Under what condition can the Focus Cfo territory not extend into neighboring states?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
You will receive a specific non-exclusive geographic territory to conduct your business. We may allow multiple Franchisees to operate within the same geographic area. You will be expected to work in a collaborative manner with other Franchisees within your geographic area. Your territory will be a seventy-five (75) mile radius of the address of your franchised business, but this territory shall not extend into neighboring states where Focus CFO is not registered to sell franchises as of the effective date of your franchise agreement. You are not authorized to perform any form of direct outreach marketing, solicitation or networking activities for lead generation or building a referral network outside of the geographic territory that we grant to you. In order to perform these activities outside of your geographic territory, you will be required to purchase an additional territory. Focus CFO reserves the right to approve or deny your request to purchase an additional territory. If you are approved to purchase an additional territory, you will be required to pay a fee equal to the then-current franchise fee and you may be required to sign the then-current Franchise Agreement or an Amendment to your current Franchise Agreement.
Source: Item 12 — Territory (FDD pages 23–24)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, a franchisee's Home Territory, defined as a 75-mile radius around their business address, will not extend into neighboring states if Focus CFO is not registered to sell franchises in those states as of the effective date of the Franchise Agreement. This restriction ensures that franchisees operate only in states where Focus CFO has the legal authority to grant franchises.
This limitation has practical implications for prospective franchisees whose 75-mile radius might otherwise include parts of neighboring states. They will be unable to directly market or solicit clients in those unregistered states without purchasing an additional territory. This could restrict their potential client base and revenue if they are located near a state border where Focus CFO is not registered.
However, the franchisee is permitted to contact and follow leads for client opportunities referred to it by referral partners within its Home Territory, even if those client opportunities fall outside of the Franchisee's Home Territory, except if the client opportunity is located in a state listed as restricted in the Focus CFO Policies and Procedures Playbook. This exception allows for some flexibility in pursuing business opportunities that originate within the franchisee's territory but extend beyond its geographical boundaries, provided the client is not in a restricted state.
To expand their territory into neighboring states where Focus CFO is registered, a franchisee can request to purchase a Secondary Territory. This requires written approval from Focus CFO, and if approved, the franchisee may need to sign a new franchise agreement or an amendment and pay an additional franchise fee. This provides a pathway for franchisees to grow their business beyond their initial territory, but it is subject to Focus CFO's approval and additional costs.