If Focus Cfo terminates the Franchise Agreement for cause, will the Franchise Fee be refunded?

According to the 2025 Focus Cfo Franchise Disclosure Document, if Focus Cfo terminates the Franchise Agreement for cause, the franchise fee will not be refunded. The FDD specifies that if Focus Cfo terminates the agreement for "cause" as defined in the agreement, Focus Cfo will not refund the franchise fee.

This policy is further detailed in Item 23, outlining various scenarios related to refunds of the franchise fee. Specifically, it states that if Focus Cfo terminates the agreement for cause, no refund will be provided. This is an important consideration for prospective franchisees, as it means that in the event of a termination due to the franchisee's actions or failures as defined in the agreement, the initial franchise fee is forfeited.

Item 17 provides more detail on what constitutes "cause" for termination. It includes scenarios where the franchisee breaches the agreement, fails to meet performance standards, or engages in actions that could harm the reputation of Focus Cfo. These 'cause' scenarios include both defaults that can be cured with 30 days notice, and defaults that cannot be cured, such as insolvency or engaging in illegal activities. A prospective franchisee should carefully review these sections to understand the circumstances under which their franchise could be terminated and the franchise fee would not be refunded.

This policy is not uncommon in the franchise industry, as initial fees are often used to cover the franchisor's initial costs of setting up the franchise and providing training and support. However, it underscores the importance of adhering to the terms of the franchise agreement and maintaining the required performance standards to avoid termination and loss of the initial investment.