What right does Focus Cfo grant to the franchisee during the term of the agreement regarding CFO Services?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
1.1. Subject to the provisions of this Agreement, Focus CFO grants to Franchisee the nonexclusive right to join Focus CFO as an independently operated business using the Focus CFO System and Focus CFO Marks (the "Franchise").
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, Focus Cfo grants the franchisee the nonexclusive right to join Focus CFO as an independently operated business using the Focus CFO System and Focus CFO Marks. The franchisee enters the agreement as a business entity, such as a limited liability company, with one equity owner serving as an Area President. The Area President is expected to generate new clients using Focus CFO's client development system and processes.
Generally, the Area President does not perform the CFO Services for clients. Instead, these services are performed by CFOs who have a non-exclusive license with Focus CFO. These licensed CFOs use the Focus CFO Marks to serve clients who have signed a Professional Services Agreement with Focus CFO.
However, if the franchisee wants to provide CFO Services, they have two options. First, they can perform CFO Services on a limited basis as a CFO under a separate CFO Licensing Agreement with Focus CFO, while still maintaining their status as an Area President. Second, they can terminate the Franchise Agreement and their right to operate as an Area President and then apply for a non-exclusive license to operate as a CFO under a Focus CFO Licensing Agreement. If the franchisee chooses to terminate the agreement to become a CFO, Focus CFO will not refund any difference between the Franchise Fee and the fee required for the non-exclusive license.