If a Focus Cfo franchisee is accused of embezzlement, can Focus CFO terminate the agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause.
For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus CFO can terminate the franchise agreement immediately if a franchisee is accused of embezzlement. Specifically, Focus CFO has the right to terminate the agreement for cause upon written notice to the franchisee, detailing the circumstances.
The FDD defines "Cause" to include situations where the franchisee engages in or is accused of committing an act involving fraud, embezzlement, or other crime that could negatively affect Focus CFO's reputation, the Focus CFO system, or the Focus CFO marks. This also applies if the franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude.
This means that even an accusation of embezzlement, not just a conviction, can be grounds for immediate termination. This is a significant risk for franchisees, as they could lose their franchise and franchise fee based on an accusation, regardless of its validity. Focus CFO also does not have to refund the franchise fee if they terminate the agreement for cause.