When does Focus Cfo remit compensation payments to independent contractors?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
or authority to bind Focus CFO except as set forth in this Section 7 and provided for in Attachment F.
8. PAYMENTS; INDEPENDENT CONTRACTOR STATUS
- 8.1. Focus CFO shall pay Franchisee as an independent contractor according to the current Compensation Policy. The Compensation Policy is adopted by Focus CFO management. The current Compensation Policy is attached as Attachment B. Focus CFO has the right to modify the Compensation Policy by providing Franchisee with at least thirty (30) days' prior notice. However, Focus CFO cannot adjust each individual percentage rate set forth in the then-current Compensation Policy by more than one individual percentage point per year without Franchisee's prior written consent. See Attachment B for examples.
- 8.2. Franchisee is responsible for all Federal, state and local/city estimated tax payments and self-employment taxes on payments from Focus CFO. Focus CFO will remit to Franchisee compensation at a gross amount with no deduction for taxes. At the end of each year, Franchisee will receive a Form 1099 from Focus CFO.
- 8.3. This Agreement does not create a fiduciary relationship between the parties and nothing in this Agreement is intended to make either party a general or special agent, legal representative, subsidiary, joint venture, partner, employee or servant of the other for any purpose.
- 8.4. Franchisee acknowledges and agrees that, under this Agreement, Franchisee is and will be an independent contractor. Franchisee is not an employee of Focus CFO for any purpose, most particularly with respect to any mandated or other employee benefits or insurance coverage, tax, or contributions, or requirements pertaining to withholdings, levied of fixed, by any city, state, or federal governmental agency.
9. EXPENSES AND BENEFITS
- 9.1. Franchisee will incur its own expenses related to a business computer and software, printer, mobile phone, internet access, meals and entertainment, travel, automobile and mileage.
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 compensate franchisees as independent contractors based on the current Compensation Policy, which is established and can be modified by Focus CFO management with at least thirty days' prior notice to the franchisee. However, Focus CFO cannot adjust each individual percentage rate set forth in the then-current Compensation Policy by more than one individual percentage point per year without Franchisee's prior written consent. The current Compensation Policy is attached as Attachment B.
Focus CFO will pay franchisees from the funds received from clients in accordance with the Compensation Policy as set forth in Attachment B. However, any payments received from businesses where Focus CFO does not have a signed Professional Service Agreement (PSA) on file will be returned, and no payments will be made to the franchisee on these amounts.
Area Presidents performing billable services to Focus CFO clients will be paid for services performed directly by the franchisee before the termination date of the Franchise Agreement, provided Focus CFO collects these payments within 90 days of termination. These payments will be made to the franchisee within 120 days of the termination of the agreement. Franchisees are responsible for all Federal, state and local/city estimated tax payments and self-employment taxes on payments from Focus CFO. Focus CFO will remit to Franchisee compensation at a gross amount with no deduction for taxes. At the end of each year, Franchisee will receive a Form 1099 from Focus CFO.