Is a Focus CFO franchisee considered an employee of Focus CFO under the agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee is explicitly considered an independent contractor and not an employee of Focus Cfo. The agreement specifies that it does not establish a fiduciary relationship or create an employer-employee relationship for any purpose. Franchisees are responsible for their own federal, state, and local tax payments, including self-employment taxes, on payments received from Focus Cfo. Focus Cfo will issue a Form 1099 to franchisees at the end of each year, indicating their compensation without any deductions for taxes.
This independent contractor status has significant implications for prospective franchisees. It means they are not entitled to employee benefits or insurance coverage typically provided by an employer. Franchisees must handle their own insurance, taxes, and other employment-related obligations. Additionally, Focus Cfo does not exert control over the franchisee's day-to-day operations, reinforcing the independent nature of the relationship.
Focus Cfo also requires franchisees to operate as a business entity, such as a limited liability company, further solidifying their status as independent contractors. Franchisees have the option to hire employees or outside contractors for administrative support, taking full responsibility for compliance with all employment laws and regulations related to these support resources. This arrangement allows franchisees flexibility in managing their business while ensuring they understand their obligations as independent business owners rather than employees of Focus Cfo.