Must a Focus Cfo franchisee comply with Focus CFO's policies and standard operating procedures to maintain business insurance coverage?
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 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus CFO Franchise Disclosure Document, Focus CFO will provide its franchisees with business insurance coverage, specifically general liability, crime, and employment practices insurance. However, this coverage is contingent upon the franchisee's ongoing compliance with Focus CFO's policies and standard operating procedures. This insurance coverage extends only to the Area President of the Franchisee's business entity and not to other support resources.
To ensure compliance, as part of the annual renewal process of the business insurance coverage, the Focus CFO franchisee is required to sign an annual statement. This statement certifies that the franchisee is in compliance with Focus CFO's policies and procedures. The statement must also disclose any known circumstances that could result in a legal claim against Focus CFO, which could then lead to a potential insurance claim. The franchisee must comply with this requirement within thirty days of Focus CFO's request each year.
In practical terms, a Focus CFO franchisee must diligently adhere to all policies and procedures set forth by Focus CFO to maintain their business insurance coverage. Failure to comply with these policies could result in a lapse in coverage, leaving the franchisee financially vulnerable in the event of a claim. The annual certification process underscores the importance of ongoing compliance and transparency in the franchisee's operations.