What is the required action of Focus Cfo if they terminate the agreement for cause?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
notice of such termination so that Focus CFO has additional time to work with Franchisee and transition Focus CFO clients to other franchisees or licensees.
- 11.2. Termination by Franchisor for Cause. Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause. For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.
- 11.3. Termination by Franchisor for Failure to Perform.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, if Focus Cfo terminates the franchise agreement for cause, they must provide written notice to the franchisee. This notice must specify the particulars of the circumstances that constitute the basis for the termination.
The FDD defines "Cause" as several different actions including: if the franchisee becomes insolvent, files for bankruptcy, makes an assignment for the benefit of its creditors or takes action or inaction that defames or disparages Focus CFO. Cause also includes if the franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct, engages in behavior that caused physical, mental or emotional harm to an individual or property or makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO.
Additionally, cause is defined as if the franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business. If Focus CFO terminates the agreement for cause, the Franchise Fee will not be refunded.