Is there an exception to the restriction on providing services to Focus Cfo customers?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
13.3.2. solicit, approach, endeavor to entice away or have discussions or other communications (regardless of who initiates such discussions or communications) with any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group, for the purpose of causing that individual or company to terminate its relationship with the Focus CFO Consolidated Group to become employed or associated with any person, business or organization that offers services that are the same as or substantially similar to the services or products offered by Focus CFO or any of its affiliates;
13.3.3. offer to provide or provide services to any Customer Franchisee has contacted or had contact with on behalf of Focus CFO or attempt to cause any such Customer not to do business or to decrease the amount of business done with Focus CFO.
The restrictions contained in this subsection shall not apply to services which are not, directly or indirectly, in competition with the business then being conducted by Focus CFO; or
- 13.3.4. encourage, solicit, recommend or otherwise attempt to induce or influence any Customer of Focus CFO, to engage any person or entity other than Focus CFO,
or any of its respective affiliates, to perform the types of services provided by Focus CFO.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, there is an exception to the restriction on providing services to Focus Cfo customers. Franchisees are restricted from offering services to any customer they contacted on behalf of Focus Cfo or from attempting to dissuade customers from doing business with Focus Cfo. However, this restriction does not apply to services that do not directly or indirectly compete with the services offered by Focus Cfo.
This means a Focus Cfo franchisee can provide services to Focus Cfo customers if those services are distinctly different from the CFO services Focus Cfo provides. This exception allows franchisees to potentially diversify their service offerings without violating the non-solicitation agreement, as long as these additional services do not encroach on Focus Cfo's core business.
It is important for prospective franchisees to fully understand what constitutes a competitive service. Focus Cfo has the discretion to determine what services are considered competitive, so franchisees should seek clarity on this matter to avoid inadvertently violating the agreement. Franchisees should also seek legal counsel to fully understand the scope of the non-compete and non-solicitation clauses and the implications of this exception.