What is the minimum termination fee that a Focus Cfo client must pay to Focus Cfo if they hire a Focus Cfo franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
at the fee which has been agreed to between the Focus CFO client and Focus CFO is a reasonable estimate thereof and does not constitute a penalty or forfeiture. Franchisee also acknowled
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the minimum termination fee outlined in agreements with Focus Cfo clients is $80,000. This fee is subject to future increases. This fee is what a Focus Cfo client would have to pay to Focus Cfo if they terminate their agreement with Focus Cfo.
This means that if a Focus Cfo client hires a Focus Cfo franchisee, Focus Cfo considers this a breach of contract, warranting a termination fee. The franchisee acknowledges that this termination fee is a reasonable estimate of damages and lost opportunities for Focus Cfo and is not considered a penalty.
As a prospective franchisee, it's important to understand that Focus Cfo aims to protect its interests and revenue streams. This clause ensures that clients cannot circumvent the agreement by directly hiring a franchisee, which would cut into Focus Cfo's profits. Franchisees should be aware of this potential liability for clients they may interact with.