What specific activities are prohibited under the post-termination non-compete for a Focus Cfo franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of two (2) years after expiration or early termination of this Agreement or any successor Franchise Agreement, unless authorized in writing by Focus CFO, Franchisee shall not (i) advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party within the Home Territory or any Secondary Territory, or (ii) advertise, promote, offer to provide or provide services to any Focus CFO client that Franchisee has previously serviced regardless of location.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, for two years after the franchise agreement expires or terminates, a franchisee is restricted from certain competitive actions, unless Focus CFO provides written authorization. Specifically, the franchisee cannot advertise, promote, offer, or provide services that compete with Focus CFO's business to a third party within their Home Territory or any Secondary Territory.
Additionally, the franchisee is prohibited from advertising, promoting, offering, or providing services to any Focus CFO client that the franchisee has previously serviced, regardless of the client's location. This prevents a former franchisee from leveraging their established relationships with Focus CFO clients to start a competing business or join another firm.
These restrictions are designed to protect Focus CFO's client base and market presence. The non-compete aims to prevent a franchisee from using the knowledge and relationships gained during their time with Focus CFO to unfairly compete against the franchisor after the agreement ends. Franchisees should carefully consider these limitations before entering into a franchise agreement, as they could significantly impact their business opportunities for two years following termination or expiration.