What responsibility does a Focus Cfo franchisee have for ensuring compliance with employment laws and regulations for their Support Resources?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall take full responsibility for all Support Resources Franchisee hires and shall comply with all federal, state and local employment laws and regulations.
Franchisee shall require each Support Resource to execute a confidentiality, non-solicitation and non-competition agreement whereby the Support Resource acknowledges being bound to the same covenants as the Equity Owner of the Franchise under the terms of this Agreement.
The Franchisee will provide a copy of this executed agreement to Focus CFO within ten (10) business days of Franchisee hiring the Support Resource.
Franchisee agrees that Focus CFO is not the employer for any Support Resource Franchisee hires.
Franchisee shall ensure that all Support Resources understand that they are employees of Franchisee and have no relationship, employment or otherwise, with Franchisor.
All management, personnel and training requirements are at Franchisee's discretion and are Franchisee's sole responsibility.
As set forth in Section 10 below, 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 shall have the right to hold Franchisee solely liable and responsible for any breach of this Agreement caused by the failure by any Support Resource of Franchisee to follow the Focus CFO System.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, a franchisee bears full responsibility for ensuring compliance with all federal, state, and local employment laws and regulations concerning any Support Resources they hire. This means the franchisee, not Focus Cfo, is considered the employer of these Support Resources and must adhere to all applicable labor laws.
To further protect Focus Cfo, the franchisee must ensure that each Support Resource signs a confidentiality, non-solicitation, and non-competition agreement, mirroring the covenants the franchisee agreed to. A copy of this agreement must be provided to Focus Cfo within ten business days of hiring the Support Resource. This requirement ensures that Support Resources are bound by similar restrictions as the franchisee, safeguarding Focus Cfo's interests.
Additionally, Focus Cfo retains the right to hold the franchisee solely liable for any breach of the Franchise Agreement caused by a Support Resource's failure to adhere to the Focus Cfo System. The franchisee is also responsible for securing appropriate insurance coverage for the services performed by all Support Resources. Focus Cfo may provide written minimum insurance requirements that the franchisee must follow, and Focus Cfo must be named as an additional insured on the franchisee's insurance policy. These stipulations emphasize the franchisee's responsibility for the actions and liabilities of their Support Resources, while also protecting Focus Cfo from potential legal and financial repercussions.