Can Focus Cfo terminate the franchise agreement if the franchisee engages in any act of dishonesty?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.
Termination by Franchisor for Cause.
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 the franchisee engages in any act of dishonesty. Specifically, Focus Cfo can terminate the agreement for cause, with "cause" defined to include a franchisee engaging in any act of dishonesty.
Focus Cfo must provide written notice to the franchisee, specifying the particulars of the circumstances that form the basis for the termination. This means Focus Cfo needs to clearly explain what dishonest acts the franchisee committed when issuing the termination notice.
This clause protects Focus Cfo's brand and reputation by ensuring they can quickly remove franchisees who act dishonestly. For a prospective franchisee, this highlights the importance of maintaining ethical business practices and transparency in all dealings related to the Focus Cfo franchise.