How does Focus Cfo pay the franchisee?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
or authority to bind Focus CFO except as set forth in this Section 7 and provided for in Attachment F.
8. PAYMENTS; INDEPENDENT CONTRACTOR STATUS
- 8.1. Focus CFO shall pay Franchisee as an independent contractor according to the current Compensation Policy. The Compensation Policy is adopted by Focus CFO management. The current Compensation Policy is attached as Attachment B. Focus CFO has the right to modify the Compensation Policy by providing Franchisee with at least thirty (30) days' prior notice. However, Focus CFO cannot adjust each individual percentage rate set forth in the then-current Compensation Policy by more than one individual percentage point per year without Franchisee's prior written consent. See Attachment B for examples.
- 8.2. Franchisee is responsible for all Federal, state and local/city estimated tax payments and self-employment taxes on payments from Focus CFO. Focus CFO will remit to Franchisee compensation at a gross amount with no deduction for taxes. At the end of each year, Franchisee will receive a Form 1099 from Focus CFO.
- 8.3. This Agreement does not create a fiduciary relationship between the parties and nothing in this Agreement is intended to make either party a general or special agent, legal representative, subsidiary, joint venture, partner, employee or servant of the other for any purpose.
- 8.4. Franchisee acknowledges and agrees that, under this Agreement, Franchisee is and will be an independent contractor. Franchisee is not an employee of Focus CFO for any purpose, most particularly with respect to any mandated or other employee benefits or insurance coverage, tax, or contributions, or requirements pertaining to withholdings, levied of fixed, by any city, state, or federal governmental agency.
9. EXPENSES AND BENEFITS
9.1. Franchisee will incur its own expenses related to a business computer and software, printer, mobile phone, internet access, meals and entertainment, travel, automobile and mileage. Franchisee will pay its own mailings and correspondence.
9.2. Franchisee is required to have a business computer. Focus CFO does not require a specific brand or model of business computer, other hardware or Internet provider. However, Focus CFO requires the business computer meet minimum specifications as determined by Focus CFO's IT provider. High-speed internet access for Franchisee's home office is strongly recommended.
9.3. Franchisee is required to pay a recurring IT Services fee as outlined in Attachment G.
9.4. Franchisee shall provide its own transportation to and from networking and prospect/client meetings.
9.5. Focus CFO will provide Franchisee with five (5) Focus CFO branded shirts, or upon request, the applicable number of Focus CFO logo pins which can be attached to clothing. These should be worn to all group marketing events and to meetings with
potential or new clients. Franchisee can purchase additional Focus CFO branded items from one of Focus CFO's authorized vendors at costs ranging from $30 to $150 per item.
9.6.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus CFO pays franchisees as independent contractors based on the company's Compensation Policy. This policy, detailed in Attachment B of the Franchise Agreement, is subject to modifications by Focus CFO management, provided that franchisees receive at least thirty days' notice. However, Focus CFO cannot adjust individual percentage rates in the Compensation Policy by more than one percentage point per year without the franchisee's written consent. Attachment B includes examples of the Compensation Policy.
As independent contractors, Focus Cfo franchisees are responsible for all federal, state, and local estimated tax payments and self-employment taxes on their compensation from Focus CFO. Franchisees receive compensation at a gross amount without any deductions for taxes, and Focus CFO issues a Form 1099 to franchisees at the end of each year. The agreement explicitly states that it does not establish a fiduciary relationship between Focus CFO and the franchisee, nor does it create a general or special agency, legal representation, subsidiary, joint venture, partnership, employment, or servant relationship.
Client payments are made directly to Focus CFO, who then pays the franchisee according to the Compensation Policy outlined in Attachment B. Franchisees are not authorized to provide services to prospective clients until Focus CFO receives a signed Professional Services Agreement (PSA) from the client. Payments received from businesses without a signed PSA on file will be returned, and no payments will be made to the franchisee for those amounts. This arrangement ensures that all client engagements adhere to Focus CFO's standards and ethical guidelines.
Focus CFO also deducts certain fees from the franchisee's compensation. For example, the current cost of IT Services is $30 per pay period, which is deducted from the franchisee's compensation. Franchisees can also elect to include Microsoft Copilot in their subscription for an additional $15 per pay period, which is also deducted from their compensation. If a franchisee has not yet started earning compensation, Focus CFO will work with them to cover these costs until they do.