How are franchisees compensated by Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
or authority to bind Focus CFO except as set forth in this Section 7 and provided for in Attachment F.
8. PAYMENTS; INDEPENDENT CONTRACTOR STATUS
- 8.1. Focus CFO shall pay Franchisee as an independent contractor according to the current Compensation Policy. The Compensation Policy is adopted by Focus CFO management. The current Compensation Policy is attached as Attachment B. Focus CFO has the right to modify the Compensation Policy by providing Franchisee with at least thirty (30) days' prior notice. However, Focus CFO cannot adjust each individual percentage rate set forth in the then-current 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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo franchisees are paid as independent contractors based on the company's Compensation Policy. This policy, detailed in Attachment B of the FDD, is subject to change by Focus Cfo management, provided that franchisees receive at least thirty days' notice. However, Focus Cfo can only adjust individual percentage rates within the Compensation Policy by a maximum of one percentage point per year without the franchisee's prior written consent.
As independent contractors, Focus Cfo franchisees are responsible for all federal, state, and local estimated tax payments and self-employment taxes on their compensation. Focus Cfo remits gross compensation without deducting taxes and provides franchisees with a Form 1099 at the end of each year. The FDD specifies that all client payments are made directly to Focus Cfo, which then distributes payments to franchisees according to the Compensation Policy outlined in Attachment B. Franchisees are not authorized to provide services to prospective clients until Focus Cfo has a signed Professional Services Agreement (PSA) on file; payments from businesses without a signed PSA will be returned, and franchisees will not receive compensation for those amounts.
Additionally, the FDD mentions that the cost of IT services, currently at $30 per pay period, and the optional Microsoft Copilot subscription, costing $15 per pay period, are deducted from the franchisee's compensation. For new franchisees who have not yet started earning compensation, Focus Cfo may cover these costs until they do. It is important for prospective franchisees to carefully review Attachment B and understand the Compensation Policy, including how it may be modified and the specific percentage rates applicable to their services. They should also inquire about any other forms of activity-based compensation that Focus Cfo may offer on a case-by-case basis.