What section of the Focus Cfo Franchise Agreement outlines the definition of 'cause' for termination?
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; |
| 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; |
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, the definition of 'cause' for termination is outlined in Sections 11.2 and 11.3 of the Franchise Agreement, as well as Section 12.1.6. Specifically, Section 11.3 details defaults that can be cured, while Sections 11.2 and 12.1.6 describe defaults that cannot be cured. These sections are important for a prospective franchisee to understand because they specify the conditions under which Focus Cfo can terminate the Franchise Agreement.
Section 11.3 lists several defaults that can be cured, such as breaching any provision of the Franchise Agreement (with a 30-day cure period) or failing to meet Focus Cfo's Performance Standards after receiving a 30-day notice. The Performance Standards include complying with Focus Cfo's policies in the Playbook, participating 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 Focus Cfo's policies and directives. Accumulating three violations of these standards also constitutes a cause for termination.
Sections 11.2 and 12.1.6 outline defaults that cannot be cured, including 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, making unauthorized use of Focus Cfo Marks or confidential information, engaging in fraud or embezzlement, being charged with a felony, or failing to comply with applicable regulations. Focus Cfo is not required to give prior notice or a chance to cure for these events. Understanding these distinctions is crucial, as non-curable defaults can lead to immediate termination of the franchise agreement.