Where can I find the 'Compensation Policy' for Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
8. PAYMENTS; INDEPENDENT CONTRACTOR STATUS
- 8.1. Focus CFO shall pay Franchisee as an independent contractor according to the current Compensation Policy. The Compensation Policy is adopted by Focus CFO management. The current Compensation Policy is attached as Attachment B. Focus CFO has the right to modify the Compensation Policy by providing Franchisee with at least thirty (30) days' prior notice. However, Focus CFO cannot adjust each individual percentage rate set forth in the then-current Compensation Policy by more than one individual percentage point per year without Franchisee's prior written consent. See Attachment B for examples.
ATTACHMENT B TO THE FRANCHISE AGREEMENT
COMPENSATION POLICY (EFFECTIVE AS OF January 1, 2025)
Focus CFO has the right to modify the provisions of this Compensation Policy as set forth in your Franchise Agreement.
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- Area Presidents:
- A. Area Presidents are paid a base rate. The base rate is determined as follows:
- i. For clients in the Area President's Book of Business with a signed PSA dated in months one through thirteen after signing this Agreement, the Area President will receive a base rate of thirty percent (30%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts.
- ii. For clients in the Area President's Book of Business with a signed PSA dated in months fourteen through twenty-four after signing this Agreement, the Area President will receive a base rate of twentyfive percent (25%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts.
- iii. For clients in the Area President's Book of Business with a signed PSA dated after the Area President's twenty-fourth month after signing this Agreement, the Area President will receive a base rate of twenty percent (20%) of the CFO Services revenue collected by Focus CFO on said clients. The base rate on these accounts shall increase, on a territory-by-territory basis, as the calendar year-todate collections on their Book of Business for a given territory reaches the following tiers.
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- $1 $550,000 = 20%
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- $550,001 $1,100,000 = 25%
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- $1,100,001 $1,650,000 = 30%
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- Revenue over $1,650,000 = 35%
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These tiers will be adjusted for inflation and other business factors from time to time.
For purposes of calculating the calendar year-to-date collections, revenue shall include CFO Services revenue.
B. If the Area President borrows a CFO from another Area President's Marketing Team, their base rate for that client will be reduced if the following situations apply:
- i.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the current Compensation Policy is included as Attachment B. Specifically, section 8.1 states that Focus CFO will compensate franchisees as independent contractors, according to the Compensation Policy, which is adopted by Focus CFO management. Attachment B to the Franchise Agreement contains the Compensation Policy, which was effective as of January 1, 2025.
As an Area President, your compensation is determined by a base rate, which is calculated based on when clients in your Book of Business sign a PSA (Professional Services Agreement). For clients who sign a PSA within the first 13 months after you sign the Franchise Agreement, you'll receive 30% of the CFO Services revenue collected by Focus CFO for the life of those accounts. For clients signing between months 14 and 24, the rate is 25%. After 24 months, the base rate starts at 20% but can increase based on territory-by-territory calendar year-to-date collections. These tiers are subject to adjustments for inflation and other business factors.
It's important to note that Focus CFO retains the right to modify the Compensation Policy, but they must provide you with at least 30 days' prior notice. Furthermore, Focus CFO cannot adjust individual percentage rates within the current Compensation Policy by more than one percentage point per year without your written consent. This provides some level of protection against drastic, sudden changes to your compensation structure. The policy also addresses scenarios where CFOs are borrowed from other Area Presidents' Marketing Teams, which can affect the base rate. Surcharges may also apply if leads are sourced through corporate-sponsored marketing programs.
As a prospective franchisee, carefully reviewing Attachment B is crucial to understanding how you will be compensated and what factors can influence your earnings. Pay close attention to the conditions under which your base rate can be adjusted, as well as the terms for borrowed CFOs and marketing-generated leads. Understanding these details will help you project your potential income and assess the financial viability of the franchise opportunity.