With whom do clients brought into the Focus Cfo system enter into contracts?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Clients who are brought into the FocusCFO System enter into contracts with FocusCFO, the franchisor. This helps allow FocusCFO to ensure that its clients' business practices and reputation are consistent with FocusCFO's quality standards and the reputation of the FocusCFO Marks. Franchisees join FocusCFO as an independent contractor and operate as Area Presidents, working to generate new clients within the Company's coordinated client development system. Licensees join FocusCFO as independent contractors and operate as CFOs, with the opportunity to provide CFO Services directly to FocusCFO clients.
- 7.5.
Client Engagement and Professional Service Agreements.
The following requirements relating to engagement of Focus CFO clients are necessary to protect Focus CFO's System and the Focus CFO Marks.
- 7.5.1.
All contracts with clients for CFO Services must be entered into by Focus CFO and not by Franchisee.
Focus CFO's standard Professional Service Agreement
- ("PSA") is used on all client engagements.
The PSAs are prepared through a centralized preparation process to ensure contractual language, pricing and terms adhere to Focus CFO's standards.
Contract terms cannot deviate from standard document without the written consent of Focus CFO.
Franchisee is responsible for coordinating the preparation and successful execution of client PSAs through the centralized preparation process.
Franchisee is authorized to execute Focus CFO's standard PSA, as prepared and approved by Focus CFO through the centralized preparation process, on behalf of Focus CFO.
- 7.5.2.
Acceptance of new clients is subject to approval by Focus CFO.
Focus CFO will not enter into contracts with businesses or organizations that engage in activities that are not in harmony with the ethical standards of Focus CFO, requesting service outside Focus CFO's identified scope of services or will injure the quality of the Focus CFO Marks.
- 7.5.3.
All client payments are made to Focus CFO.
Focus CFO will pay Franchisee as an independent contractor from the funds received from the clients in accordance with the Compensation Policy as set forth in Attachment B.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, clients brought into the Focus Cfo system enter into contracts with Focus Cfo, the franchisor. This is done to ensure that the clients' business practices and reputation align with Focus Cfo's quality standards and the reputation of the Focus Cfo Marks.
Focus Cfo's standard Professional Service Agreement (PSA) is used for all client engagements. These PSAs are prepared through a centralized process to maintain consistent contractual language, pricing, and terms that adhere to Focus Cfo's standards. Franchisees are responsible for coordinating the preparation and execution of these client PSAs through this centralized process and are authorized to execute the standard PSA on behalf of Focus Cfo, as prepared and approved by Focus Cfo.
This arrangement means that while a Focus Cfo franchisee (Area President) is responsible for generating new clients, the contractual relationship is directly between the client and Focus Cfo. All client payments are made directly to Focus Cfo, who then compensates the franchisee as an independent contractor according to the Compensation Policy outlined in Attachment B. This structure allows Focus Cfo to maintain control over client relationships and ensure consistent service delivery across the franchise system. Acceptance of new clients is also subject to approval by Focus Cfo, ensuring that the businesses align with the company's ethical standards and scope of services.