Where is the Back Office Services Fee defined for Management Recruiters franchisees?

According to Management Recruiters' 2024 Franchise Disclosure Document, the Back Office Services Fee is defined within the franchise agreement. Specifically, the "Back Office Services" are described in Section 7.6 of the agreement, outlining the services provided by Management Recruiters to the franchisee. The "Back Office Services Fee" itself is defined as $950.00 per month, payable by the franchisee to Management Recruiters in exchange for these services. This fee is a fixed amount.

The services covered by this fee include updates and maintenance of the billing and payroll system, invoicing for recruiter and contract staffing services, accounts receivable and cash receipts application services, basic accounting assistance (including profit and loss statements and balance sheets), collections assistance, accounts payable assistance, and optional liaison services for benefits and payroll administration. The fee is subtracted directly from the franchisee's share and reflected on the franchisee's settlement statement.

This arrangement means that a Management Recruiters franchisee will pay a fixed monthly fee of $950 for a suite of back-office support services provided by the franchisor. This fee structure provides predictability in expenses, but it's crucial for prospective franchisees to evaluate whether the included services align with their business needs and justify the cost. Franchisees should also understand that while Management Recruiters provides collections assistance, the ultimate responsibility for collections rests with the franchisee.