For how long after termination is a Focus Cfo franchisee restricted from soliciting Focus Cfo clients or employees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Presidents are obtained or retained through Franchisee's efforts, shall be the Customers, Franchisees, Licensees and independent contractors of Focus CFO. Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
- 13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
- 13.3.2. solicit, approach, endeavor to entice away or have discussions or other communications (regardless of who initiates such discussions or communications) with any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group, for the purpose of causing that individual or company to terminate its relationship with the Focus CFO Consolidated Group to become employed or associated with any person, business or organization that offers services that are the same as or substantially similar to the services or products offered by Focus CFO or any of its affiliates;
- 13.3.3. offer to provide or provide services to any Customer Franchisee has contacted or had contact with on behalf of Focus CFO or attempt to cause any such Customer not to do business or to decrease the amount of business done with Focus CFO. The restrictions contained in this subsection shall not apply to services which are not, directly or indirectly, in competition with the business then being conducted by Focus CFO; or
- 13.3.4. encourage, solicit, recommend or otherwise attempt to induce or influence any Customer of Focus CFO, to engage any person or entity other than Focus CFO,
or any of its respective affiliates, to perform the types of services provided by Focus CFO.
- 13.4. Employment with any Focus CFO Client. Focus CFO clients agree not to discuss any potential arrangements or to make offers of employment to any Focus CFO franchisee with whom they have met or worked with as part of their Focus CFO arrangement without first discussing the matter with Focus CFO.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee is restricted from soliciting Focus Cfo clients or employees for a period of two years following the expiration or early termination of the Franchise Agreement. This restriction applies regardless of the reason for termination. Specifically, the franchisee cannot employ, engage, solicit, or have discussions with any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group. The Focus CFO Consolidated Group includes Focus CFO and its affiliates.
This non-solicitation clause prevents a former franchisee from attempting to poach employees or contractors from the Focus CFO network. It also prohibits the franchisee from offering services to any customer they contacted or had contact with on behalf of Focus CFO or attempting to cause any customer to cease or decrease doing business with Focus CFO. The restrictions do not apply to services that are not in direct or indirect competition with Focus CFO.
These restrictions are in place to protect Focus CFO's client base and workforce, ensuring that departing franchisees do not unfairly leverage their knowledge and connections gained during their time with Focus CFO to the detriment of the company. This type of clause is common in franchising to protect the brand and the network of franchisees. A prospective franchisee should carefully consider the implications of these restrictions, especially if they plan to remain in the same geographic area or industry after leaving the Focus Cfo system.
Focus CFO clients also agree not to discuss potential employment with any Focus CFO franchisee they have met or worked with without first discussing the matter with Focus CFO. If a franchisee accepts an offer with a Focus CFO client, they are not authorized to begin working directly for the client until either the franchisee or the Focus CFO client pays Focus CFO the termination fee outlined in the professional service agreement with the client. This protects Focus CFO from losing clients and franchisees to direct employment arrangements without compensation.