What is the relationship between the Focus CFO client's professional service agreement and the franchisee's employment?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO clients are restricted from offering employment to Focus Cfo franchisees they've met or worked with through their Focus Cfo arrangement without first discussing it with Focus CFO. If a Focus Cfo franchisee receives an employment offer from a client they met after joining Focus CFO, the franchisee must inform Focus CFO.
Furthermore, the Focus Cfo franchisee cannot begin working directly for the client until either the franchisee or the client pays a termination fee to Focus CFO, as specified in the professional service agreement (PSA) with the client. This policy is designed to protect Focus CFO's interests and revenue streams by ensuring they are compensated if a franchisee leaves to work directly for a client they were connected with through the franchise.
This arrangement has significant implications for prospective franchisees. While it doesn't prevent a franchisee from accepting employment with a client, it does impose a financial hurdle. The termination fee acts as a disincentive, potentially complicating negotiations and possibly deterring clients from hiring franchisees directly. Franchisees need to understand this condition and factor it into their career decisions and financial planning. The franchisee should seek to understand how the termination fee is calculated and what typical amounts are charged to clients in their PSA.