Is the business insurance coverage provided by Focus Cfo subject to any limitations?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
ed to incur costs to attend required training as set forth in Section 7 and in the accompanying Attachment C.
10. LIABILITY INSURANCE; INDEMNIFICATION
- 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.
- 10.2. Business Insurance Renewal.
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 that Focus Cfo provides to its franchisees is subject to certain limitations. Focus Cfo offers reasonable business insurance coverage, including general liability, crime, and employment practices insurance. However, this coverage is subject to standard limitations and indemnification provisions typical for a professional service business. Additionally, the franchisee must comply with Focus Cfo's policies and standard operating procedures to maintain this coverage.
It's important to note that the business insurance coverage provided by Focus Cfo extends only to the Area President of the franchisee's business entity. It does not cover other support resources or employees that the franchisee may engage. Therefore, franchisees are responsible for securing appropriate insurance to cover any services performed by their support resources. Focus CFO may provide franchisees with written minimum insurance requirements for these support resources, which the franchisee must adhere to.
Focus Cfo does not guarantee that the insurance coverage they provide is adequate to fully protect the franchisee. Franchisees are not restricted from obtaining their own additional insurance coverage if they deem it necessary. Each year, as part of the business insurance renewal process, the franchisee must sign a statement certifying their compliance with Focus CFO's policies and disclosing any circumstances that could lead to a legal claim against Focus CFO, which could then lead to a potential insurance claim.