What does 'Transfer' mean in the context of a Focus Cfo franchise?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| k. "Transfer" by you – definition | Section 12, Att. A | "Transfer" shall mean to sell, convey or otherwise dispose of franchisee's Book of Business | | m. Conditions for Focus CFO approval of assignment | Section 12.1 | (i) Focus CFO provides consent in writing to the transfer; (ii) Area President who desires to transfer their franchise ("Transferring Area President") has been a Franchisee for at least two (2) years and developed a Book of Business of at least $500,000 of collected (cash basis) revenue during the twelve (12) months preceding the desired transfer; (iii) Transferring Area President has identified another individual who is either an existing Focus CFO Franchisee prior to the transfer and not in breach of his or her Franchise Agreement or is willing to enter into the then current Franchise Agreement; (iv) Transferring Area President provides at least 90 days' written notice of Transfer to Focus CFO if the Transfer is to an existing Franchisee and at least 120 days' notice if to a new Franchisee; (v) Transferring Area President and Recipient Area President shall provide Focus CFO a summary of all the material terms and conditions upon which the Transfer is to be made; (v) Transferring Area President executes a general release. Transferring Area President's Franchise Agreement automatically terminates twelve (12) months from the date of transfer, if not terminated by the Transferring Area President at the date of transfer. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 27–32)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a 'Transfer' specifically refers to the act of selling, conveying, or otherwise disposing of the franchisee's Book of Business. This definition is crucial for understanding the conditions and restrictions placed on a Focus Cfo franchisee's ability to exit the business or change ownership.
For a Focus Cfo Area President to transfer their franchise, several conditions must be met. First, Focus Cfo must provide written consent. Second, the Area President must have been a franchisee for at least two years and developed a Book of Business generating at least $500,000 in collected revenue during the 12 months preceding the transfer. Third, the recipient must be an existing, compliant Focus Cfo franchisee or someone willing to enter into the current Franchise Agreement. The Transferring Area President must also provide written notice to Focus Cfo at least 90 days before the transfer if it's to an existing franchisee, or 120 days if it's to a new franchisee, and provide a summary of the transfer terms. Finally, the Transferring Area President must execute a general release.
It's important to note that if a Focus Cfo franchisee transfers their Book of Business, their Franchise Agreement automatically terminates twelve months from the date of transfer, unless terminated earlier by the franchisee. This provision ensures a clean break and prevents potential conflicts of interest after the transfer. These conditions are typical in franchise agreements to maintain brand consistency and protect the franchisor's interests during ownership changes.