factual

Does the non-solicitation clause for Focus Cfo apply to Focus CFO franchisees?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

promote, offer to provide or provide services to any Focus CFO client that Franchisee has previously serviced regardless of location.

  • 13.3. Non-Solicitation. Franchisee acknowledges that all clients and prospective clients of Focus CFO (the "Customers") and all CFOs and Area Presidents, whether or not such Customers or CFOs and 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. 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");
    • 13.3.2. solicit, approach, endeavor to entice away or have discussions or other communications (regardless of who initiates such discussions or communications) with any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group, for the purpose of causing that individual or company to terminate its relationship with the Focus CFO Consolidated Group to become employed or associated with any person, business or organization that offers services that are the same as or substantially similar to the services or products offered by Focus CFO or any of its affiliates;
    • 13.3.3. offer to provide or provide services to any Customer Franchisee has contacted or had contact with on behalf of Focus CFO or attempt to cause any such Customer not to do business or to decrease the amount of business done with Focus CFO. The restrictions contained in this subsection shall not apply to services which are not, directly or indirectly, in competition with the business then being conducted by Focus CFO; or
    • 13.3.4. encourage, solicit, recommend or otherwise attempt to induce or influence any Customer of Focus CFO, to engage any person or entity other than Focus CFO,

or any of its respective affiliates, to perform the types of services provided by Focus CFO.

  • 13.4. Employment with any Focus CFO Client. Focus CFO clients agree not to discuss any potential arrangements or to make offers of employment to any Focus CFO franchisee with whom they have met or worked with as part of their Focus CFO arrangement without first discussing the matter with Focus CFO. Franchisee agrees to notify Focus CFO, should any client that Franchisee has personally met for the first time since joining Focus CFO, makes an offer, either verbal or written to Franchisee.

Source: Item 23 — Receipts (FDD pages 37–126)

What This Means (2025 FDD)

According to Focus Cfo's 2025 Franchise Disclosure Document, the non-solicitation clause applies to Focus CFO franchisees. During the term of the Franchise Agreement and for two years following its expiration or termination, the franchisee is restricted from soliciting Focus CFO's clients, other franchisees, licensees, independent contractors, officers, directors, or agents. This restriction applies whether or not the clients or personnel were obtained through the franchisee's efforts.

Specifically, the franchisee cannot employ or engage any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group. They are also prohibited from soliciting or attempting to entice away any of these individuals from their relationship with Focus CFO to work with a business offering similar services. Additionally, franchisees cannot offer services to any customer they contacted on behalf of Focus CFO or attempt to dissuade them from doing business with Focus CFO.

These restrictions aim to protect Focus CFO's relationships with its clients and personnel. However, the non-solicitation clause does not apply to services that do not directly or indirectly compete with Focus CFO's business. Franchisees are also prohibited from disparaging Focus CFO, its system, or its personnel during the term of the agreement and after termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.