What role must the franchisee fulfill in the operation of the Focus Cfo franchise business?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
N THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS**
Focus CFO only permits entities to become Franchisees. You will be required to execute the Franchise Agreement as a limited liability company or similar entity, and own 100% of such entity. You must directly participate in and supervise the franchise business as the identified Area
President. You must successfully complete our initial training program to our satisfaction before you commence operation of your business. You are required to devote sufficient time and effort to your business pursuant to the Franchise Agreement and your failure to do so could result in termination of your Franchise Agreement. You may, but are not required to, hire employees and/or outside contractors for administrative support without the written consent of Focus CFO, but you are fully responsible for them. You may only hire employees and/or outside contractors that will have a "public facing role" that will utilize the Focus CFO Marks upon prior written approval of Focus CFO. Neither you nor your spouse are required to sign a personal guaranty; however you will be bound to certain provisions of the Franchise Agreement as an equity owner of the franchise entity. The Franchise Agreement will require you to comply with a non-compete agreement and confidentiality obligations. Your spouse is not required to sign any non-compete or confidentiality agreement. Any employee and/or outside contractor that you hire will be required to sign a confidentiality and non-compete agreement whereby they acknowledge being bound to the same covenants as you are under the Franchise Agreement.
ITEM 16
RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must comply with our rules, policies and procedures in the Franchise Agreement, Playbook and any other materials and information provided by Focus CFO and may only offer and sell those services that we have approved.
You have limitations on the types of services which you can provide in order to provide consistency with the System and the brand. The approved services include developing an Area Plan, which includes coordinating group marketing activities, business development, client delivery activities, and supporting the recruitment of CFOs in your local area. We may change or modify the scope of approved services and there is no restriction on Focus CFO to make such changes.
ITEM 17
RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
This table lists important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Term of the franchise | Section 2.1 | Term is 10 years. |
| b. Renewal or extension | Section 2.2 | If, upon expiration of the Initial Term of the |
| of the term | franchise, you are still performing as an Area | |
| Provision | Section in Franchise Agreement | Summary |
| Agreement | President then you shall have the right to renew the franchise if certain conditions are met. | |
| c. Requirements for you to | Section 2.3 | (i) subject to state law, you execute general releases in a form similar to that in Exhibit G; (ii) you have complied with all provisions of the Franchise Agreement; (iii) you have satisfied all Performance Standards as set forth in Attachment E to the Franchise Agreement; (iv) you are not in default of any provisions of the Franchise Agreement or any other agreement between Franchisee and Focus CFO; and (v) we reserve the right to have you sign a new Franchise Agreement which may have terms that are materially different and may require additional training and certification requirements. A renewal fee of $2,500 is required to be paid by you to renew your franchise. |
| renew or extend | ||
| d. |
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, franchisees are required to operate as Area Presidents, focusing on generating new clients using Focus Cfo's client development system and processes. The franchisee must operate as a business entity, such as a limited liability company, with one equity owner who serves as the Area President. The Area President does not typically perform the CFO services themselves; instead, these services are provided by CFOs who have a non-exclusive license with Focus Cfo.
Focus Cfo emphasizes that the development of an area is contingent on the franchisee's ability to successfully implement the Focus Cfo System, meet the needs of Focus Cfo clients in the area, develop new clients, and work effectively with CFOs and clients. Franchisees are encouraged to utilize the marketing programs, tools, and training provided by Focus Cfo to jumpstart their marketing efforts and client development.
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 their Franchise Agreement and apply to become a licensed CFO with Focus Cfo. It is important to note that Focus Cfo will not refund any difference in fees between the Franchise Fee and the cost of obtaining a non-exclusive license if the franchisee chooses to switch to a CFO role.
Franchisees may hire employees or outside contractors for administrative support without written consent from Focus Cfo, but they are fully responsible for these support resources. Prior written approval is required for any support resource with a "public facing role" that utilizes Focus Cfo Marks, to protect the brand. Franchisees must comply with all employment laws and regulations and ensure that any hired personnel sign confidentiality and non-compete agreements.