When does Focus Cfo recognize revenue from CFO services?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.5.1.
All contracts with clients for CFO Services must be entered into by Focus CFO and not by Franchisee.
Focus CFO's standard Professional Service Agreement
- ("PSA") is used on all client engagements.
The PSAs are prepared through a centralized preparation process to ensure contractual language, pricing and terms adhere to Focus CFO's standards.
Contract terms cannot deviate from standard document without the written consent of Focus CFO.
Franchisee is responsible for coordinating the preparation and successful execution of client PSAs through the centralized preparation process.
Franchisee is authorized to execute Focus CFO's standard PSA, as prepared and approved by Focus CFO through the centralized preparation process, on behalf of Focus CFO.
- 7.5.2.
Acceptance of new clients is subject to approval by Focus CFO.
Focus CFO will not enter into contracts with businesses or organizations that engage in activities that are not in harmony with the ethical standards of Focus CFO, requesting service outside Focus CFO's identified scope of services or will injure the quality of the Focus CFO Marks.
- 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.
- 7.5.4.
Franchisee and CFO licensee are not authorized to provide services to a prospective client until Focus CFO has received a signed copy of the full PSA (all pages) from the client.
Any payments received from businesses where Focus CFO does not have a signed PSA on file, will be returned, with no payments being made to Franchisee on these amounts.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
The 2025 Focus Cfo Franchise Disclosure Document states that all contracts with clients for CFO Services must be entered into by Focus CFO, not the franchisee. Focus CFO's standard Professional Service Agreement (PSA) is used for all client engagements, and these PSAs are prepared through a centralized process to ensure adherence to Focus CFO's standards. Franchisees coordinate the preparation and execution of these client PSAs but are authorized to execute the standard PSA on behalf of Focus CFO once it has been prepared and approved.
Client payments are made directly to Focus CFO, who then pays the franchisee as an independent contractor from the funds received. This payment is made in accordance with the Compensation Policy outlined in Attachment B of the Franchise Agreement. Franchisees and CFO licensees are not authorized to provide services to prospective clients until Focus CFO receives a signed copy of the full PSA from the client. If payments are received without a signed PSA on file, they will be returned, and no payments will be made to the franchisee.
In practical terms, this means a Focus CFO franchisee's compensation is directly tied to Focus CFO's ability to secure and maintain signed PSAs with clients. The franchisee will not be compensated for any services provided without a valid PSA in place. This arrangement protects Focus CFO's system and brand, ensuring standardized contracts and ethical business practices. It also places the responsibility of managing client contracts and payments on Focus CFO, which could be beneficial for franchisees who prefer not to handle these administrative tasks directly.