What is the primary agreement proposed for use regarding the Focus Cfo franchise offering?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Focus CFO provides Chief Financial Officer services on a fractional basis ("CFO Services") primarily to small and medium size businesses using Focus CFO Licensees (referred to herein as "CFO" or "Licensee") to perform the CFO Services. As a result of considerable expenditure of time, effort and money, Focus CFO has developed and owns a unique system of providing fractional CFO Services (the "Focus CFO System" or "System") which is operated under certain unique and publicly recognized trademarks, service marks, logos and other commercial symbols including without limitation, the mark "Focus CFO®" ("Focus CFO Marks" or "Marks"). The Focus CFO System includes a variety of proprietary and confidential business methods, techniques, formats, designs, specifications, standards and procedures prescribed by or approved by Focus CFO, all of which may be improved further, developed or otherwise modified from time to time by Focus CFO; and
WHEREAS, Focus CFO grants to qualified business entities a right to own a Focus CFO Franchise and to market and offer CFO Services using the Focus CFO Marks as a Focus CFO Area President;
WHEREAS, Franchisee desires to acquire a Focus CFO Franchise and represents that Franchisee's Equity Owner has the skills to perform as an Area President;
WHEREAS, Franchisee understands and acknowledges the importance of Focus CFO's high and uniform standards of quality, operations and service and the necessity of operating its services in strict conformity with the Focus CFO System; and
WHEREAS, the defined terms herein have the definitions set forth in Attachment A.
NOW, THEREFORE, Focus CFO and Franchisee, intending to be legally bound, agree as follows:
1. GRANT OF FOCUS CFO FRANCHISE
1.1. Subject to the provisions of this Agreement, Focus CFO grants to Franchisee the nonexclusive right to join Focus CFO as an independently operated business using the Focus CFO System and Focus CFO Marks (the "Franchise").
- 1.2.
Focus CFO requires that Franchisee enter this Agreement as a business entity such as a limited liability company or similar entity (collectively, the "Entity") and such entity shall have one equity owner who shall serve as an Area President.
Source: Item 22 — Contracts (FDD page 37)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the primary agreement is the Franchise Agreement, which grants the franchisee the nonexclusive right to join Focus Cfo as an independently operated business using the Focus Cfo System and Focus Cfo Marks. Focus Cfo requires that the franchisee enter into the agreement as a business entity, such as a limited liability company, with one equity owner who will serve as an Area President.
The Franchise Agreement outlines the terms and conditions under which the franchisee can operate, including the use of Focus CFO's system, marks, and support. The franchisee, operating as an Area President, is responsible for generating new clients using Focus CFO's client development system. The Area President does not typically perform the CFO services themselves; instead, these services are provided by CFOs who have a non-exclusive license with Focus CFO.
Notably, the Franchise Agreement also addresses scenarios where a franchisee may want to provide CFO Services themselves. In such cases, the franchisee has the option to either perform CFO services on a limited basis under a separate CFO Licensing Agreement while maintaining their status as an Area President or terminate the Franchise Agreement and apply for a non-exclusive license to operate as a CFO under a Focus CFO Licensing Agreement. If the franchisee chooses to switch to a licensing agreement, Focus CFO will not refund any difference between the initial franchise fee and the payment required for the license.