Who pays the IT Services Fee before the Focus Cfo franchisee begins earning compensation?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
gh our approved vendor is $550 per month.
- (3) The IT package is currently provided by our approved vendor, C-Forward, who will provide an Office 365 license, which includes access to Focus CFO e-mail, Microsoft Office software (Excel, Word, Outlook and PowerPoint), Microsoft Teams video conferencing platform and Microsoft OneDrive file hosting and backup service. The IT package also includes a security monitoring service of the Franchisee's business computer and IT support services as described in Attachment G to the Franchise Agreement. Focus CFO will pay the IT Services Fee until the Franchisee begins to earn compensation. The Franchisee will be responsible for the cost once the Franchisee begins to earn compensation. The current cost is approximately $30 per pay.
- (4) You are not authorized to perform any form of direct outreach marketing, solicitation or networking activities for lead generation or building a referral network outside of the geographic territory granted to you under the Franchise Agreement. In order to perform these activities outside of your geographic territory, you will be required to purchase an additional territory. Focus CFO reserves the right to approve or deny your request to purchase an additional territory. If you are approved to purchase an additional territory, you will be required to pay a fee equal to the thencurrent franchise fee and you may be required to sign the then-current Franchise Agreement.
ITEM 7
ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee | $35,000 (Note 1) | Lump Sum | On signing the Franchise Agreement | Focus CFO | |
| Real Estate and | $0 - $4,000 | Per agreement | Per agreement | Landlord | |
| Improvements | (Note 2) | with landlord | with landlord | ||
| Office Equipment/General Business Expenses | $0-$15,000 (Note 3) | Partially lump sum with some ongoing expense | Prior to beginning operations, with some recurring | Third Party Vendors | |
| Additional Training | $0-$5,000 | Lump sum | Per agreement | Third Party | |
| (Note 4) | with Vendor | Vendors | |||
| Additional Funds – 3 | $1,000-$5,000 | As incurred | As incurred | Third Party | |
| Months | (Note 5) | Vendors | |||
| TOTAL | $36,000 to $64,000 | (Does not include real estate costs) | ## Notes: |
- (1) The Franchise Fee consists of: (i) a payment of $17,000 to obtain a franchise; and (ii) a one-time training fee of $18,000. We do not finance this fee and it cannot be paid in installments. The entire fee is due upfront. If we terminate the Franchise Agreement as a result of an unsatisfactory background check, we will refund the Franchise Fee in full. Except for this circumstance, the Franchise Fee is nonrefundable.
- (2) You will be required to maintain an office, which can be in your home. You may choose to obtain additional office space outside your home.
Source: Item 6 — Other Fees (FDD pages 11–13)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, Focus Cfo covers the IT Services Fee for franchisees until they start earning compensation. The IT package, provided by C-Forward, includes an Office 365 license with access to Focus CFO e-mail, Microsoft Office software, the Microsoft Teams video conferencing platform, and Microsoft OneDrive. It also features security monitoring and IT support services, as detailed in Attachment G of the Franchise Agreement. Once the franchisee begins to receive compensation, they become responsible for the IT Services Fee, which is currently $30 per pay.
This arrangement benefits new Focus Cfo franchisees by reducing their initial financial burden. By having Focus Cfo cover the IT costs upfront, franchisees can allocate their resources to other essential startup expenses, such as marketing and operational costs. This support allows franchisees to focus on building their client base and generating revenue without the immediate pressure of additional IT expenses.
However, it is important for prospective franchisees to understand when they will likely begin earning compensation and thus become responsible for the IT Services Fee. This transition point will impact their financial planning and budgeting. Additionally, Focus Cfo retains the right to change the IT services and vendor, potentially affecting the services included in the package and its overall value. Franchisees should stay informed about any changes to the IT services to ensure they align with their business needs.
Overall, the initial coverage of IT Services Fees by Focus Cfo provides a significant advantage to new franchisees, easing their financial entry into the franchise system. Franchisees should carefully consider the implications of this arrangement and prepare for the eventual transfer of responsibility for these fees once they start earning compensation.