Under what condition is a Focus Cfo franchisee allowed to engage in activities that would otherwise violate the non-compete agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term of this Agreement and any successor terms, unless authorized in writing by Focus CFO, Franchisee shall not advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party. Franchisee is, however, free to be involved in other business
activities, provided Franchisee is able to fully satisfy the Performance Standards required by this Agreement and is in compliance with Attachment E to the Franchise Agreement.
13.2.
Post-Termination Non-Compete.
For a period of two (2) years after expiration or early termination of this Agreement or any successor Franchise Agreement, unless authorized in writing by Focus CFO, Franchisee shall not (i) advertise, promote, offer to provide or provide services which are competitive with Focus CFO's business to a third party within the Home Territory or any Secondary Territory, or (ii) advertise, promote, offer to provide or provide services to any Focus CFO client that Franchisee has previously serviced regardless of location.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 FDD, a Focus Cfo franchisee is permitted to engage in activities that would otherwise violate the non-compete agreement if Focus CFO provides written authorization. This applies both during the term of the Franchise Agreement and for a period of two years after the agreement's expiration or termination. Without this written authorization, the franchisee is restricted from advertising, promoting, offering, or providing services that compete with Focus CFO's business.
During the term of the agreement, a Focus Cfo franchisee is also free to be involved in other business activities, provided they can fully satisfy the Performance Standards required by the Franchise Agreement and comply with Attachment E. This allows some flexibility for franchisees to pursue other ventures, as long as these do not interfere with their ability to meet the standards set by Focus CFO.
After the agreement ends, the non-compete restrictions are more stringent. Without written authorization from Focus CFO, the franchisee cannot engage in competitive activities within their Home Territory or any Secondary Territory. They are also prohibited from soliciting or providing services to any Focus CFO client they previously serviced, regardless of the client's location. This post-termination restriction is in place for two years to protect Focus CFO's client base and market presence.