In Michigan, under what conditions can Focus Cfo terminate a franchise before the expiration of its term?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF MICHIGAN
Focus CFO shall have the right to hold Franchisee solely liable and responsible for any breach of this Agreement caused by the failure by any Support Resource of Franchisee to follow the Focus CFO System.
- 1.6. If Franchisee is a Certified Public Accountant ("CPA") or has been a licensed CPA in the past, Franchisee agrees not to represent itself as a CPA in any way in connection with the marketing or offering of CFO Services under the Focus CFO Marks. Franchisee also agrees not to use other forms of professional accounting certifications, or certifications common to public accounting firms, including but not limited to, Chartered Accountant ("CA") or similar designations in conjunction with marketing and offering CFO Services under the Focus CFO Marks. Specifically, Franchisee agrees not to use these designations on business cards, resumes, Focus CFO website, their personal LinkedIn page, or in any other way. Franchisee understands and agrees that Focus CFO's restriction on the use of these designations is necessary to protect the Focus CFO System and Focus CFO Marks in order to prevent confusion in the market between CFO Services and other regulated accounting services and does not provide Focus CFO with any control over the Franchisee's day-to-day operations. This section applies to Franchisee and any Support Resource(s) of Franchisee.
- 1.7. As a condition to executing this Agreement, Focus CFO will conduct a background check on Franchisee and its Equity Owner. The background check generally takes seven (7) days to process, but it may take longer. Focus CFO will initiate the background check concurrent with providing Franchisee with a copy of the Franchise Disclosure Document. If Focus CFO receives an unsatisfactory background check prior to Franchisee executing this Agreement, Focus CFO's offer for Franchisee to execute this Agreement will be null and void. If Focus CFO receives an unsatisfactory background check after Franchisee executes this Agreement, the Agreement shall terminate immediately, and Franchisee's Franchise Fee will be fully refunded.
- 1.8. Termination of this Agreement shall constitute a termination of the Franchise.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
The 2025 Focus Cfo Franchise Disclosure Document includes specific amendments for Michigan franchisees. However, the document does not explicitly detail the conditions under which Focus Cfo can terminate a franchise agreement before its expiration within the Michigan-specific amendments.
Item 6 within the Michigan addendum addresses the franchisee's liability for breaches caused by their Support Resources' failure to adhere to the Focus Cfo System. Item 7 discusses background checks and termination if an unsatisfactory check is received after the agreement is executed, with a full refund of the franchise fee. Item 8 states that termination of the Agreement shall constitute a termination of the Franchise.
Prospective Focus Cfo franchisees in Michigan should carefully review the standard franchise agreement (outside of the Michigan-specific addendum) regarding termination clauses and seek clarification from Focus Cfo about specific conditions that could lead to early termination under Michigan law. It would be prudent to consult with a legal professional to fully understand their rights and obligations under the franchise agreement within the context of Michigan state law.