Which section of the Focus Cfo Franchise Agreement covers post-termination obligations?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Agreement.
- 11.5.4. Except as set forth in this Section 11.5, no other payment shall be made to Franchisee following termination of this Agreement.
- 11.6. Franchisee's Obligations Upon Termination. Upon termination or expiration of this Agreement, all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 11.6.1. Immediately cease to operate as an Area President and shall not thereafter, directly or indirectly, represent to the public, clients or hold himself/herself out as a present Franchisee or independent contractor of Focus CFO;
- 11.6.2. Cease to use the trade secrets, confidential information, and the Focus CFO Marks including, without limitation, all signs, slogans, symbols, logos, advertising materials, stationary, forms and other items which display or are associated with the Marks;
- 11.6.3. Immediately return to Focus CFO all confidential information including but not limited to access to the Playbook, records, files, instructions, brochures, agreements, disclosure statements and any and all other materials provided by Focus CFO to Franchisee relating to the operation of Focus CFO (all of which are acknowledged to be Focus CFO's property); and
- 11.6.4. Comply with all other applicable provisions in this Agreement.
- 11.7. To the extent permitted by applicable law, Focus CFO has the right to require Franchisee to sign a release in connection with any refund of the Franchisee Fee.
12. TRANSFER
12.1. Franchisee may sell, convey, or otherwise transfer its Franchise ("Transferring Area President") to another individual ("Recipient Area President") so long as the following conditions are satisfied:
Conditions to Transfer by Franchisee:
- 12.1.1. All transfers are required to be approved by Focus CFO in writing prior to the transfer occurring.
- 12.1.2. The Transferring Area President must have been a Franchisee for at least (2) years and developed a Book of Business, as defined in Attachment A of this Agreement, with at least Five Hundred Thousand Dollars ($500,000) of collected (cash basis) revenue during the twelve (12) months preceding the desired Transfer;
- 12.1.3. The Recipient Area President (i) must be an existing Focus CFO franchisee prior to the Transfer and not be in breach of his or her Franchise Agreement or (ii) an
individual interested in becoming a franchisee who enters into the then-current Franchise Agreement with Focus CFO;
- 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.
Source: Item 9 — Franchisee's Obligations (FDD page 16)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, several sections of the Franchise Agreement outline the franchisee's obligations after termination or expiration of the agreement. Section 11.6 details the franchisee's immediate responsibilities upon termination, including ceasing operations as an Area President, discontinuing the use of Focus Cfo's trade secrets and marks, and returning all confidential information and materials. Additionally, Section 13 addresses non-compete and non-solicitation obligations that extend beyond the termination date. These sections ensure the protection of Focus Cfo's brand, confidential information, and client relationships even after a franchise agreement ends.
Specifically, Section 11.6.4 states that the franchisee must comply with all other applicable provisions in the agreement, indicating that other sections may also impose post-termination duties. Section 13.2 outlines a post-termination non-compete clause, preventing the franchisee from engaging in competitive services within their territory or soliciting Focus Cfo clients they previously served for two years after the agreement ends. Similarly, Section 13.3 restricts the franchisee from employing or engaging any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of Focus Cfo for a period of two years following termination.
These post-termination obligations are typical in franchise agreements to protect the franchisor's business model and proprietary information. For a prospective Focus Cfo franchisee, understanding these obligations is crucial. It means that upon leaving the franchise system, they will be restricted from operating a competing business or soliciting Focus Cfo's clients and personnel for a defined period. This could impact their future career options and business ventures. The franchisee should carefully review these sections with legal counsel to fully grasp the scope and implications of these restrictions.