What information about the revenue split must be provided to Focus CFO during a transfer?

According to Focus CFO's 2025 Franchise Disclosure Document, when a franchisee (Transferring Area President) transfers their franchise to another individual (Recipient Area President), both parties must provide Focus CFO with specific details regarding the terms of the transfer. This includes a summary of all material terms and conditions, such as the purchase price, if any, that the Recipient Area President will pay to the Transferring Area President.

Critically, the parties must disclose any agreement to split the revenue from the Book of Business. This disclosure must include the percentage split of the revenue and the duration for which this split will be in effect between the Transferring Area President and the Recipient Area President. This information allows Focus CFO to understand the financial arrangements of the transfer and ensure a smooth transition of the franchise operations.

This requirement ensures transparency and allows Focus CFO to maintain oversight and control over its franchise network. By understanding the financial terms of the transfer, Focus CFO can protect its interests and ensure that both the transferring and receiving franchisees are operating in compliance with the franchise agreement. This also helps in managing post-transfer payments and responsibilities, as Focus CFO can then determine who is responsible for making ongoing payments, if any, to the Transferring Area President based on the written agreement.