After a transfer, who is responsible for making payments owed by Focus CFO to the Recipient Area President?

According to Focus CFO's 2025 Franchise Disclosure Document, after a franchise is transferred, Focus CFO is responsible for making any payments owed to the Recipient Area President under the terms of the then-current Franchise Agreement. However, the responsibility for ongoing payments, if any, to the Transferring Area President can be assigned to either Focus CFO or the Recipient Area President. This arrangement is based on a written agreement among the Transferring Area President, the Recipient Area President, and Focus CFO.

This means that a new Focus CFO franchisee (the Recipient Area President) will receive payments directly from Focus CFO after the transfer, according to the existing franchise agreement. This simplifies the payment process for the new franchisee, as they do not have to rely on the previous franchisee for payments owed by Focus CFO.

However, any ongoing payments to the previous franchisee (the Transferring Area President) are subject to a separate agreement. This agreement determines whether Focus CFO or the new franchisee will be responsible for those payments. This arrangement provides flexibility but also requires careful negotiation and documentation to ensure clarity and avoid disputes after the transfer. It is important for prospective franchisees to understand the terms of any transfer agreement and how it affects their financial obligations and receipts.