What is the trend in the number of total Focus Cfo outlets from 2022 to 2024?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| 2022 | 105 | 126 | +21 | |
| Franchised | 2023 | 126 | 82 | -44 |
| 2024 | 82 | 59 | -23 | |
| 2022 | 0 | 0 | 0 | |
| Company Owned | 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | |
| 2022 | 105 | 126 | +21 | |
| Total Outlets | 2023 | 126 | 82** | -44* |
| 2024 | 82 | 59** | -23* |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 33–37)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the total number of outlets has decreased from 2022 to 2024. At the start of 2022, there were 105 total outlets, which increased to 126 by the end of the year, representing a net increase of 21 outlets. However, in 2023, the number of outlets decreased from 126 at the start of the year to 82 by the end of the year, a net decrease of 44 outlets. This downward trend continued into 2024, with the number of outlets decreasing from 82 at the start of the year to 59 by the end of the year, reflecting a net decrease of 23 outlets.
This trend indicates a significant contraction in the Focus Cfo franchise system over the three-year period. A prospective franchisee should investigate the reasons behind this decline, which could include factors such as franchisees leaving the system, terminations, or a change in the company's business model as indicated by the note about offering existing franchisees the opportunity to switch to a license agreement. Understanding the reasons for this decrease is crucial for assessing the stability and future prospects of the franchise.
The shift from franchise agreements to license agreements, as noted in the FDD, appears to be a significant factor in the reduction of franchise outlets. The document mentions that 43 CFOs terminated their franchise agreements in 2023 and 29 in 2024 to sign license agreements. This transition suggests a strategic change in how Focus Cfo operates and partners with individuals, potentially impacting the support, obligations, and revenue structures for those involved. A potential franchisee should understand the differences between the franchise and license models and how these changes might affect their investment and operational responsibilities.
Given these changes, it is important for potential franchisees to discuss with Focus Cfo the long-term strategic vision for the franchise model versus the license model. Understanding the support and obligations associated with each model, as well as the franchisor's plans for future growth and franchisee support, is essential for making an informed investment decision. This due diligence will help a prospective franchisee assess the risks and opportunities associated with joining the Focus Cfo system in its current state.