How many violations of performance standards can a Focus Cfo franchisee accumulate before termination?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| g. "Cause" defined - | Section 11.3 | You breach any provision of the Franchise Agreement or any other agreement with Focus CFO or any Focus CFO affiliate and you fail to cure the breach within thirty (30) days. You fail to meet Focus CFO's Performance Standards and such failure continues after receiving thirty (30) days' notice from Focus CFO of such failure to meet the standard, or you accumulate three (3) violations of any individual or combination of the standards, which include: (i) you must comply with Focus CFO's policies as outlined in the Playbook; (ii) you must participate in, or attend, at least 75% of the total required training sessions held by Focus CFO; |
| defaults which can be |
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, a franchisee can accumulate up to three violations of performance standards before Focus Cfo can terminate the Franchise Agreement. Focus Cfo will provide a 30-day notice to cure the failure to meet the standards. The performance standards include compliance with Focus Cfo's policies in the Playbook, participation in at least 75% of required training sessions, adherence to the company's core values, regular collaboration with other Area Presidents and CFOs, following core processes and procedures, avoiding negligence in duty performance, and following Focus Cfo's policies and directives.
This means that if a Focus Cfo franchisee fails to meet any combination of these standards three times, even if each violation is for a different standard, Focus Cfo has grounds for termination, assuming the franchisee does not correct the issue within the 30-day cure period after receiving notice. This is a crucial point for prospective franchisees to understand, as it highlights the importance of consistently meeting the franchisor's expectations and maintaining compliance with all operational and training requirements.
It is important to note that this termination clause is related to 'curable' defaults. The FDD also lists several 'non-curable' defaults that can lead to immediate termination without prior notice or an opportunity to cure. These include events like insolvency, bankruptcy, defamation of Focus Cfo, criminal acts, or unauthorized use of Focus Cfo's trademarks or confidential information. Therefore, franchisees must be vigilant not only in meeting performance standards but also in avoiding any actions that could be considered non-curable defaults.