What section of the Focus Cfo Franchise Agreement discusses renewal or extension of the term?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
ould read these provisions in the agreements attached to this Disclosure Document.
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 2.1 | Term is 10 years. |
| b. Renewal or extension | Section 2.2 | If, upon expiration of the Initial Term of the |
| of the term | franchise, you are still performing as an Area | |
| Provision | Section in Franchise Agreement | Summary |
| Agreement | President then you shall have the right to renew the franchise if certain conditions are met. | |
| c. Requirements for you to | Section 2.3 | (i) subject to state law, you execute general releases in a form similar to that in Exhibit G; (ii) you have complied with all provisions of the Franchise Agreement; (iii) you have satisfied all Performance Standards as set forth in Attachment E to the Franchise Agreement; (iv) you are not in default of any provisions of the Franchise Agreement or any other agreement between Franchisee and Focus CFO; and (v) we reserve the right to have you sign a new Franchise Agreement which may have terms that are materially different and may require additional training and certification requireme |
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 2.2 of the Franchise Agreement addresses the renewal or extension of the franchise term. If a Focus Cfo franchisee is still performing as an Area President upon the expiration of the initial 10-year term, they have the right to renew the franchise, provided certain conditions are met.
To renew the franchise with Focus Cfo, Section 2.3 outlines several requirements. These include executing general releases, complying with all provisions of the Franchise Agreement, satisfying all Performance Standards as detailed in Attachment E, and not being in default of any agreement with Focus CFO. Additionally, Focus CFO reserves the right to require the franchisee to sign a new Franchise Agreement, which may contain materially different terms and additional training and certification requirements.
Furthermore, a renewal fee of $2,500 is required to be paid to Focus Cfo to renew the franchise. This fee is relatively low compared to the initial franchise fee, which is common in the franchise industry. However, the potential for a new Franchise Agreement with different terms introduces an element of uncertainty for franchisees considering renewal. Prospective franchisees should carefully review Attachment E regarding Performance Standards and inquire about potential changes in the new Franchise Agreement to fully understand the renewal conditions.