What is the scope of the non-disparagement clause for Focus Cfo franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees that he or she will not, either during the term of this Agreement or at any time following the termination hereof for any reason, disparage Focus CFO, the System or any officer, employee, licensee or franchisee of Focus CFO, or any business practice employed by Focus CFO or any officer, employee, licensee or franchisee thereof through any means of communication, including but not limited to the Internet, blog posts, reviews or social media platforms.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, franchisees are prohibited from disparaging Focus Cfo, the Focus Cfo system, or any officer, employee, licensee, or franchisee of Focus Cfo. This restriction applies both during the term of the Franchise Agreement and at any time after its termination, regardless of the reason for termination.
The non-disparagement clause extends to any business practice employed by Focus Cfo or its personnel. The restriction covers all means of communication, including but not limited to the Internet, blog posts, reviews, and social media platforms. This means a franchisee cannot post negative comments or reviews about Focus Cfo online, even after the franchise agreement ends.
This type of clause is common in franchise agreements to protect the brand's reputation. However, franchisees should be aware that this clause could limit their ability to express concerns or criticisms about the franchise, even if those concerns are legitimate. Prospective franchisees should consider the implications of this clause and seek legal advice if they have any concerns about its scope or enforceability.