Is a Focus CFO franchisee entitled to employee benefits or insurance coverage from Focus CFO?
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. Franchisee is required to pay a recurring IT Services fee as outlined in Attachment G.
9.4. Franchisee shall provide its own transportation to and from networking and prospect/client meetings.
9.5. Focus CFO will provide Franchisee with five (5) Focus CFO branded shirts, or upon request, the applicable number of Focus CFO logo pins which can be attached to clothing. These should be worn to all group marketing events and to meetings with
potential or new clients. Franchisee can purchase additional Focus CFO branded items from one of Focus CFO's authorized vendors at costs ranging from $30 to $150 per item.
9.6. Franchisee may be required 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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus CFO's 2025 Franchise Disclosure Document, franchisees are explicitly considered independent contractors and are not entitled to employee benefits or insurance coverage from Focus CFO. The agreement specifies that the franchisee is responsible for all federal, state, and local tax payments, including self-employment taxes, on payments received from Focus CFO. Compensation is remitted at a gross amount without deductions for taxes, and franchisees receive a Form 1099 from Focus CFO at the end of each year. This arrangement is typical in many franchise systems where franchisees operate as independent business owners rather than employees.
Focus CFO will provide franchisees with reasonable business insurance coverage, including general liability, crime, and employment practices insurance, subject to standard limitations and indemnification provisions. However, this coverage extends only to the Area President of the Franchisee's business entity and not to any Support Resources the franchisee hires. Franchisees are responsible for securing appropriate insurance to cover any services performed by their Support Resources. Focus CFO may provide written minimum insurance requirements for these Support Resources, which the franchisee must follow.
As an independent contractor, a Focus CFO franchisee is responsible for their own business expenses, including computer equipment, software, internet access, mobile phone, meals, entertainment, travel, and automobile costs. Franchisees also cover their own mailing and correspondence expenses. Focus CFO provides five branded shirts or logo pins for marketing events and client meetings, with additional branded items available for purchase at costs ranging from $30 to $150 per item. Franchisees may also incur costs to attend required training sessions.
Prospective franchisees should carefully consider these financial responsibilities and insurance obligations, as they will significantly impact the overall cost of operating a Focus CFO franchise. Understanding the independent contractor status and its implications is crucial for budgeting and ensuring adequate protection for the franchisee's business and any Support Resources they employ.