Can Focus Cfo hold a franchisee liable for breaches caused by their Support Resources?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Focus CFO shall have the right to hold Franchisee solely liable and responsible for any breach of this Agreement caused by the failure by any Support Resource of Franchisee to follow the Focus CFO System.
- 1.6. If Franchisee is a Certified Public Accountant ("CPA") or has been a licensed CPA in the past, Franchisee agrees not to represent itself as a CPA in any way in connection with the marketing or offering of CFO Services under the Focus CFO Marks. Franchisee also agrees not to use other forms of professional accounting certifications, or certifications common to public accounting firms, including but not limited to, Chartered Accountant ("CA") or similar designations in conjunction with marketing and offering CFO Services under the Focus CFO Marks. Specifically, Franchisee agrees not to use these designations on business cards, resumes, Focus CFO website, their personal LinkedIn page, or in any other way. Franchisee understands and agrees that Focus CFO's restriction on the use of these designations is necessary to protect the Focus CFO System and Focus CFO Marks in order to prevent confusion in the market between CFO Services and other regulated accounting services and does not provide Focus CFO with any control over the Franchisee's day-to-day operations. This section applies to Franchisee and any Support Resource(s) of Franchisee.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo has the right to hold a franchisee solely liable and responsible for any breach of the Franchise Agreement caused by the failure of any Support Resource to follow the Focus Cfo System. This means that if a franchisee's employee or contractor (referred to as a "Support Resource") does not adhere to the established operational methods and standards of Focus Cfo, the franchisee will be held accountable for the resulting breach of contract.
This provision places a significant responsibility on the Focus Cfo franchisee to ensure that all Support Resources are thoroughly trained and supervised to comply with the Focus Cfo System. It is crucial that franchisees implement robust internal controls and monitoring mechanisms to prevent any deviations from the system by their Support Resources. The franchisee must also ensure that all Support Resources understand they are employees of the franchisee and have no relationship with Focus Cfo.
Furthermore, the franchisee is required to have appropriate insurance in place to cover the services performed by all Support Resources. Focus Cfo may provide written minimum insurance requirements that the franchisee must follow. Focus Cfo must also be named as an additional insured on the franchisee's insurance policy. This requirement underscores the importance of risk management and the need for franchisees to protect themselves against potential liabilities arising from the actions of their Support Resources. Franchisees should carefully review their insurance coverage to ensure it adequately protects against such risks.
In addition to being held liable for breaches, the franchisee is also responsible for ensuring that each Support Resource executes a confidentiality, non-solicitation, and non-competition agreement, acknowledging they are bound to the same covenants as the Equity Owner of the Franchise. A copy of this executed agreement must be provided to Focus Cfo within ten business days of hiring the Support Resource. This requirement further emphasizes the franchisee's responsibility for the actions and compliance of their Support Resources.