Who is responsible for Federal, state, and local/city estimated tax payments on payments from Focus CFO?

According to Focus Cfo's 2025 Franchise Disclosure Document, the franchisee is responsible for all Federal, state, and local/city estimated tax payments and self-employment taxes on payments they receive from Focus CFO. Focus CFO will pay the franchisee the gross amount without deducting any taxes. At the end of each year, Focus CFO will provide the franchisee with a Form 1099 for tax reporting purposes. This arrangement reflects the franchisee's status as an independent contractor.

This means that as a Focus CFO franchisee, you will need to budget for and remit estimated taxes on your earnings throughout the year. Failing to do so could result in penalties from tax authorities. It is important to consult with a tax professional to understand your obligations and ensure compliance with all applicable tax laws.

This is a common arrangement in franchising where the franchisee is treated as an independent contractor rather than an employee. This structure shifts the responsibility for tax payments and benefits (like health insurance or retirement contributions) to the franchisee. While it offers more autonomy, it also requires careful financial planning and adherence to tax regulations.