How is the 'Book of Business' defined for an Area President within the Focus Cfo franchise?

According to the 2025 Focus Cfo Franchise Disclosure Document, the 'Book of Business' for an Area President is defined as the cash basis revenue derived from Focus Cfo clients that result from the Area President's business development activities, as well as clients that are specifically assigned to the Area President. This definition is important because it directly relates to how an Area President is compensated.

The compensation policy outlined in Attachment B of the Focus Cfo franchise agreement specifies that Area Presidents receive a base rate percentage of the CFO Services revenue collected by Focus CFO from clients within their Book of Business. The percentage varies based on when the client signed a Professional Services Agreement (PSA). For PSAs signed in months one through thirteen after the Area President signs their agreement, the base rate is 30%. For months fourteen through twenty-four, it's 25%, and after twenty-four months, it starts at 20% but can increase based on territory revenue tiers.

This definition and the associated compensation structure incentivize Area Presidents to actively engage in business development and client acquisition. The tiered compensation system further motivates them to grow their Book of Business and increase revenue within their territory. However, it's important to note that Focus CFO retains the right to modify the Compensation Policy, although adjustments to individual percentage rates are limited to one percentage point per year without the franchisee's written consent. Prospective franchisees should carefully consider these factors and discuss the potential for changes in the compensation policy with Focus CFO.