If Focus Cfo provides minimum insurance requirements in writing for franchisee's employees, what is the franchisee required to do?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee purchases.
Insurance Requirements
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. This business insurance coverage extends only to the franchisee's business entity and does not extend to any employees or other support resources of the franchisee's business entity. Focus CFO may provide franchisees with, in writing, minimum insurance requirements for franchisee's employees or other support resources that must be followed. Otherwise, Focus CFO does not have any other insurance requirements.
Approval of alternative suppliers
With respect to the required purchase of IT services and sales training, Focus CFO will not permit franchisees to contract with an alternative supplier.
Ownership Interest in a Supplier
Neither Focus CFO nor any officer of Focus CFO owns an interest in C-Forward or The Ruby Group.
Revenue Derived from Suppliers
Focus CFO does derive any revenue from your purchases. No officer of Focus CFO owns interest in any supplier.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 FDD, Focus CFO may provide franchisees with minimum insurance requirements in writing for the franchisee's employees or other support resources, which the franchisee must then follow. Franchisees are responsible for ensuring they have appropriate insurance to cover the services performed by all support resources. The business insurance coverage that Focus CFO provides extends only to the franchisee's business entity and not to any employees or other support resources of the franchisee's business entity.
Focus CFO also requires franchisees to sign an annual statement certifying compliance with Focus CFO's policies and procedures related to business insurance coverage. This statement must disclose any known circumstances that could result in a legal claim against Focus CFO, potentially leading to an insurance claim. Franchisees must comply with this requirement within thirty days of Focus CFO's request each year.
In practical terms, this means a Focus CFO franchisee must secure and maintain adequate insurance coverage for all employees and support staff, meeting any minimum standards Focus CFO specifies. Failure to comply with these insurance requirements and annual certification could expose the franchisee to significant financial and legal liabilities. Prospective franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and discuss any concerns with Focus CFO before signing.