Under the Focus Cfo franchise agreement, what covenants survive the termination of the agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.9. Survival. Notwithstanding the expiration or termination of this Agreement for any reason whatsoever, all covenants and agreements to be performed and/or observed by Franchisee, the Equity Owner and/or Other Equity Owners (as defined in Section 19) under this Agreement or which by their nature survive the expiration or termination of this Agreement hereof shall survive any such expiration or termination.
Franchisee hereby agrees that he or she will not, either during the term of this Agreement or at any time following the termination hereof for any reason, disparage Focus CFO, the System or any officer, employee, licensee or franchisee of Focus CFO, or any business practice employed by Focus CFO or any officer, employee, licensee or franchisee thereof through any means of communication, including but not limited to the Internet, blog posts, reviews or social media platforms.
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.
Franchisee agrees that during the entire term of this Agreement and any successor franchise terms, and continuing for a period of two years (2) following the expiration or early termination of this Agreement, for any reason, unless authorized in writing by Focus CFO, Franchisee shall not, either directly or indirectly, on Franchisee's own behalf or on behalf of or in conjunction with any person, firm, corporation, or other business or legal entity:
- 13.3.1. employ or engage as an employee, independent contractor, or otherwise, any member, employee, independent contractor, franchisee, licensee, officer, director or agent of Focus CFO, or any affiliate of Focus CFO (Focus CFO and its affiliates are collectively referred to herein as the "Focus CFO Consolidated Group");
The obligations of Franchisee and Equity Owner in this Section shall expressly survive the expiration or early termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, several covenants and agreements survive the termination of the franchise agreement. These include all covenants and agreements to be performed by the franchisee, the Equity Owner, and/or Other Equity Owners under the agreement, or which by their nature survive the expiration or termination of the agreement. This means that even after the franchise agreement ends, certain obligations and responsibilities of the franchisee continue to be in effect.
Specifically, the non-disparagement clause remains in effect, preventing the franchisee from disparaging Focus Cfo, its system, or its personnel through any means of communication, including the internet and social media. Additionally, the post-termination non-compete clause restricts the franchisee for two years after termination from providing competitive services within their Home Territory or any Secondary Territory, or to any Focus Cfo client they previously serviced. The non-solicitation clause also remains in effect for two years, preventing the franchisee from employing or engaging any member, employee, independent contractor, franchisee, licensee, officer, director, or agent of the Focus CFO Consolidated Group.
Furthermore, the franchisee's indemnification obligations survive the termination, requiring the franchisee and Equity Owner to hold harmless, defend, and indemnify Focus Cfo Indemnitees against all losses, damages, costs, and liabilities arising from various actions or omissions, such as violations of laws, criminal conduct, breaches of the agreement, negligence, infringement of intellectual property, or inappropriate behavior. These surviving covenants are designed to protect Focus Cfo's interests, reputation, and client relationships even after the franchise agreement has ended.