Is a Focus Cfo franchisee restricted from obtaining additional insurance coverage beyond what Focus Cfo provides?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO will provide franchisees with reasonable business insurance coverage, including general liability, crime, and employment practices insurance. This coverage is subject to standard limitations and indemnification provisions typical for a professional service business, contingent upon the franchisee's compliance with Focus CFO's policies and standard operating procedures. The insurance coverage provided by Focus CFO extends only to the Area President of the franchisee's business entity and not to other support resources.
However, the FDD explicitly states that Focus CFO does not guarantee that the provided insurance coverage is adequate to protect the franchisee. More importantly, the franchise agreement does not restrict franchisees from securing their own additional insurance coverage if they deem it necessary.
This provision allows Focus Cfo franchisees to supplement the franchisor-provided insurance with additional policies to address specific risks or liabilities they may face in their operations. Franchisees are responsible for ensuring they have appropriate insurance to cover services performed by their support resources.