For how long after the termination or expiration of the Focus Cfo Franchise Agreement are franchisees prohibited from soliciting other franchisees to join another business?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| compliance with Attachment E to the Franchise Agreement. | ||
| r. Non-competition covenants during and after the franchise is terminated or expires | Section 13.2, 13.3 | During the term of the Franchise Agreement and for two years after the termination or expiration of the Franchise Agreement, you will not solicit other Franchisees to join you in another business and you will not directly or indirectly work for a Focus CFO client or prospective client. For a period of two (2) years after expiration or early termination of the Franchise Agreement or any successor Franchise Agreement, unless authorized in writing by Focus CFO, you may not (i) advertise, promote, offer to provide or provide services which are competitive to Focus CFO's business on behalf of any third party within the assigned territory; or (ii) advertise, promote, offer to provide or provide services to any Focus CFO client that you have previously served regardless of location. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, franchisees are restricted from soliciting other franchisees to join another business for a period of two years after the termination or expiration of the Franchise Agreement. Additionally, during the term of the Franchise Agreement, franchisees are also prohibited from soliciting other franchisees to join another business.
This non-solicitation clause prevents a former franchisee from actively recruiting current Focus Cfo franchisees to a competing venture. This is a fairly standard practice in franchising, designed to protect the franchisor's network and the stability of its franchise system. The two-year restriction aims to prevent a departing franchisee from leveraging their knowledge of the Focus Cfo system and relationships within the network to the detriment of the franchisor.
Beyond soliciting other franchisees, the FDD also states that for two years after the agreement ends, former franchisees cannot work directly or indirectly for a Focus Cfo client or prospective client. Furthermore, they are prohibited from offering services competitive to Focus Cfo's business within their assigned territory or to any Focus Cfo client they previously served, regardless of location, unless authorized in writing by Focus CFO. These measures are in place to further protect Focus Cfo's business interests and client relationships after a franchise agreement concludes.