Does the business insurance coverage provided by Focus Cfo extend to the franchisee's employees?
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.
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, the business insurance coverage provided by Focus Cfo does not extend to the franchisee's employees, referred to as "Support Resources". The insurance coverage is limited to the Area President of the Franchisee's business entity.
This means that as a Focus Cfo franchisee, you are responsible for obtaining and maintaining appropriate insurance to cover any services performed by your Support Resources. Focus Cfo may provide written minimum insurance requirements that you must follow for your Support Resources. Additionally, Focus Cfo requires to be named as an additional insured on the franchisee's insurance policy.
This requirement ensures that Focus Cfo is protected from potential liabilities arising from the actions of the franchisee's Support Resources. It is important for prospective franchisees to factor in the cost of this additional insurance coverage when evaluating the overall investment and operational expenses of the franchise. Franchisees must also ensure their Support Resources understand they are employees of the franchisee and have no relationship with Focus Cfo.