What is the minimum notice a Focus Cfo franchisee must provide to terminate the Franchise Agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
to transfer their franchise to another Area President under certain conditions. | | Provision | Agreement | Summary | |---------------------------------------------------------------------|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | m. Conditions for Focus CFO approval of assignment | Section 12.1 | (i) Focus CFO provides consent in writing to the transfer; (ii) Area President who desires to transfer their franchise ("Transferring Area President") has been a Franchisee for at least two (2) years and developed a Book of Business of at least $500,000 of collected (cash basis) revenue during the twelve (12) months preceding the desired transfer; (iii) Transferring Area President has identified another individual who is either an existing Focus CFO Franchisee prior to the transfer and not in breach of his or her Franchise Agreement or is willing to enter into the then current Franchise Agreement; (iv) Transferring Area President provides at least 90 days' written notice of Transfer to Focus CFO if the Transfer is to an existing Franchisee and at least 120 days' notice if to a new Franchisee; (v) Transferring Area President and Recipient Area President shall provide Focus CFO a summary of all the material terms and conditions upon which the Transfer is to be made; (v) Transferring Area President executes a general release. Transferring Area President's Franchise Agreement automatically terminates twelve (12) months from the date of transf
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, the minimum notice a Transferring Area President must provide to Focus Cfo to transfer their franchise depends on who the franchise is being transferred to. If the transfer is to an existing Focus Cfo franchisee, the Transferring Area President must provide at least 90 days' written notice to Focus Cfo. If the transfer is to a new franchisee, the Transferring Area President must provide at least 120 days' notice.
This requirement ensures that Focus Cfo has adequate time to assess the proposed transfer, review the qualifications of the potential new franchisee, and ensure a smooth transition of the business. The notice period allows Focus Cfo to protect its brand and the interests of other franchisees by carefully vetting potential new operators. It also gives the transferring franchisee time to properly transition clients and business operations.
It's important to note that these notice requirements apply specifically when a franchisee is transferring their franchise to another party. The FDD does not specify the notice period required if the franchisee is terminating the agreement without transferring the business. A prospective franchisee should clarify the specific termination notice requirements with Focus Cfo during their due diligence.
Additionally, the Franchise Agreement automatically terminates twelve (12) months from the date of transfer, if not terminated by the Transferring Area President at the date of transfer. This clause ensures a clean break and prevents any potential conflicts or liabilities arising from the transferred business after a reasonable transition period.