How does Focus CFO pay its franchisees according to the Compensation Policy?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- 7.5.3.
All client payments are made to Focus CFO.
Focus CFO will pay Franchisee as an independent contractor from the funds received from the clients in accordance with the Compensation Policy as set forth in Attachment B.
ATTACHMENT B TO THE FRANCHISE AGREEMENT
COMPENSATION POLICY (EFFECTIVE AS OF January 1, 2025)
Focus CFO has the right to modify the provisions of this Compensation Policy as set forth in your Franchise Agreement.
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- Area Presidents:
- A. Area Presidents are paid a base rate. The base rate is determined as follows:
- i. For clients in the Area President's Book of Business with a signed PSA dated in months one through thirteen after signing this Agreement, the Area President will receive a base rate of thirty percent (30%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts.
- ii. For clients in the Area President's Book of Business with a signed PSA dated in months fourteen through twenty-four after signing this Agreement, the Area President will receive a base rate of twentyfive percent (25%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts.
- iii. For clients in the Area President's Book of Business with a signed PSA dated after the Area President's twenty-fourth month after signing this Agreement, the Area President will receive a base rate of twenty percent (20%) of the CFO Services revenue collected by Focus CFO on said clients. The base rate on these accounts shall increase, on a territory-by-territory basis, as the calendar year-todate collections on their Book of Business for a given territory reaches the following tiers.
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- $1 $550,000 = 20%
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- $550,001 $1,100,000 = 25%
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- $1,100,001 $1,650,000 = 30%
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- Revenue over $1,650,000 = 35%
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These tiers will be adjusted for inflation and other business factors from time to time.
For purposes of calculating the calendar year-to-date collections, revenue shall include CFO Services revenue.
B. If the Area President borrows a CFO from another Area President's Marketing Team, their base rate for that client will be reduced if the following situations apply:
- G. Focus CFO also has the sole discretion and authority to pay other forms of activity-based compensation to Area Presidents on an individual-by-individual and case-by-case basis.
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 its franchisees, who operate as independent contractors, based on the current Compensation Policy adopted by Focus CFO management. This policy is detailed in Attachment B of the Franchise Agreement. Focus CFO retains the right to modify the Compensation Policy, but must provide franchisees with at least thirty 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 the franchisee's prior written consent.
The compensation structure involves a base rate for Area Presidents, determined by the timing of when clients sign Professional Service Agreements (PSAs) relative to the franchisee's start date. For clients in the Area President's Book of Business with a signed PSA dated in months one through thirteen after signing the Franchise Agreement, the Area President will receive a base rate of thirty percent (30%) of the CFO Services revenue collected by Focus CFO on said clients for the life of these accounts. For clients with PSAs signed in months fourteen through twenty-four, the base rate is twenty-five percent (25%). For clients signed after the twenty-fourth month, the base rate starts at twenty percent (20%) but can increase based on the territory's calendar year-to-date collections, potentially reaching up to thirty-five percent (35%) as revenue exceeds $1,650,000.
It is important to note that all client payments are made directly to Focus CFO, who then distributes payments to the franchisee according to the Compensation Policy. The Compensation Policy also outlines scenarios where the base rate may be reduced, such as when an Area President borrows a CFO from another Area President's Marketing Team. Focus CFO also has the sole discretion and authority to pay other forms of activity-based compensation to Area Presidents on an individual-by-individual and case-by-case basis. The tiered rates will be adjusted for inflation and other business factors from time to time.