What section of the Focus Cfo Franchise Agreement discusses termination by Focus CFO with cause?
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 requirements. A renewal fee of $2,500 is required to be paid by you to renew your franchise. |
| renew or extend | ||
| d. Termination by you | Section 11.1 | If you decide to terminate the Franchise Agreement, you will give at least sixty (60) days' notice prior to such termination. |
| e. Termination by Focus | None | Focus CFO 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; |
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 11.2 and 11.3 of the Franchise Agreement outline the circumstances under which Focus Cfo may terminate the agreement with cause. If Focus Cfo terminates the Franchise Agreement due to a default by the franchisee, the franchisee's interest in the franchise will be terminated.
Section 11.3 defines 'cause' as instances where the franchisee breaches any provision of the Franchise Agreement or any other agreement with Focus Cfo or its affiliates, and fails to rectify the breach within 30 days. Cause also includes failing to meet Focus Cfo's Performance Standards after receiving 30 days' notice, or accumulating three violations of any combination of performance standards. These standards include compliance with Focus Cfo's policies in the Playbook, participation in at least 75% of required training sessions, adherence to the company's core values, regular collaboration with other Area Presidents and CFOs, following company processes for business development and client support, avoiding negligence in duty performance, and following Focus Cfo's directives.
Additionally, Section 11.2 and 12.1.6 define 'cause' as defaults that cannot be cured. These include scenarios such as franchisee insolvency, filing for bankruptcy, making an assignment for the benefit of creditors, defaming Focus Cfo, engaging in dishonesty or willful misconduct, causing harm to individuals or property, unauthorized use of Focus Cfo's marks or confidential information, commission of fraud or embezzlement, being charged with a felony, or failing to comply with applicable regulations. In these uncureable instances, Focus Cfo is not required to provide prior notice or an opportunity to cure the default.
Prospective franchisees should carefully review Sections 11.2, 11.3, and 12.1.6 of the Franchise Agreement to fully understand the conditions that could lead to termination and the implications of such termination on their franchise rights.