For Focus CFO Area Presidents, what revenue is considered when calculating calendar year-to-date collections?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of calculating the calendar year-to-date collections, revenue shall include CFO Services revenue.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus CFO Franchise Disclosure Document, the revenue considered when calculating calendar year-to-date collections for Area Presidents includes CFO Services revenue. This calculation is important because it determines the base rate percentage that Area Presidents receive on clients in their Book of Business with a signed PSA dated after their twenty-fourth month after signing the Franchise Agreement.
The base rate on these accounts increases on a territory-by-territory basis as the calendar year-to-date collections reach certain tiers. The tiers are as follows: $1 - $550,000 = 20%, $550,001 - $1,100,000 = 25%, $1,100,001 - $1,650,000 = 30%, and revenue over $1,650,000 = 35%. These tiers may be adjusted for inflation and other business factors over time, which could impact the revenue targets an Area President needs to reach to increase their base rate.
This compensation structure incentivizes Area Presidents to grow their client base and increase revenue within their territories. By focusing on CFO Services revenue, Focus CFO aligns the Area President's compensation with the core services offered by the franchise. This encourages Area Presidents to prioritize and promote these services to maximize their earnings.