Does the professional liability insurance carried by Focus Cfo cover both the company and its franchisees and licensees?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 9.6. Franchisee may be required to incur costs to attend required training as set forth in Section 7 and in the accompanying Attachment C.
10. LIABILITY INSURANCE; INDEMNIFICATION
- 10.1. Business Insurance Coverage. Focus CFO will provide Franchisee with reasonable business insurance coverage (general liability, crime, and employment practices), subject to standard limitations and indemnification provisions for a professional service business and Franchisee's ongoing compliance with Focus CFO's policies and standard operating procedures. Franchisee acknowledges and agrees that Focus CFO does not represent or warrant that such insurance coverage is adequate to protect Franchisee and nothing in this Agreement restricts Franchisee from obtaining its own insurance. This business insurance coverage extends only to the Area President of the Franchisee's business entity. It does not extend to other Support Resources of the Franchisee's business entity. Franchisee shall be responsible for ensuring it has all appropriate insurance in place to cover the services performed by all Support Resources of Franchisee. Focus CFO may provide Franchisee with, in writing, minimum insurance requirements for Support Resources of Franchisee that Franchisee must follow. Focus CFO shall be named as an additional insured on the Franchisee's insurance policy.
- 10.2. Business Insurance Renewal.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus CFO will provide franchisees with reasonable business insurance coverage, including general liability, crime, and employment practices insurance. This coverage is subject to standard limitations and indemnification provisions typical for a professional service business, and it requires the franchisee's ongoing compliance with Focus CFO's policies and standard operating procedures.
However, the business insurance coverage provided by Focus Cfo extends only to the Area President of the franchisee's business entity and does not cover other support resources. The franchisee is responsible for securing appropriate insurance to cover the services performed by all support resources. Focus CFO may provide written minimum insurance requirements for the franchisee's support resources, which the franchisee must follow.
Focus CFO does not guarantee that the provided insurance coverage is adequate to fully protect the franchisee, and franchisees are not restricted from obtaining their own insurance. Franchisees are also required to sign an annual statement certifying compliance with Focus CFO's policies and disclosing any circumstances that could lead to a legal claim against Focus CFO, potentially resulting in an insurance claim.