What is the role of the 'Equity Owner' in the Focus CFO Franchise Agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
XHIBIT C TO THE DISCLOSURE DOCUMENT**
FOCUS CFO GROUP, LLC
FRANCHISE AGREEMENT
FOCUS CFO GROUP, LLC FRANCHISE AGREEMENT
| This Franchise Agreement ("Agreement") made this day of, 20 | |
|---|---|
| ("Effective Date"), is by and between Focus CFO Group, LLC ("Focus CFO", "us" or "our") and | |
| ("Franchisee," "you" or "your"), and an individual (the "Equity | |
| Owner"). Focus CFO, Franchisee and Equity Owner are all bound to the terms of this Agreement. | |
| Franchisee and Equity Owner may be referred to collectively below as "Franchisee" or "Area | |
| President." This Agreement will not be effective until it has been countersigned by Focus CFO | |
| and delivered to Franchisee and Franchisee has paid the Franchise Fee as described below. |
PREAMBLES
WHEREAS, Focus CFO provides Chief Financial Officer services on a fractional basis ("CFO Services") primarily to small and medium size businesses using Focus CFO Licensees (referred to herein as "CFO" or "Licensee") to perform the CFO Services. As a result of considerable expenditure of time, effort and money, Focus CFO has developed and owns a unique system of providing fractional CFO Services (the "Focus CFO System" or "System") which is operated under certain unique and publicly recognized trademarks, service marks, logos and other commercial symbols including without limitation, the mark "Focus CFO®" ("Focus CFO Marks" or "Marks"). The Focus CFO System includes a variety of proprietary and confidential business methods, techniques, formats, designs, specifications, standards and procedures prescribed by or approved by Focus CFO, all of which may be improved further, developed or otherwise modified from time to time by Focus CFO; and
WHEREAS, Focus CFO grants to qualified business entities a right to own a Focus CFO Franchise and to market and offer CFO Services using the Focus CFO Marks as a Focus CFO Area President;
WHEREAS, Franchisee desires to acquire a Focus CFO Franchise and represents that Franchisee's Equity Owner has the skills to perform as an Area President;
WHEREAS, Franchisee understands and acknowledges the importance of Focus CFO's high and uniform standards of quality, operations and service and the necessity of operating its services in strict conformity with the Focus CFO System; and
WHEREAS, the defined terms herein have the definitions set forth in Attachment A.
NOW, THEREFORE, Focus CFO and Franchisee, intending to be legally bound, agree as follows:
1. GRANT OF FOCUS CFO FRANCHISE
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.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the Equity Owner has a central role in the franchise operation. Focus CFO requires that each franchisee operate as a business entity, such as a limited liability company, with one equity owner. This Equity Owner is designated as the Area President. The agreement specifies that Focus CFO, the franchisee, and the Equity Owner are all bound by the terms of the Franchise Agreement.
The Equity Owner, acting as the Area President, is responsible for generating new clients using Focus CFO's client development system and processes. While the Area President focuses on business development, they generally do not perform the actual CFO services for clients. These services are typically provided by separately licensed CFOs who have a non-exclusive license with Focus CFO.
However, the Equity Owner can provide CFO Services under specific conditions. They may perform CFO services on a limited basis under a separate CFO Licensing Agreement while still maintaining their role as Area President, or they can terminate the Franchise Agreement and apply for a non-exclusive license to operate solely as a CFO. It is also important to note that Focus CFO will conduct a background check on both the Franchisee and its Equity Owner as a condition of executing the Franchise Agreement.