What are the two revenue sources for Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
rsigned 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. 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.
- 1.5. Franchisee may, but is not required to, hire employees and/or outside contractors ("Support Resources") for administrative support without the written consent of Focus CFO. Franchisee shall obtain Focus CFO's prior written approval for the hiring of any Support Resource who is designated by Franchisee as having a "public facing role" that utilizes the Focus CFO Marks.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Focus Cfo operates by offering Chief Financial Officer services on a fractional basis to small and medium-sized businesses. These services are delivered through Focus Cfo Licensees, referred to as CFOs, who use the Focus Cfo System. The Focus Cfo system uses unique and publicly recognized trademarks, service marks, logos and other commercial symbols including without limitation, the mark "Focus CFO®".
Area Presidents generate revenue from CFO Services revenue collected by Focus CFO. The base rate for Area Presidents varies depending on when the client signed a Professional Services Agreement (PSA). For clients in the Area President's Book of Business with a signed PSA dated in months one through thirteen after signing the Franchise Agreement, the Area President receives 30% of the CFO Services revenue. For clients with a PSA dated in months fourteen through twenty-four, the rate is 25%. For clients with a PSA dated after the Area President's twenty-fourth month, the base rate starts at 20% but can increase based on calendar year-to-date collections, potentially reaching 35% for revenue over $1,650,000.
Area Presidents can have their base rate reduced in certain situations. If an Area President borrows a CFO from another Area President's Marketing Team, a 5% deduction may apply, which is then paid to the Area President whose Marketing Team the CFO belongs to. This deduction applies if the CFO is borrowed from outside the Area President's home Region or if the CFO was recruited after November 1, 2022, and is borrowed from within the Area President's home Region. Conversely, if an Area President receives a lead through a corporate-sponsored marketing program, a 5% surcharge is added to the base rate for that client.
Area Presidents can also allocate a portion of their base rate to a CFO, another Area President, or a third-party referral source who significantly contributed to acquiring a new client. However, this compensation is deducted from the Area President's base rate. In the case of a third-party referral source, they must have a fully executed Focus CFO Referral Partner Agreement. These provisions are subject to modification by Focus CFO, as stated in the Franchise Agreement.