Does Focus Cfo have any restrictions on assigning its contract?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
CFO for breaches, untrue representations, negligence or intentional misconduct. | | j. Assignment of | Section 12 | No restriction on Focus CFO's right to assign. | | contract | | | | by Focus CFO | | | | k. "Transfer" by you – definition | Section 12, Att. A | "Transfer" shall mean to sell, convey or otherwise dispose of franchisee's Book of Business | | l. Focus CFO's approval of transfer by Franchisee | Section 12.1 | Area Presidents are permitted to transfer their franchise to another Area President under certain conditions. | | Provision | Agreement | Summary | |---------------------------------------------------------------------|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | m. Conditions for Focus CFO approval of assignment | Section 12.1 | (i) Focus CFO provides consent in writing to the transfer; (ii) Area President who desires to transfer their franchise ("Transferring Area President") has been a Franchisee for at least two (2) years and developed a Book of Business of at least $500,000 of collected (cash basis) revenue during the twelve (12) months preceding the desired transfer; (iii) Transferring Area President has identified another individual who is either an existing Focus CFO Franchisee prior to the transfer and not in breach of his or her Franchise Agreement or is willing to enter into the then current Franchise Agreement; (iv) Transferring Area President provides at least 90 days' written notice of Transfer to Focus CFO if the Transfer is to an existing Franchisee and at least 120 days' notice if to a new Franchisee; (v) Transferring Area President and Recipient Area President shall provide Focus CFO a summary of all the material terms and conditions upon which the Transfer is to be made; (v) Transferring Area President executes a general release. Transferring Area President's Franchise Agreement automatically terminates twelve (12) months from the date of transf
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO faces no restrictions on assigning its contract. However, franchisees looking to transfer their 'Book of Business' (defined as selling, conveying, or disposing of it) must adhere to specific conditions to gain Focus CFO's approval.
Specifically, to gain Focus CFO's approval, a transferring Area President must meet several requirements. First, Focus CFO must provide written consent to the transfer. Second, the Area President must have been a franchisee for at least two years and have generated at least $500,000 in collected revenue during the 12 months preceding the desired transfer. Third, the transferring Area President must identify a recipient who is either an existing, compliant Focus CFO franchisee or someone willing to enter into the current Franchise Agreement.
Additionally, the transferring Area President must provide Focus CFO with written notice of the transfer. The notice must be at least 90 days in advance if the transfer is to an existing franchisee, and at least 120 days if the transfer is to a new franchisee. Both the transferring and recipient Area Presidents must provide Focus CFO with a summary of all material terms and conditions of the transfer. Finally, the transferring Area President must execute a general release. It's important to note that the Transferring Area President's Franchise Agreement automatically terminates twelve months from the date of transfer, if not terminated by the Transferring Area President at the date of transfer.
These conditions are fairly typical in franchising, as franchisors want to ensure that any transfer of a franchise is to a qualified party who will maintain the brand's standards and protect its reputation. The revenue requirement ensures that the franchise is a viable business before it is transferred. The notice period allows Focus CFO to properly vet the potential transferee and ensure a smooth transition. The general release protects Focus CFO from any future claims by the transferring franchisee.