Does the business insurance coverage provided by Focus Cfo extend to all employees of the franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1.
Business Insurance Coverage.
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the business insurance coverage provided by Focus Cfo extends only to the Area President of the Franchisee's business entity. This coverage includes general liability, crime, and employment practices insurance, subject to standard limitations and indemnification provisions for a professional service business.
The insurance coverage does not extend to other Support Resources (employees and/or outside contractors) of the Franchisee's business entity. The franchisee is responsible for securing appropriate insurance to cover the services performed by all Support Resources. Focus CFO may provide written minimum insurance requirements for these Support Resources that the franchisee must follow.
This means a prospective Focus Cfo franchisee must budget for additional insurance coverage to protect their support staff. The franchisee is considered an independent contractor and is responsible for all aspects of employment for their support resources, including compliance with employment laws and ensuring adequate insurance coverage. Focus CFO must also be named as an additional insured on the Franchisee's insurance policy.