Under what condition can Focus Cfo convey its obligations to the franchisee to another party?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
the extent permitted by applicable law, Focus CFO has the right to require Franchisee to sign a release in connection with any refund of the Franchisee Fee.
12. TRANSFER
12.1. Franchisee may sell, convey, or otherwise transfer its Franchise ("Transferring Area President") to another individual ("Recipient Area President") so long as the following conditions are satisfied:
Conditions to Transfer by Franchisee:
- 12.1.1. All transfers are required to be approved by Focus CFO in writing prior to the transfer occurring.
- 12.1.2. The Transferring Area President must have been a Franchisee for at least (2) years and developed a Book of Business, as defined in Attachment A of this Agreement, with at least Five Hundred Thousand Dollars ($500,000) of collected (cash basis) revenue during the twelve (12) months preceding the desired Transfer;
- 12.1.3. The Recipient Area President (i) must be an existing Focus CFO franchisee prior to the Transfer and not be in breach of his or her Franchise Agreement or (ii) an
individual interested in becoming a franchisee who enters into the then-current Franchise Agreement with Focus CFO;
- 12.1.4. The Transferring Area President provides to Focus CFO at least ninety (90) days' advance written notice of the Transfer if to an existing franchisee and at least 120 days' notice if to a new franchisee;
- 12.1.5. The Transferring Area President and the Recipient Area President shall provide Focus CFO a summary of all material terms and conditions upon which the Transfer is to be made, including but not limited to the purchase price to be paid by the Recipient Area President to the Transferring Area President, if any, and any agreement to split the revenue from the Book of Business among the Transferring Area President and Recipient Area President, including the percentage split and for how long; and
- 12.1.6. The 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. To the extent permitted by applicable law, the Transferring Area President shall execute a general release on the date of termination.
- 12.2. Post-Transfer Payment. Following the Transfer, Focus CFO shall be responsible for making any payments owed by Focus CFO to the Recipient Area President under the terms of the then-current Franchise Agreement. Either Focus CFO or the Recipient Area President can be responsible for making ongoing payments, if any, to the Transferring Area President, based on the written agreement of the Transferring Area President, the Recipient Area President and Focus CFO.
- 12.3. Consent by Focus CFO Required. The Transferring Area President shall not Transfer all or any of their interest in the Franchise or in any Book of Business, without obtaining the prior written consent of Focus CFO. Focus CFO will not unreasonably withhold its consent to the Transfer provided the above criteria has been met.
- 12.4. Focus CFO's right to Transfer.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee can transfer their franchise to another individual, provided certain conditions are met. Focus Cfo approval in writing is required before the transfer can occur. The franchisee selling the franchise must have been a franchisee for at least two years and developed a Book of Business with at least $500,000 of collected revenue during the 12 months preceding the desired transfer.
The individual receiving the franchise must either be an existing Focus Cfo franchisee not in breach of their agreement, or someone entering into the then-current Focus Cfo Franchise Agreement. The franchisee selling the franchise must provide Focus Cfo with advance written notice of the transfer: 90 days if the recipient is an existing franchisee, and 120 days if the recipient is a new franchisee.
Additionally, both parties must provide Focus Cfo with a summary of all material terms, including the purchase price and any agreement to split revenue from the Book of Business. The selling franchisee's agreement automatically terminates 12 months from the transfer date, unless terminated earlier. Following the transfer, Focus Cfo is responsible for payments owed to the new franchisee under the current agreement. Payments to the selling franchisee, if any, are based on a written agreement among all three parties.