Can Focus Cfo terminate the agreement if a franchisee engages in behavior which is abusive?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause.
For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo can terminate the franchise agreement immediately if a franchisee engages in abusive behavior. Specifically, Focus Cfo can terminate the agreement for cause if a franchisee engages in behavior that causes physical, mental, or emotional harm to an individual or property. This also includes behavior that is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal, or physical harassment), or otherwise inappropriate in a workplace or professional environment.
This means that if a Focus Cfo franchisee engages in any of the listed behaviors, Focus Cfo has the right to terminate the agreement immediately by providing written notice that specifies the particulars of the circumstances. This is a significant protection for Focus Cfo, its employees, and its clients, as it allows the company to quickly remove a franchisee who is engaging in harmful or inappropriate behavior.
It is important to note that Focus Cfo also has the right to take remedial or corrective actions as it deems expedient with respect to any action, suit, demand, claim, investigation, or proceeding if, in its sole judgment, there are grounds to believe any of the acts or circumstances listed in Section 11.2 or 11.3 have occurred. This gives Focus Cfo broad discretion to address any concerns about a franchisee's behavior, even before it rises to the level of termination.
Prospective franchisees should carefully consider this termination clause and ensure they understand the types of behavior that could lead to termination. They should also be aware that Focus Cfo has broad discretion to determine whether a franchisee's behavior warrants termination.