factual

What section of the Focus Cfo Franchise Agreement defines 'cause' for termination?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

FO does not have the right to terminate without cause. | | CFO without cause | | | | f. Termination by Focus | Section 11.2, 11.3 | We may terminate the Franchise Agreement if you default. If we terminate the Franchise Agreement following a default, your interest in the franchise will terminate. | | CFO with cause | | | | g. "Cause" defined - | Section 11.3 | You breach any provision of the Franchise Agreement or any other agreement with Focus CFO or any Focus CFO affiliate and you fail to cure the breach within thirty (30) days. You fail to meet Focus CFO's Performance Standards and such failure continues after receiving thirty (30) days' notice from Focus CFO of such failure to meet the standard, or you accumulate three (3) violations of any individual or combination of the standards, which include: (i) you must comply with Focus CFO's policies as outlined in the Playbook; (ii) you must participate in, or attend, at least 75% of the total required training sessions held by Focus CFO; | | defaults which can be | | | | cured | | | | Provision | Section in Franchise Agreement | Summary | |--------------------------------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | (iii) you must consistently demonstrate, follow, | | | | and abide by, the Company's Core Values as | | | | outlined on Focus CFO's website and in the | | | | Playbook; (iv) you must regularly collaborate | | | | with other Area Presidents and CFOs in your | | | | territory; (v) you must demonstrate an ability to | | | | follow | | | | the | | | | Company's | | | | core | | | | processes | | | | and | | | | procedures related to business development, new | | | | client acquisition, ongoing client support and | | | | client retention; (vi) you must not be negligent in | | | | the performance of the duties as outlined in the | | | | Franchise Agreement or as a result of any Focus | | | | CFO client arrangement; (vii) you must follow | | | | the policies or directives of Focus CFO, any | | | | Focus CFO affiliate or a Focus CFO client, as | | | | such policies or directives are established from | | h. "Cause" defined - defaults which cannot be cured | Section 11.2, 12.1.6 | time to time after written notice by Focus CFO. (i) You become insolvent; (ii) You file a petition in bankruptcy; (iii) You make an assignment for the benefit of your creditors; (iv) You take action or inaction that defames or disparages Focus CFO; (v) You engage in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of your duties or responsibilities required pursuant to the franchise agreement; (vi) you engage in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) you make any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO;

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, Section 11.3 of the Franchise Agreement defines 'cause' for termination related to defaults that can be cured. This section specifies that Focus Cfo may terminate the agreement if a franchisee breaches any provision of the Franchise Agreement or any other agreement with Focus Cfo or any Focus Cfo affiliate, and fails to cure the breach within thirty (30) days. It also covers failure to meet Focus Cfo's Performance Standards after receiving thirty (30) days' notice, or accumulating three (3) violations of any individual or combination of standards. These standards include compliance with Focus Cfo's policies in the Playbook, participation in at least 75% of required training sessions, consistently demonstrating the Company's Core Values, regularly collaborating with other Area Presidents and CFOs, following core processes and procedures, avoiding negligence in duty performance, and following policies or directives of Focus CFO or its affiliates.

Section 11.2 and 12.1.6 define 'cause' for termination related to defaults that cannot be cured. These include events such as insolvency, filing for bankruptcy, making an assignment for the benefit of creditors, defaming or disparaging Focus Cfo, engaging in dishonesty or willful misconduct, causing harm to individuals or property, making unauthorized use of Focus Cfo Marks or confidential information, engaging in fraud or embezzlement, or failing to comply with applicable regulations or laws. Focus CFO is not required to give prior notice or a chance to cure for these events.

Prospective franchisees should carefully review Sections 11.2, 11.3 and 12.1.6 of the Franchise Agreement to fully understand the circumstances under which Focus Cfo can terminate the agreement for cause. Understanding these provisions is crucial for maintaining compliance and avoiding potential termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.