What is the legal relationship between Focus Cfo and its franchisees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Business
Franchisees are independent contractors of Focus CFO. As a Franchisee of Focus CFO, you will operate your franchised business as an Area President, working to generate new clients for Focus CFO utilizing our client development system. Area Presidents' franchised businesses will focus on operating as business development leaders and serve as strategic relationship managers, matching Focus CFO clients with licensees of Focus CFO, referred to as CFOs. Note that some of the CFOs who you will work with are operating as franchisees of Focus CFO who signed franchise agreements with Focus CFO prior to 2023. As our system has evolved, we no longer offer franchise opportunities to individuals wishing to operate as a CFO. Rather, those individuals are independent contractors who have a license to use the Focus CFO Marks and other resources provided by Focus CFO.
Products and Services
Franchisees will market and offer CFO Services primarily to small and medium-sized businesses on a fractional or part-time basis. This includes offering businesses onsite or remote financial and operational support in the area of finance and operations, controller-level accounting and support services, business consulting or coaching, business value growth or exit planning services. The CFO Services that Franchisees will offer will be performed by qualified CFOs who have obtained a non-exclusive license (or prior to 2023, purchased a franchise) from Focus CFO to provide such services.
Market and Competition
The target market for your franchised business are small-to-medium-sized businesses who do not employ a full-time CFO. We believe it is a well-developed market as the competition for the franchised services will come from individuals and other businesses performing the same or similar financial consulting services. This may include other fractional CFO firms (which may include other franchise systems) and business consulting firms.
Clients
Franchisees service a group of clients that are developed by the efforts of Focus CFO, the Focus CFO System, Area Presidents, CFOs, and the use of the Focus CFO Marks.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 6–8)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, franchisees are considered independent contractors of Focus CFO. As an Area President, the franchisee's role involves generating new clients for Focus CFO by utilizing their client development system. The franchisee's business focuses on business development and strategic relationship management, connecting Focus CFO clients with licensed CFOs. It is important to note that some CFOs operate as franchisees who signed agreements before 2023; currently, Focus CFO offers licenses rather than franchises to individuals wishing to operate as CFOs.
This independent contractor relationship means that franchisees have significant autonomy in how they operate their business. However, it also implies that they are responsible for their own business expenses, insurance, and compliance with relevant laws. Focus CFO must approve all clients to ensure their business practices align with Focus CFO's standards and reputation, but Focus CFO is not involved in the day-to-day operations of the franchisees.
For prospective franchisees, this arrangement offers flexibility but also requires a strong entrepreneurial drive. Franchisees are paid as independent contractors based on fees generated from CFO services performed by franchisees and licensees for the Focus CFO client base. The success of a Focus CFO franchise depends on the franchisee's ability to implement the Focus CFO system, meet client needs, develop new clients, and effectively work with CFOs in their area. Franchisees are encouraged to use Focus CFO's marketing programs, tools, and training to develop their franchise and add potential clients to the Focus CFO client base.
Furthermore, the FDD states that if a Focus CFO franchisee is a Certified Public Accountant (CPA) or has been a licensed CPA, they agree not to represent themselves as a CPA in any way in connection with any marketing or offering of CFO Services under the Focus CFO brand. Franchisees also agree not to use other forms of professional accounting certifications in conjunction with their association with Focus CFO. This includes no designations of CPA, including inactive status, on business cards, resumes, the website, the franchisee's personal LinkedIn page, or in any other way.