Does the non-solicitation clause for Focus Cfo apply to all clients the franchisee has contacted, or only those they have serviced?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Presidents are obtained or retained through Franchisee's efforts, shall be the Customers, Franchisees, Licensees and independent contractors of Focus CFO. 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.
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 extends to all clients the franchisee has contacted on behalf of Focus Cfo, not just those they have directly serviced. This means that a franchisee is prohibited from offering services to or attempting to entice away any customer they have had contact with while representing Focus Cfo. This restriction applies both during the term of the Franchise Agreement and for a period of two years following its expiration or termination.
This provision is designed to protect Focus Cfo's client base and prevent franchisees from leveraging their access to clients gained through the franchise system to establish competing businesses. The franchisee is prohibited from causing any customer they contacted on behalf of Focus Cfo to discontinue or reduce their business with Focus Cfo. This includes direct solicitation and indirect attempts to influence the client's decision.
For a prospective Focus Cfo franchisee, this non-solicitation clause has significant implications. It restricts the franchisee's ability to independently engage with clients they encountered through Focus Cfo, even after the franchise agreement ends. Therefore, understanding the scope and duration of this clause is crucial for evaluating the long-term business prospects and potential limitations of the franchise. Franchisees should seek clarification from Focus Cfo regarding specific scenarios and how the non-solicitation clause would apply in practice.