How do licensees join Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
and CFOs, which it began offering as of April 2, 2018. Effective April 2, 2018, the Company also began providing outsourced Chief Financial Officer Services ("CFO Services") primarily to small and medium size businesses on a fractional, or part-time basis. Effective April 1, 2023, the Company determined due to the evolution of its model that it could begin offering licensing agreements to CFOs allowing licensees to use the FocusCFO Marks to provide CFO services to FocusCFO clients. Franchises are still offered to those joining as Area Presidents.
Clients who are brought into the FocusCFO System enter into contracts with FocusCFO, the franchisor. This helps allow FocusCFO to ensure that its clients' business practices and reputation are consistent with FocusCFO's quality standards and the reputation of the FocusCFO Marks. Franchisees join FocusCFO as an independent contractor and operate as Area Presidents, working to generate new clients within the Company's coordinated client development system. Licensees join FocusCFO as independent contractors and operate as CFOs, with the opportunity to provide CFO Services directly to FocusCFO clients.
Franchisees are compensated as independent contractors for sales and marketing as well as for other supplemental services as outlined in the Franchise Agreement. Licensees are compensated as independent contractors for performing CFO Services to FocusCFO clients. Fees generated from these services are allocated between the franchisee, licensee and FocusCFO in accordance with the terms of the Franchise Agreement and Licensing Agreement.
As of December 31, 2024, the Company operates in the states of Ohio, Michigan, Indiana, Pennsylvania, Kentucky, North Carolina, South Carolina, Tennessee, Florida, Nevada, Wisconsin, Texas, Virginia, Georgia, and Connecticut and is in compliance with registration requirements in those states.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the Company have been prepared on the accrual basis of accounting and conform to generally accepted accounting principles. Following is a summary of the significant accounting policies and practices of the Company, which affect significant elements of the accompanying financial statements.
Principles of Consolidation
The consolidated financial statements include the accounts of FocusCFO and its wholly owned subsidiary LTD. All inter-company accounts and transactions have been eliminated in consolidation.
Cash and cash equivalents
Cash and cash equivalents include cash in bank and all highly liquid investments with maturities of three months or less.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, licensees can join Focus Cfo as independent contractors and operate as CFOs. They have the opportunity to provide CFO Services directly to Focus Cfo clients. These clients enter into contracts directly with Focus Cfo, which helps the company maintain consistent business practices and protect the reputation of its brand.
To become a franchisee with Focus Cfo, the franchisee must enter into an agreement as a business entity, such as a limited liability company, with one equity owner who will serve as an Area President. The Area President is responsible for generating new clients using Focus CFO's client development system. Area Presidents do not typically perform CFO Services for clients, as these services are provided by licensed CFOs.
However, a franchisee can provide CFO Services under certain conditions. They can perform CFO services on a limited basis as a CFO under a separate CFO Licensing Agreement while maintaining their status as an Area President. Alternatively, they can terminate their Franchise Agreement as an Area President and apply for a non-exclusive license to operate as a CFO. It is important to note that Focus Cfo will not refund any difference between the Franchise Fee paid under the Franchise Agreement and any payment required to obtain a non-exclusive license.