What is the purpose of the termination fee charged to Focus Cfo clients who hire Focus Cfo franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Further, Franchisee agrees that if Franchisee accepts such an offer with any Focus CFO client, Franchisee is not authorized to begin working directly for the client until either Franchisee or the Focus CFO client, pay directly to Focus CFO the termination fee which is set forth in the professional service agreement with the Focus CFO client. Franchisee acknowledges and agrees Focus CFO's damages and lost opportunities upon termination of the Agreement will be difficult to ascertain and that the fee which has been agreed to between the Focus CFO client and Focus CFO is a reasonable estimate thereof and does not constitute a penalty or forfeiture. Franchisee also acknowled
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus CFO clients agree not to discuss potential employment arrangements or make offers to Focus CFO franchisees they've met or worked with without first discussing it with Focus CFO. If a Focus CFO client makes an offer to a franchisee that the franchisee has personally met for the first time since joining Focus CFO, the franchisee must notify Focus CFO.
Furthermore, the franchisee cannot begin working directly for the client until either the franchisee or the Focus CFO client pays Focus CFO the termination fee outlined in the professional service agreement with the client. This fee is in place to compensate Focus CFO for the loss of business and the potential disruption to their established client relationships when a franchisee is hired by a client.
The agreement emphasizes that Focus CFO's damages and lost opportunities are difficult to ascertain upon termination, and the agreed-upon fee between the Focus CFO client and Focus CFO is considered a reasonable estimate of these damages, not a penalty. The minimum termination fee outlined in these agreements with Focus CFO clients is $80,000 and is subject to future increases.