Does Focus CFO deduct taxes from the compensation remitted to the franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
t Compensation Policy by more than one individual percentage point per year without Franchisee's prior written consent. See Attachment B for examples.
- 8.2. Franchisee is responsible for all Federal, state and local/city estimated tax payments and self-employment taxes on payments from Focus CFO. Focus CFO will remit to Franchisee compensation at a gross amount with no deduction for taxes. At the end of each year, Franchisee will receive a Form 1099 from Focus CFO.
- 8.3. This Agreement does not create a fiduciary relationship between the parties and nothing in this Agreement is intended to make either party a general or special agent, legal representative, subsidiary, joint venture, partner, employee or servant of the other for any purpose.
- 8.4. Franchisee acknowledges and agrees that, under this Agreement, Franchisee is and will be an independent contractor. Franchisee is not an employee of Focus CFO for any purpose, most particularly with respect to any mandated or other employee benefits or insurance coverage, tax, or contributions, or requirements pertaining to withholdings, levied of fixed, by any city, state, or federal governmental agency.
9. EXPENSES AND BENEFITS
- 9.1. Franchisee will incur its own expenses related to a business computer and software, printer, mobile phone, internet access, meals and entertainment, travel, automobile and mileage. Franchisee will pay its own mailings and correspondence.
- 9.2. Franchisee is required to have a business computer. Focus CFO does not require a specific brand or model of business computer, other hardware or Internet provider. However, Focus CFO requires the business computer meet minimum specifications as determined by Focus CFO's IT provider. High-speed internet access for Franchisee's home office is strongly recommended.
- 9.3.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO will not deduct taxes from compensation remitted to the franchisee. As an independent contractor, the franchisee is responsible for all federal, state, and local estimated tax payments and self-employment taxes on payments from Focus CFO. Franchisees will receive a Form 1099 from Focus CFO at the end of each year.
This arrangement means that Focus CFO franchisees must proactively manage their tax obligations, including making quarterly estimated tax payments to avoid penalties. Franchisees should consult with a tax professional to ensure they understand and comply with all applicable tax laws. This is a common arrangement for franchise systems where franchisees are classified as independent contractors rather than employees.
In addition to tax responsibilities, the FDD states that Focus CFO franchisees are required to maintain certain IT software, services, and support, with the current cost being $30 per pay, which will be deducted from the franchisee's compensation each pay period. Franchisees can also elect to include Microsoft Copilot in their subscription for an additional $15 per pay, which will also be deducted from their compensation. For franchisees who have not yet started to earn compensation, Focus CFO will work with them to cover the cost until they do.