Who is responsible for paying the termination fee to Focus Cfo when a client hires a franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a Focus Cfo client extends an employment offer to a franchisee who has personally met the client since joining Focus Cfo, the franchisee must notify Focus Cfo of the offer. The franchisee is not authorized to begin working directly for the client until either the franchisee or the Focus Cfo client pays the termination fee directly to Focus Cfo. The termination fee is outlined in the professional service agreement with the Focus Cfo client.
This policy ensures that Focus Cfo is compensated for the loss of business resulting from the franchisee's departure to work directly for a client. It also protects Focus Cfo's investment in training and supporting the franchisee. The franchisee benefits by having the opportunity to be hired by a client, potentially leading to a more stable and lucrative career.
The agreement stipulates that Focus CFO clients agree not to discuss potential employment arrangements or make offers to Focus CFO franchisees they've met or worked with through their Focus CFO arrangement without first discussing it with Focus CFO. This clause aims to maintain transparency and control over employment transitions, ensuring Focus CFO is informed and can manage the process appropriately. Franchisees should be aware of this policy and its implications for their career prospects and financial obligations.