factual

Under what circumstances can Focus Cfo terminate the franchise agreement immediately for cause?

Focus_Cfo Franchise · 2025 FDD

Answer from 2025 FDD Document

Focus CFO has the right to terminate this Agreement effective immediately for cause upon written notice to Franchisee specifying the particulars of the circumstances forming the basis for cause.

For purposes of this Agreement, "Cause" is defined as: (i) Franchisee becomes insolvent; (ii) Franchisee files a petition in bankruptcy; (iii) Franchisee makes an assignment for the benefit of its creditors; (iv) Franchisee takes action or inaction that defames or disparages Focus CFO; (v) Franchisee engages in any act of dishonesty, misrepresentation, material neglect of duty, or willful misconduct in connection with the performance of Franchisee's duties or responsibilities required pursuant to this Agreement; (vi) Franchisee engages in any behavior that caused physical, mental or emotional harm to an individual or property or behavior which is coercive, threatening, abusive, exploitive, harassing (including sexual, verbal or physical harassment) or which is otherwise inappropriate in a workplace or professional environment; (vii) Franchisee makes any unauthorized use of the Focus CFO Marks or unauthorized use or disclosure of any confidential information of Focus CFO; (viii) Franchisee engages in or is accused of the commission of an act or omission constituting or involving fraud, embezzlement or other crime which could affect the reputation of Focus CFO, the Focus CFO System or the Focus CFO Marks or Franchisee is charged with or indicted for a felony, or convicted of a misdemeanor offense involving moral turpitude; or (ix) Franchisee fails to comply with any applicable federal, state or local regulations or laws relating to the Franchise, the CFO Services or Focus CFO's business.

Source: Item 23 — Receipts (FDD pages 37–126)

What This Means (2025 FDD)

According to Focus Cfo's 2025 Franchise Disclosure Document, Focus Cfo can terminate the franchise agreement immediately for cause. This termination is effective upon written notice to the franchisee, which must specify the particulars of the circumstances that constitute the cause.

The FDD defines "Cause" as several different scenarios. These include the franchisee becoming insolvent, filing for bankruptcy, or making an assignment for the benefit of creditors. Additionally, Focus Cfo can terminate the agreement if the franchisee takes action or inaction that defames or disparages Focus Cfo, or engages in dishonesty, misrepresentation, material neglect of duty, or willful misconduct related to their duties under the agreement.

Further reasons for immediate termination include the franchisee engaging in behavior that causes physical, mental, or emotional harm to an individual or property, or any coercive, threatening, abusive, exploitive, or harassing behavior. Unauthorized use of Focus Cfo's marks or confidential information also constitutes cause for immediate termination. Finally, Focus Cfo can terminate the agreement if the franchisee engages in or is accused of fraud, embezzlement, or other crimes that could affect Focus Cfo's reputation, or if the franchisee fails to comply with applicable federal, state, or local regulations or laws relating to the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.