Is Focus Cfo permitted to transfer its contractual obligations to the franchisee to another party?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4. Focus CFO's right to Transfer. Focus CFO has the right to Transfer and/or assign this Agreement to any successor business entity without prior notice to, or consent of the Franchisee. Franchisee agrees and acknowledges that in the event Focus CFO is acquired (whether through acquisition of assets, ownership interests or otherwise regardless of the form of the transaction), this Agreement may be assigned to any successor business entity. If the successor business entity decides to stop offering franchises, the successor entity has the right to terminate this Agreement.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo has the right to transfer and/or assign the Franchise Agreement to any successor business entity without needing prior notice to or consent from the franchisee. This includes situations where Focus Cfo is acquired through asset acquisition, ownership interests, or other transaction forms.
In the event of an acquisition, the agreement can be assigned to the new business entity. However, if the successor business entity decides to discontinue offering franchises, it retains the right to terminate the existing Franchise Agreement.
This clause means a potential Focus Cfo franchisee should recognize that the terms of their agreement could be subject to change if Focus Cfo is acquired or undergoes a significant business change. The franchisee's rights are subordinate to Focus Cfo's ability to transfer the agreement, which is a fairly standard practice in franchising to allow for business flexibility and potential growth through mergers and acquisitions.