Is there a time limit on the non-disparagement clause after the Focus Cfo franchise agreement is terminated?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees that he or she will not, either during the term of this Agreement or at any time following the termination hereof for any reason, disparage Focus CFO, the System or any officer, employee, licensee or franchisee of Focus CFO, or any business practice employed by Focus CFO or any officer, employee, licensee or franchisee thereof through any means of communication, including but not limited to the Internet, blog posts, reviews or social media platforms.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the non-disparagement clause extends indefinitely beyond the termination of the franchise agreement. As stated in section 13.5, the franchisee agrees not to disparage Focus Cfo, its system, or its personnel at any time following the termination of the agreement, regardless of the reason for termination. This restriction covers all forms of communication, including the internet, blog posts, reviews, and social media platforms.
This perpetual restriction means that even after a franchisee leaves the Focus Cfo system, they are legally obligated to refrain from making any negative or critical statements about the company. This is a significant obligation that could impact a former franchisee's ability to freely express their opinions or experiences related to the franchise.
While non-disparagement clauses are common in franchise agreements to protect the brand's reputation, the indefinite nature of this clause is more restrictive than many other franchise systems, which often have time limits on such restrictions. Prospective franchisees should carefully consider the implications of this perpetual obligation and seek legal advice to fully understand their rights and responsibilities.