How are the Contract Staffing Continuing Fees for a Management Recruiters franchise deducted?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
The Contract Staffing Continuing Fees are deducted from your Gross Margin account as part of the weekly calculation of Franchisee's Contract Staffing Share.
Gross Margin means sums billed by Franchisor to customers of the Franchise Business on account of temporary and contract employee placement services after deducting therefrom all Temporary and Contract Employee Expenses attributable to the temporary and contract employees.
As long as your Franchise Agreement remains in effect and you are not in default, we will pay you your Franchisee's Contract Staffing Share on the Wednesday following the twenty-ninth (29th) day after the end of each weekly Accounting Period (which ends on Sunday).
If that Wednesday is a banking holiday, then we will pay to you your Franchisee's Contract Staffing Share on the next business banking day.
See Section 5 and Section 6 of the Franchise Agreement for a detailed discussion of the calculation of your Franchisee's Contract Staffing Share.
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the Contract Staffing Continuing Fees are deducted from the franchisee's Gross Margin account as part of the weekly calculation of the Franchisee's Contract Staffing Share. Gross Margin is defined as the sums billed by Management Recruiters to customers for temporary and contract employee placement services, less all Temporary and Contract Employee Expenses attributable to those employees.
The franchisee's Contract Staffing Share is paid out on the Wednesday following the twenty-ninth day after the end of each weekly Accounting Period, which concludes on a Sunday. If that Wednesday falls on a banking holiday, the payment is made on the next business banking day. The specific calculation of the Franchisee's Contract Staffing Share is detailed in Section 5 and Section 6 of the Franchise Agreement.
The Contract Staffing Continuing Fee itself is the sum of 4.5% of Contract Staffing Payroll plus 18% of the Gross Margin for temporary and contract employee staffing. Contract Staffing Payroll refers to any gross wages funded by Hire Quest, L.L.C. or its affiliates on behalf of the temporary and contract employees. Franchisees should refer to the Franchise Agreement for a comprehensive understanding of how their share is calculated and when they can expect to receive payment.