Can the tiers for base rate increases for Focus CFO Area Presidents be adjusted?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
These tiers will be adjusted for inflation and other business factors from time to time.
For purposes of calculating the calendar year-to-date collections, revenue shall include CFO Services revenue.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the tiers for base rate increases for Area Presidents can be adjusted. Specifically, the revenue tiers that trigger increases in the base rate for CFO Services revenue collected by Focus CFO are subject to change. These adjustments will account for factors like inflation and other relevant business considerations. For example, the tiers are initially set as follows:
- $1 - $550,000 = 20%
- $550,001 - $1,100,000 = 25%
- $1,100,001 - $1,650,000 = 30%
- Revenue over $1,650,000 = 35%
Focus CFO also retains the right to modify the overall Compensation Policy as outlined in the Franchise Agreement. However, Focus CFO cannot adjust each individual percentage rate set forth in the Compensation Policy by more than one individual percentage point per year without the franchisee's prior written consent. For instance, the tiered rates of the Area President compensation scale can be reduced from 35% to 34%, 30% to 29%, 25% to 24% and 20% to 19% in a given year. This ensures that while Focus CFO can make changes, there are limitations in place to protect the Area President's potential earnings.