How much notice will Focus Cfo give franchisees before changing the compensation policy?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement. (FA § 3.1.2) |
Notes:
(1) Focus CFO has the right to change the compensation policy by giving Franchisees at least 30 days' notice. The current base compensation is as follows: For clients in the Franchisee's Book of Business with a signed PSA dated in months one through thirteen after signing the Franchise Agreement, the Franchisee will receive a base rate of thirty percent (30%) of the CFO Services revenue collected on said clients for the life of the accounts. For clients in the Franchisee's Book of Business with a signed PSA dated in months fourteen through twenty-four after signing the Franchise Agreement, the Franchisee will receive a base rate of twenty-five percent (25%) of the CFO Services revenue collected on said clients for the life of the accounts. For clients in the Franchisee's Book of Business with a signed PSA dated after the Franchisee's twenty-fourth month after signing the Franchise Agreement, the Franchisee
will receive a base rate of twenty percent (20%) of the CFO Services revenue collected on said clients. The base rate on these accounts shall increase as the calendar year-to-date collections on their Book of Business on a territory-by-territory basis reaches the following tiers: $1 - $550,000 = 20%; $550,001 - $1,100,000 = 25%; $1,100,001 - $1,650,000 = 30%; revenue over $1,650,000 = 35%. The compensation policy is found i
Source: Item 6 — Other Fees (FDD pages 11–13)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo has the right to change its compensation policy, but they must provide franchisees with at least 30 days' notice before doing so. The compensation policy itself is detailed in Attachment B to the Franchise Agreement.
The current compensation structure is based on when a client's PSA (Professional Services Agreement) is signed relative to the franchisee's start date. For clients signed within the first 13 months, the franchisee receives 30% of CFO Services revenue. This drops to 25% for clients signed in months 14-24, and 20% for clients signed after 24 months. These percentages apply for the life of the accounts.
Additionally, the base rate can increase based on the calendar year-to-date collections within a territory. The rate starts at 20% for collections between $1 and $550,000, increasing to 25% between $550,001 and $1,100,000, then to 30% between $1,100,001 and $1,650,000, and finally to 35% for revenue exceeding $1,650,000. This tiered structure incentivizes franchisees to grow their book of business within their territory.