What are 'Back Office Services' as provided by Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.6. Back Office Services. In exchange for the Back Office Services Fee, Franchisor shall provide Franchisee the following services:
- updates to and maintenance of Franchisor's billing and payroll system;
- invoicing customers for Recruiter Services and Contract Staffing Services;
- accounts receivable and cash receipts application services;
- basic accounting assistance including preparation of monthly profit and loss statements and balance sheets for the Franchise Business;
- collections assistance including calls and demand letters, provided, however, that Franchisee shall bear ultimate responsibility for collections;
- accounts payable assistance including payment of regular monthly, quarterly, and annual vendor invoices (which amounts Franchisee will advance to Franchisor) on behalf of Franchisee; and
- optional liaison services between Franchisee and any professional employment organization or similar organization Franchisee selects to assist with benefits and payroll administration of internal staff.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Back Office Services are provided to the franchisee in exchange for a Back Office Services Fee. These services include updates to and maintenance of Management Recruiters' billing and payroll system, invoicing customers for Recruiter Services and Contract Staffing Services, accounts receivable and cash receipts application services, and basic accounting assistance. The accounting assistance includes the preparation of monthly profit and loss statements and balance sheets for the Franchise Business.
Management Recruiters also provides collections assistance, including calls and demand letters. However, the franchisee bears the ultimate responsibility for collections. Additionally, Management Recruiters offers accounts payable assistance, which includes the payment of regular monthly, quarterly, and annual vendor invoices. The franchisee must advance these amounts to Management Recruiters.
Finally, Management Recruiters provides optional liaison services between the franchisee and any professional employment organization or similar organization the franchisee selects to assist with benefits and payroll administration of internal staff. These Back Office Services are designed to support the franchisee in managing the financial and administrative aspects of their business.