What must a Focus Cfo franchisee do to maintain the business insurance coverage provided by Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
As part the annual renewal process of the Business Insurance Coverage set forth in Section 10.1, Franchisee is required to sign an annual statement prior to the annual renewal each year certifying that Franchisee is in compliance with Focus CFO's policies and procedures and disclosing any known circumstances that could result in a legal claim against Focus CFO, which could then lead to a potential insurance claim.
Franchisee will comply with this requirement within thirty (30) days of Focus CFO's request each year.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo provides franchisees with business insurance coverage that includes general liability, crime, and employment practices insurance. However, this coverage is subject to standard limitations and indemnification provisions typical for a professional service business. To maintain this coverage, a Focus Cfo franchisee must consistently comply with Focus CFO's policies and standard operating procedures. This business insurance coverage extends only to the Area President of the Franchisee's business entity and does not extend to other support resources of the Franchisee's business entity.
To ensure ongoing compliance, Focus Cfo requires franchisees to sign an annual statement each year before the business insurance coverage is renewed. This statement certifies that the franchisee is adhering to Focus CFO's policies and procedures. It also requires the franchisee to disclose any known circumstances that could potentially lead to a legal claim against Focus CFO, which could then result in an insurance claim.
The franchisee must fulfill this requirement within thirty days of Focus CFO's request each year. Additionally, Focus CFO may provide franchisees with written minimum insurance requirements for their support resources, which the franchisee must follow. Focus CFO must also be named as an additional insured on the franchisee's insurance policy.
It is important to note that Focus CFO does not guarantee that the provided insurance coverage will be adequate to fully protect the franchisee. Franchisees are permitted to obtain their own additional insurance if they deem it necessary. Franchisees are responsible for ensuring they have all appropriate insurance in place to cover the services performed by all Support Resources of Franchisee.