Does Focus Cfo have the right of first refusal to purchase a Focus Cfo franchise?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1.4. The Transferring Area President provides to Focus CFO at least ninety (90) days' advance written notice of the Transfer if to an existing franchisee and at least 120 days' notice if to a new franchisee;
- 12.1.5. The Transferring Area President and the Recipient Area President shall provide Focus CFO a summary of all material terms and conditions upon which the Transfer is to be made, including but not limited to the purchase price to be paid by the Recipient Area President to the Transferring Area President, if any, and any agreement to split the revenue from the Book of Business among the Transferring Area President and Recipient Area President, including the percentage split and for how long; and
- 12.1.6. The Transferring Area President's Franchise Agreement automatically terminates twelve (12) months from the date of transfer, if not terminated by the Transferring Area President at the date of transfer. To the extent permitted by applicable law, the Transferring Area President shall execute a general release on the date of termination.
- 12.2. Post-Transfer Payment. Following the Transfer, Focus CFO shall be responsible for making any payments owed by Focus CFO to the Recipient Area President under the terms of the then-current Franchise Agreement. Either Focus CFO or the Recipient Area President can be responsible for making ongoing payments, if any, to the Transferring Area President, based on the written agreement of the Transferring Area President, the Recipient Area President and Focus CFO.
- 12.3. Consent by Focus CFO Required. The Transferring Area President shall not Transfer all or any of their interest in the Franchise or in any Book of Business, without obtaining the prior written consent of Focus CFO. Focus CFO will not unreasonably withhold its consent to the Transfer provided the above criteria has been met.
- 12.4. Focus CFO's right to Transfer. Focus CFO has the right to Transfer and/or assign this Agreement to any successor business entity without prior notice to, or consent of the Franchisee. Franchisee agrees and acknowledges that in the event Focus CFO is acquired (whether through acquisition of assets, ownership interests or otherwise regardless of the form of the transaction), this Agreement may be assigned to any successor business entity. If the successor business entity decides to stop offering franchises, the successor entity has the right to terminate this Agreement.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not explicitly state that Focus Cfo has a right of first refusal to purchase a Focus Cfo franchise. However, the document does outline the conditions under which a franchisee can transfer their interest in the franchise or book of business.
Specifically, Section 12.3 states that a franchisee cannot transfer their interest in the franchise or book of business without prior written consent from Focus Cfo, and that Focus Cfo will not unreasonably withhold consent if certain criteria are met. These criteria include providing Focus Cfo with advance written notice of the transfer (90 days if to an existing franchisee, 120 days if to a new franchisee) and a summary of all material terms and conditions of the transfer.
While this section doesn't directly address a right of first refusal, it does give Focus Cfo significant oversight and control over franchise transfers. A prospective franchisee should clarify with Focus Cfo whether this consent process could effectively function as a right of first refusal, allowing Focus Cfo to purchase the franchise before it is offered to another party.