Besides the insurance coverage Focus Cfo provides and the minimum insurance requirements for employees, does Focus Cfo have any other insurance requirements?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO will provide Franchisee with reasonable business insurance coverage (general liability, crime, and employment practices), subject to standard limitations and indemnification provisions for a professional service business and Franchisee's ongoing compliance with Focus CFO's policies and standard operating procedures.
Franchisee acknowledges and agrees that Focus CFO does not represent or warrant that such insurance coverage is adequate to protect Franchisee and nothing in this Agreement restricts Franchisee from obtaining its own insurance.
This business insurance coverage extends only to the Area President of the Franchisee's business entity.
It does not extend to other Support Resources of the Franchisee's business entity.
Franchisee shall be responsible for ensuring it has all appropriate insurance in place to cover the services performed by all Support Resources of Franchisee.
Focus CFO may provide Franchisee with, in writing, minimum insurance requirements for Support Resources of Franchisee that Franchisee must follow.
Focus CFO shall be named as an additional insured on the Franchisee's insurance policy.
- 10.2.
Business Insurance Renewal.
As part the annual renewal process of the Business Insurance Coverage set forth in Section 10.1, Franchisee is required to sign an annual statement prior to the annual renewal each year certifying that Franchisee is in compliance with Focus CFO's policies and procedures and disclosing any known circumstances that could result in a legal claim against Focus CFO, which could then lead to a potential insurance claim.
Franchisee will comply with this requirement within thirty (30) days of Focus CFO's request each year.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo will provide franchisees with reasonable business insurance coverage that includes general liability, crime, and employment practices insurance. This coverage is subject to standard limitations and indemnification provisions typical for a professional service business, and it requires the franchisee to comply with Focus Cfo's policies and standard operating procedures. This insurance extends only to the Area President of the franchisee's business entity, not to other support resources.
Focus Cfo franchisees are responsible for securing appropriate insurance to cover services performed by their support resources. Focus Cfo may provide franchisees with written minimum insurance requirements for these support resources, which the franchisee must follow. Additionally, Focus Cfo requires that it be named as an additional insured on the franchisee's insurance policy.
As part of the annual business insurance renewal process, Focus Cfo requires franchisees to sign an annual statement certifying compliance with Focus Cfo's policies and procedures. This statement also requires disclosing any known circumstances that could lead to a legal claim against Focus Cfo, potentially resulting in an insurance claim. Franchisees must fulfill this requirement within thirty days of Focus Cfo's request each year. Therefore, beyond the insurance Focus Cfo provides, franchisees must maintain their own insurance, ensure their support staff is covered, and keep Focus Cfo updated on any potential liabilities.