What are the implications of Focus CFO not being the employer of the franchisee's Support Resources?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall take full responsibility for all Support Resources Franchisee hires and shall comply with all federal, state and local employment laws and regulations.
Franchisee shall require each Support Resource to execute a confidentiality, non-solicitation and non-competition agreement whereby the Support Resource acknowledges being bound to the same covenants as the Equity Owner of the Franchise under the terms of this Agreement.
The Franchisee will provide a copy of this executed agreement to Focus CFO within ten (10) business days of Franchisee hiring the Support Resource.
Franchisee agrees that Focus CFO is not the employer for any Support Resource Franchisee hires.
Franchisee shall ensure that all Support Resources understand that they are employees of Franchisee and have no relationship, employment or otherwise, with Franchisor.
All management, personnel and training requirements are at Franchisee's discretion and are Franchisee's sole responsibility.
As set forth in Section 10 below, Franchisee shall be responsible for ensuring it has all appropriate insurance in place to cover the services performed by all Support Resources of Franchisee.
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus CFO's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all Support Resources they hire. This means the franchisee, not Focus CFO, is considered the employer of these Support Resources. Consequently, the franchisee must comply with all federal, state, and local employment laws and regulations related to these employees. This includes, but is not limited to, proper classification of employees vs. independent contractors, payment of wages, providing benefits if applicable, and withholding and remitting payroll taxes.
Furthermore, the Focus CFO franchisee is responsible for all management, personnel, and training requirements for their Support Resources. Focus CFO has the right to hold the franchisee liable for any breach of the Franchise Agreement caused by the Support Resources' failure to follow the Focus CFO System. The franchisee must also ensure that all Support Resources understand they are employees of the franchisee and have no employment relationship with Focus CFO.
To protect Focus CFO's interests, the franchisee must require each Support Resource to sign a confidentiality, non-solicitation, and non-competition agreement, binding them to the same covenants as the franchisee. A copy of this agreement must be provided to Focus CFO within ten business days of hiring the Support Resource. The franchisee is also responsible for securing appropriate insurance coverage for the services performed by all Support Resources. Focus CFO may provide minimum insurance requirements in writing that the franchisee must follow and must be named as an additional insured on the franchisee's insurance policy.
This arrangement is common in franchising, where franchisees operate as independent business owners. The franchisee's responsibility for Support Resources helps to protect Focus CFO from potential liabilities related to employment practices, while also ensuring that Support Resources adhere to the Focus CFO System. The franchisee should consult with legal and insurance professionals to ensure full compliance with all applicable laws and adequate insurance coverage.