Can the Home Territory for a Focus Cfo franchise extend into neighboring states?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1. Territory. Franchisee will receive a non-exclusive geographic territory for the operation of its Franchise (the "Home Territory"). The Home Territory will be defined as a seventy-five (75) mile radius surrounding the business address of the Franchisee as provided by Franchisee in Section 16.3. This Home Territory, however, shall not extend into neighboring states where Focus CFO is not registered to sell franchises as of the effective date of this Agreement. Other franchisees will likely be operating within the geographic area included in the Home Territory, or a portion of the Home Territory. Thus, Franchisee will likely face competition from other franchisees for Focus CFO clients and potential clients. However, Franchisees are required to work together within each geographic area in a collaborative and supportive manner and coordinate efforts within the geographic area to minimize conflicts.
- 3.1.1. Franchisee shall not perform any form of direct outreach marketing, solicitation or networking activities for lead generation or building a referral network ("Direct Outreach Marketing") outside of its Home Territory without the prior written approval of Focus CFO. In order to perform Direct Outreach Marketing outside the Home Territory, Franchisee will be required to purchase an additional territory ("Secondary Territory"). However, Franchisee is permitted to contact and follow leads for client opportunities referred to it by referral partners within its Home Territory, even if those client opportunities fall outside of the Franchisee's Home Territory, except if the client opportunity is located in a state listed as restricted in the Focus CFO Policies and Procedures Playbook.
- 3.1.2. To purchase a Second Territory, Franchisee shall request approval in writing by contacting Focus CFO's President. Focus CFO reserves the right to
approve or deny Franchisee's request to purchase a Secondary Territory. Upon approval to purchase a Secondary Territory, Franchisee may be required to sign the then-current Franchise Agreement or an amendment to this Agreement to memorialize the purchase of the Secondary Territory. Franchisee shall also be required to pay the then-current Franchise Fee.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee's Home Territory is defined as a 75-mile radius around the business address provided by the franchisee. However, this Home Territory cannot extend into neighboring states where Focus Cfo is not registered to sell franchises as of the agreement's effective date. This restriction means that if a franchisee's 75-mile radius includes areas in a neighboring state where Focus Cfo isn't registered, those areas are excluded from the Home Territory.
Focus Cfo does allow franchisees to perform direct outreach marketing, solicitation, or networking activities outside their Home Territory if they purchase an additional territory, known as a Secondary Territory. To do so, the franchisee must request and receive written approval from Focus Cfo's President and may be required to sign the then-current Franchise Agreement or an amendment and pay the then-current Franchise Fee.
Despite territory limitations, Focus Cfo franchisees can still contact and follow leads for client opportunities referred to them by referral partners within their Home Territory, even if those client opportunities are located outside the Home Territory. However, this is conditional, as the client opportunity cannot be located in a state listed as restricted in the Focus Cfo Policies and Procedures Playbook. This exception allows franchisees to pursue business beyond their immediate territory through referrals, provided they adhere to Focus Cfo's policies and state restrictions.