In Michigan, can Focus Cfo refuse to renew a franchise on terms generally available to other franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
ill have an initial term of ten (10) years from the Effective Date (the "Initial Term"), unless earlier terminated pursuant to Section 11.
2.2. Subject to the provisions of Section 2.3, Franchisee shall have the right to renew the Franchise, on the terms and conditions contained in Focus CFO's then-current Franchise Agreement.
2.3. Franchisee's right to renew the Franchise is conditioned on the following:
- 2.3.1. Prior to the commencement of the renewal term, Franchisee executes general releases (to the extent permitted by applicable law), of any and all claims arising during or out of the Initial Term of this Agreement against Focus CFO and its officers, directors, employees, agents, parent corporations and affiliates;
- 2.3.2. Franchisee has satisfied all Performance Standards as specified in Attachment E to the Franchise Agreement;
2.3.3. Franchisee is not in default of any provision of this Agreement or any other agreement with Focus CFO;
2.3.4. Franchisee shall execute Focus CFO's then-current Franchise Agreement (with modifications to reflect the fact that the agreement relates to the renewal of the Franchise) which may contain terms that are materially different than the terms of this Agreement. Failure to sign such agreement prior to the termination of the current Agreement shall be deemed an election by Franchisee not to renew the Franchise. Subject to the provisions of Section 12, below, Franchisee has the option to Transfer its Book of Business (as defined in Attachment A) to another franchisee at the end of the Initial Term. At its option, Focus CFO may elect to extend the term of this Agreement rather than entering into a new franchise agreement;
2.3.5. Franchisee pays a renewal fee in the amount of Two Thousand Five Hundred Dollars ($2,500). Such renewal fee shall be paid by Franchisee at the time of executing the then-current Franchise Agreement as
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
The 2025 Focus Cfo Franchise Disclosure Document does not explicitly address whether Focus Cfo can refuse to renew a franchise in Michigan on terms generally available to other franchisees. However, the FDD does outline the general conditions for renewal.
According to the FDD, a Focus Cfo franchisee has the right to renew their franchise for an additional term, provided they meet certain conditions. These conditions include executing general releases, satisfying all performance standards, not being in default of any agreements with Focus Cfo, executing Focus Cfo's then-current Franchise Agreement, paying a renewal fee of $2,500, and satisfying any additional training and certification requirements.
Notably, the renewal agreement may contain terms that are materially different from the original agreement. If a franchisee fails to sign the new agreement before the current one expires, it's considered an election not to renew. While Focus Cfo may elect to extend the term of the existing agreement, they also have the option to offer a new franchise agreement with potentially different terms.
To fully understand Focus Cfo's renewal policies in Michigan and whether they can refuse renewal on generally available terms, a prospective franchisee should directly ask Focus Cfo about any state-specific regulations or company policies that might apply.