Does Focus Cfo guarantee that the business insurance coverage it provides is adequate to protect the franchisee?
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO does not guarantee that the business insurance coverage it provides is adequate to protect the franchisee. While Focus CFO will provide reasonable business insurance coverage, including general liability, crime, and employment practices insurance, this is subject to standard limitations and indemnification provisions.
The business insurance coverage provided by Focus CFO extends only to the Area President of the Franchisee's business entity and does not extend to other support resources. The franchisee is responsible for ensuring they have all appropriate insurance in place to cover the services performed by all support resources.
The FDD explicitly states that Focus CFO does not represent or warrant that the provided insurance coverage is adequate to protect the franchisee. It also clarifies that nothing in the agreement restricts the franchisee from obtaining their own insurance. This means it is the franchisee's responsibility to assess their insurance needs and secure additional coverage if they deem it necessary.
Prospective franchisees should carefully consider this and consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances, taking into account the scope of their operations and the number of support resources they employ.