Focus C
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, if a franchisee violates the post-termination non-compete or non-solicitation agreements, Focus CFO's damages and lost opportunities upon termination of the Agreement will be difficult to ascertain. The document states that the fee agreed to between Focus CFO and the client is a reasonable estimate of these damages and does not constitute a penalty or forfeiture. The minimum termination fee outlined in these agreements with Focus CFO clients is $80,000 and is subject to future increases. Focus CFO's right to these damages is cumulative with all other available remedies under the Agreement.
Focus CFO outlines the non-compete and non-solicitation clauses in Section 13 of the franchise agreement. After the agreement terminates, the franchisee cannot provide services competitive to Focus CFO within their Home Territory or any Secondary Territory for two years. They also cannot solicit Focus CFO clients they previously serviced, regardless of location. Franchisees also cannot employ or engage any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO or its affiliates during the term of the agreement and for two years after termination.
These measures protect Focus CFO's client base, business model, and reputation. The acknowledgement of damages being difficult to ascertain and the setting of a minimum termination fee of $80,000, which is subject to increase, suggests Focus CFO is serious about enforcing these clauses. The franchisee also acknowledges that the restrictive covenants contained in Section 13 are essential elements of the Agreement and that without their inclusion Focus CFO would not have entered into the Agreement. The franchisee also waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable.
Furthermore, the franchisee is responsible for indemnifying Focus CFO from any losses, damages, fines, costs, expenses, or liabilities, including attorney's fees, arising from a violation of any federal, state, or local law, regulation, or rule, or from a material breach of the franchise agreement. This indemnification extends to damages to Focus CFO's reputation and goodwill. This obligation survives the termination of the agreement, meaning that even after the franchise relationship ends, the franchisee remains liable for any breaches of the agreement, including violations of the non-compete and non-solicitation clauses.