What section of the Focus Cfo Franchise Agreement discusses termination by the franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
stem or the Focus CFO Marks or you are charged with or indicted for a felony, or |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| convicted of a misdemeanor offense involving moral turpitude; (ix) you fail to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business. With respect to a Transfer of the Franchisee's Book of Business, the Franchise Agreement will immediately terminate twelve (12) months from the date of transfer if not terminated earlier. Focus CFO is not required to give you prior notice or the right to cure for these events. | ||
| i. Your obligations on termination/non-renewal | Sections 11, 13, 15 | Return of all information, including confidential and proprietary information, including without limitation that related to our clients, potential clients, standard documents or templates, bulk marketing materials, policies or procedures, clients or contacts, including original materials, photocopies, databases, computer files that you receive either from Focus CFO, directly or indirectly, including from our service providers, or from our clients or prospective clients. Comply with non-solicitation and non-compete clauses. Not use or disclose Focus CFO confidential information. Indemnify Focus CFO for breaches, untrue representations, negligence or intentional misconduct. |
| j. Assignment of | Section 12 | No restriction on Focus CFO's right to assign. |
| contract | ||
| by Focus CFO | ||
| k. "Transfer" by you – definition | Section 12, Att. A | "Transfer" shall mean to sell, convey or otherwise dispose of franchisee's Book of Business |
| l. Focus CFO's approval of transfer by Franchisee | Section 12.1 | Area Presidents are permitted to transfer their franchise to another Area President under certain conditions. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Item 17 outlines various provisions related to the franchise agreement, including termination. While the table summarizes several termination-related scenarios, it does not explicitly state a section number that allows the franchisee to terminate the agreement at will. However, it does mention conditions under which Focus Cfo can terminate the agreement, such as if the franchisee is convicted of a misdemeanor involving moral turpitude or fails to comply with applicable regulations. Additionally, the agreement terminates automatically twelve months after a transfer of the franchisee's book of business if not terminated earlier.
Section 11 of the Focus Cfo Franchise Agreement outlines the franchisee's obligations upon termination or non-renewal, which include returning all confidential information, complying with non-solicitation and non-compete clauses, and indemnifying Focus Cfo for breaches or misconduct. Section 12 discusses the conditions for Focus Cfo's approval of assignment, stating that the Franchise Agreement automatically terminates twelve (12) months from the date of transfer, if not terminated by the Transferring Area President at the date of transfer.
Prospective Focus Cfo franchisees should carefully review Item 17 and the referenced sections within the Franchise Agreement to fully understand the circumstances under which either the franchisee or Focus Cfo can terminate the agreement. It is important to note the obligations that arise upon termination, such as the handling of confidential information and compliance with non-compete clauses. Franchisees should also be aware of the conditions under which a transfer of the franchise can occur and how that impacts the termination of the agreement.
To gain a comprehensive understanding, a potential franchisee should ask Focus Cfo for specific details regarding the conditions under which a franchisee can voluntarily terminate the agreement, any associated penalties or fees, and the process for doing so. This will help ensure they are fully informed about their rights and responsibilities related to termination.