If a Focus Cfo franchisee makes untrue representations, are they required to indemnify Focus CFO?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| convicted of a misdemeanor offense involving moral turpitude; (ix) you fail to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business. With respect to a Transfer of the Franchisee's Book of Business, the Franchise Agreement will immediately terminate twelve (12) months from the date of transfer if not terminated earlier. Focus CFO is not required to give you prior notice or the right to cure for these events. | ||
| i. Your obligations on termination/non-renewal | Sections 11, 13, 15 | Return of all information, including confidential and proprietary information, including without limitation that related to our clients, potential clients, standard documents or templates, bulk marketing materials, policies or procedures, clients or contacts, including original materials, photocopies, databases, computer files that you receive either from Focus CFO, directly or indirectly, including from our service providers, or from our clients or prospective clients. Comply with non-solicitation and non-compete clauses. Not use or disclose Focus CFO confidential information. Indemnify Focus CFO for breaches, untrue representations, negligence or intentional misconduct. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, franchisees are obligated to indemnify Focus CFO for various breaches, including untrue representations. This requirement is outlined within the obligations upon termination or non-renewal of the franchise agreement.
Specifically, the franchisee must indemnify Focus CFO for breaches of the agreement, any untrue representations made, negligence, or intentional misconduct. This means that if a Focus Cfo franchisee makes false statements or misrepresentations that lead to damages or legal issues for Focus CFO, the franchisee is responsible for covering the associated costs, including legal fees and any settlements or judgments.
This indemnification clause is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's actions. Prospective Focus Cfo franchisees should carefully consider this obligation and ensure they understand the scope of potential liabilities they could incur. It is advisable to maintain adequate insurance coverage and to seek legal counsel to fully understand the implications of this clause.