Is the professional liability insurance coverage for Focus Cfo and its franchisees subject to policy limits?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus CFO provides its franchisees with business insurance coverage that includes general liability, crime, and employment practices insurance. However, this coverage is subject to standard limitations and indemnification provisions typical for a professional service business. The availability of this insurance is also contingent upon the franchisee's ongoing compliance with Focus CFO's policies and standard operating procedures.
Focus CFO explicitly states that it does not guarantee the provided insurance coverage will be adequate to fully protect the franchisee. Franchisees are permitted to obtain their own additional insurance if they deem it necessary. 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 may employ.
Therefore, a Focus Cfo franchisee should carefully review the limitations and indemnification provisions of the business insurance coverage provided by Focus CFO. They should also assess whether the coverage is sufficient for their specific needs and consider obtaining additional insurance to cover any gaps, especially concerning the services performed by support resources. Understanding the policy limits and potential liabilities is crucial for managing risk as a Focus Cfo franchisee.