What are the restrictions on a Focus Cfo franchisee's ability to partner with other businesses, considering their obligations in Item 9 and the non-exclusive territory (Item 12)?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term of this Agreement and any successor terms, unless authorized in writing by Focus CFO, Franchisee shall not advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party. Franchisee is, however, free to be involved in other business
activities, provided Franchisee is able to fully satisfy the Performance Standards required by this Agreement and is in compliance with Attachment E to the Franchise Agreement.
13.2.
Post-Termination Non-Compete.
For a period of two (2) years after expiration or early termination of this Agreement or any successor Franchise Agreement, unless authorized in writing by Focus CFO, Franchisee shall not (i) advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party within the Home Territory or any Secondary Territory, or (ii) advertise, promote, offer to provide or provide services to any Focus CFO client that Franchisee has previously serviced regardless of location.
- 13.3.
Non-Solicitation.
Franchisee acknowledges that all clients and prospective clients of Focus CFO (the "Customers") and all CFOs and Area Presidents, whether or not such Customers or CFOs and Area Presidents are obtained or retained through Franchisee's efforts, shall be the Customers, Franchisees, Licensees and independent contractors of Focus CFO.
Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
- 13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, franchisees have some limitations on partnering with other businesses, primarily related to non-compete clauses and client solicitation. During the term of the agreement, Focus Cfo franchisees cannot offer services that directly compete with Focus Cfo's business unless they receive written authorization from Focus Cfo. However, franchisees are permitted to engage in other business activities as long as they meet the performance standards outlined in the Franchise Agreement and comply with Attachment E.
After the franchise agreement expires or is terminated, the franchisee faces further restrictions. For two years, they cannot offer competitive services within their Home Territory or any Secondary Territory they purchased. Additionally, they are prohibited from soliciting or providing services to any Focus Cfo client they previously served, regardless of the client's location. This post-termination non-compete clause is designed to protect Focus Cfo's client base and market share.
Focus Cfo also designates that all clients and prospective clients, as well as CFOs and Area Presidents, belong to Focus Cfo, regardless of whether the franchisee initially obtained or retained them. During the term of the agreement and for two years after, franchisees are prohibited from employing or engaging any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of Focus Cfo or its affiliates. These restrictions aim to prevent franchisees from leveraging their knowledge and relationships gained during the franchise term to unfairly compete with Focus Cfo after the agreement ends.