In Michigan, can Focus Cfo terminate a franchise agreement before its expiration without good cause?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.1.
Termination by Franchisee.
Franchisee may terminate this Agreement at any time with or without cause on at least sixty (60) days' written notice to Focus CFO.
Notwithstanding this requirement, should Franchisee know in advance that it intends to terminate this Agreement, Focus CFO requests that Franchisee provide it with additional notice of such termination so that Focus CFO has additional time to work with Franchisee and transition Focus CFO clients to other franchisees or licensees.
- 11.2.
Termination by Franchisor for Cause.
Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause.
For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.
- 11.3.
Termination by Franchisor for Failure to Perform.
Focus CFO has the right to terminate this Agreement for cause due to Franchisee's failure to meet Focus CFO's Performance Standards ("Failure to Perform").
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
Based on the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo can terminate the franchise agreement before its expiration for specific causes. These causes include the franchisee becoming insolvent, filing for bankruptcy, making assignments for the benefit of creditors, defaming Focus Cfo, engaging in dishonesty or willful misconduct, causing harm to individuals or property, unauthorized use of Focus Cfo's marks or confidential information, involvement in fraudulent activities, or failing to comply with applicable regulations.
Focus Cfo also has the right to terminate the agreement if the franchisee fails to meet Focus Cfo's performance standards. However, in most cases of failure to perform, the franchisee has thirty days from the receipt of a notice of default to correct the breach, unless it falls under the causes listed in section 11.2.
The franchisee, on the other hand, has the right to terminate the agreement at any time with or without cause, provided they give Focus Cfo at least sixty days' written notice. This means a Focus Cfo franchisee in Michigan can end the agreement early without needing a specific reason, as long as they provide the required notice. Focus Cfo requests additional notice if the franchisee knows in advance that it intends to terminate the agreement so that Focus Cfo has additional time to transition Focus Cfo clients to other franchisees or licensees.
It is important to note that if Focus Cfo terminates the agreement for cause or failure to perform, the franchisee will not receive a refund of the franchise fee. Conversely, if the agreement terminates due to an unsuccessful background check, Focus Cfo will refund the franchise fee in full.