Does the non-solicitation clause apply during the term of the Focus Cfo franchise agreement?
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 is in effect during the entire term of the Franchise Agreement and any successor franchise terms. This means that throughout the duration of the agreement, the franchisee is restricted from soliciting Focus Cfo's clients, franchisees, licensees, and independent contractors.
Specifically, the franchisee is prohibited from directly or indirectly employing or engaging any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of Focus Cfo or its affiliates. This restriction applies whether the franchisee acts on their own behalf or in conjunction with any other person or entity.
Furthermore, this non-solicitation obligation extends for a period of two years following the expiration or early termination of the Franchise Agreement. Therefore, even after the franchise relationship ends, the franchisee remains bound by the non-solicitation clause for an additional two years, unless Focus Cfo provides written authorization to the contrary.