Is there any exception to the 30-day cure period for breaches of the Focus Cfo franchise agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
notice of such termination so that Focus CFO has additional time to work with Franchisee and transition Focus CFO clients to other franchisees or licensees.
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.
11.3. Termination by Franchisor for Failure to Perform. Focus CFO has the right to terminate this Agreement for cause due to Franchisee's failure to meet Focus CFO's Performance Standards ("Failure to Perform").
11.3.1. Except as provided in Section 11.2, Franchisee will have thirty (30) days from receipt of notice of default from Focus CFO to cure any breach of this Agreement or any other agreement with Focus CFO or any Focus CFO affiliate. If Franchisee fails to cure the breach within the thirty (30) day period, Focus CFO will have the right to terminate this Agreement by written notice to Franchisee without any further opportunity to cure.
11.3.2. Franchisee is expected to meet certain Performance Standards as outlined in Attachment E. Focus CFO will provide written notice to Franchisee of any failure to meet these Performance Standards.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, there are exceptions to the standard 30-day cure period for breaches of the franchise agreement. Focus CFO can terminate the agreement immediately for cause, which includes situations such as franchisee insolvency, bankruptcy filings, actions that defame Focus CFO, dishonesty, misconduct, or failure to comply with regulations. In these instances, Focus CFO can terminate the agreement with written notice, without providing the franchisee an opportunity to cure the breach.
Additionally, if a Focus CFO franchisee fails to meet performance standards and does not correct the failure within 30 days after receiving notice, and the failure continues, or if the franchisee accumulates three violations of performance standards, Focus CFO can terminate the agreement without any further opportunity to cure. These performance standards are detailed in Attachment E of the franchise agreement and include compliance with Focus CFO's policies, participation in training sessions, adherence to core values, collaboration with other franchisees, following core processes, avoiding negligence, and following directives from Focus CFO or its clients.
Furthermore, the agreement can be terminated immediately upon the death of the Equity Owner. If the Equity Owner becomes physically or mentally disabled and unable to perform the required services for a period of 90 consecutive days, or for an aggregate of 120 days within a 180-day period, Focus CFO has the right to terminate the agreement with written notice. These stipulations outline specific circumstances where the franchisee does not have the typical 30-day period to rectify the breach, which could have significant implications for the franchisee's investment and business operations.