Does the non-solicitation clause apply to prospective clients of Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer 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.
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 does indeed apply to prospective clients of Focus Cfo. The FDD states that all clients and prospective clients of Focus Cfo are considered customers of Focus Cfo, regardless of how they were obtained or retained.
During the term of the Franchise Agreement and for two years following its expiration or termination, the franchisee is prohibited from offering services to any customer the franchisee contacted or had contact with on behalf of Focus Cfo. Additionally, franchisees cannot attempt to persuade any such customer from reducing or ceasing their business with Focus Cfo. This restriction does not apply to services that do not directly or indirectly compete with Focus Cfo's business.
Furthermore, franchisees are prohibited from encouraging, soliciting, recommending, or attempting to influence any Focus Cfo customer to engage any person or entity other than Focus Cfo or its affiliates for services provided by Focus Cfo. This comprehensive non-solicitation clause aims to protect Focus Cfo's client base and business interests by preventing franchisees from diverting clients or prospective clients to competing ventures during and after the franchise term.