What does Focus Cfo require the Franchisee to do with respect to the Entity?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Franchisee shall obtain legal and tax advice with respect to this issue.
- 1.3.
Franchisee's Equity Owner shall operate the Franchise as an Area President, working to generate new clients using Focus CFO's client development system and processes.
Except as set forth in Section 1.4, the Area President does not perform the CFO Services for clients of Focus CFO.
Rather, CFO Services will be performed by CFOs who have a non-exclusive license with Focus CFO to perform authorized CFO Services using the Focus CFO Marks to clients who have signed a Professional Services Agreement with Focus CFO.
- 1.4.
If Franchisee expresses an intent to provide CFO Services, Franchisee may either: (i) perform CFO Services on a limited basis as a CFO, as set forth in Attachment B Section 1.E.i., under a separate CFO Licensing Agreement with Focus CFO while maintaining its status as an Area President under this Agreement; or (ii) terminate this Agreement and its right to operate as an Area President and apply with Focus CFO to acquire a non-exclusive license to operate as a CFO under a Focus CFO Licensing Agreement.
Under this Section 1.4(ii), Focus CFO will not refund any difference, if applicable, between the Franchise Fee paid by Franchisee under this Agreement and any payment required to obtain a non-exclusive license.
- 1.5.
Franchisee may, but is not required to, hire employees and/or outside contractors ("Support Resources") for administrative support without the written consent of Focus CFO.
Franchisee shall obtain Focus CFO's prior written approval for the hiring of any Support Resource who is designated by Franchisee as having a "public facing role" that utilizes the Focus CFO Marks.
Such approval by Focus CFO is necessary in order to protect the Focus CFO brand.
Franchisee shall take full responsibility for all Support Resources Franchisee hires and shall comply with all federal, state and local employment laws and regulations.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo requires that franchisees enter into the agreement as a business entity, such as a limited liability company or similar entity, referred to as the "Entity." This entity must have one equity owner who will serve as an Area President. Focus Cfo also requires the franchisee to obtain legal and tax advice regarding this business structure. The franchisee's equity owner, acting as the Area President, is responsible for operating the franchise and generating new clients using Focus Cfo's client development system and processes.
Generally, the Area President does not directly perform CFO services for clients. Instead, these services are provided by CFOs who have a separate non-exclusive license with Focus Cfo. However, if a franchisee wishes to provide CFO services, they have two options: they can perform CFO services on a limited basis under a separate CFO Licensing Agreement while maintaining their role as an Area President, or they can terminate the Franchise Agreement and apply for a non-exclusive license to operate solely as a CFO under a Focus Cfo Licensing Agreement. If the franchisee chooses to switch to a CFO license, Focus Cfo will not refund any difference between the initial franchise fee and the payment required for the CFO license.
Focus Cfo also outlines requirements related to support resources hired by the franchisee. While franchisees can hire employees or outside contractors for administrative support without prior written consent from Focus Cfo, they must obtain written approval before hiring any support resource designated as having a "public facing role" that utilizes Focus Cfo's marks. This approval is necessary to protect the Focus Cfo brand. The franchisee is fully responsible for all support resources they hire and must comply with all applicable employment laws and regulations. Franchisees must also ensure they have appropriate insurance coverage for all services performed by their support resources, and Focus Cfo may provide minimum insurance requirements in writing that the franchisee must follow. Focus Cfo must be named as an additional insured on the franchisee's insurance policy.