Under what circumstances is Focus Cfo not deemed to be in default of the franchise agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
If Franchisee fails to cure the default of the Performance Standards within thirty (30) days and such failure continues beyond the cure period, or Franchisee accumulates three (3) violations of any individual or combination of Performance Standards outlined in Attachment E, Focus CFO will have the right to terminate this Agreement by written notice to Franchisee without any further opportunity to cure.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee generally has 30 days after receiving notice of default from Focus Cfo to correct any breach of the Franchise Agreement or any other agreement with Focus Cfo or its affiliates. If the franchisee successfully addresses the breach within this 30-day period, Focus Cfo will not proceed with terminating the agreement. This cure period provides an opportunity for franchisees to rectify issues and maintain their franchise.
However, there are exceptions to this cure period. If the termination is for cause as defined in Section 11.2 of the agreement, the franchisee may not have the opportunity to cure the default. Section 11.2 lists several conditions that constitute cause, such as insolvency, bankruptcy, actions that defame Focus Cfo, dishonesty, or failure to comply with applicable regulations. In these instances, Focus Cfo has the right to terminate the agreement immediately upon written notice.
Additionally, if a Focus Cfo franchisee fails to meet the performance standards outlined in Attachment E of the agreement, they will receive written notice and typically have 30 days to correct the deficiency. However, if the franchisee fails to cure the performance standard default within this period, or if they accumulate three violations of any combination of performance standards, Focus Cfo can terminate the agreement without offering any further opportunity to cure. These performance standards are detailed in Attachment E and cover areas such as compliance with Focus Cfo's policies, participation in training, adherence to core values, collaboration with other franchisees, and competence in business development and client support.