Does the non-solicitation clause apply to Focus Cfo Area Presidents?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
- 13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the non-solicitation clause applies to Focus Cfo franchisees, including Area Presidents. During the term of the Franchise Agreement and for two years following its expiration or termination, the franchisee is prohibited from employing or engaging any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of Focus CFO or its affiliates, without written authorization from Focus CFO. This restriction applies whether the Customers or CFOs and Area Presidents are obtained or retained through Franchisee's efforts.
This means that as a Focus Cfo franchisee, specifically an Area President, you are restricted from soliciting or hiring anyone associated with the Focus CFO Consolidated Group during your franchise term and for two years after the agreement ends. This includes employees, independent contractors, other franchisees, and even officers or directors of Focus CFO. The non-solicitation clause is in place to protect Focus CFO's existing network and workforce.
This type of clause is common in franchising to prevent franchisees from poaching employees or contractors from the franchisor or other franchisees, which could disrupt the system and create unfair competition. For a prospective Focus Cfo franchisee, it's crucial to understand the implications of this clause, especially if you have relationships with individuals within the Focus CFO network. Violating this clause could lead to legal repercussions and damage your relationship with Focus CFO.
It is important to note that Focus CFO can provide written authorization to waive this restriction, so there may be exceptions on a case-by-case basis. As a prospective franchisee, it would be prudent to discuss any potential conflicts or concerns regarding this non-solicitation clause with Focus CFO during your due diligence process.