What is excluded from 'Contract Staffing Gross Billings' when calculating fees for a Management Recruiters franchise?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
"Contract Staffing Gross Billings" shall mean gross amount of all invoices issued to clients resulting, directly or indirectly, from or in connection with all services, consultation, assistance, or sales provided from, or through, or attributable to the Contract Staffing Services (as opposed to Recruiter Services) of the Franchise Business regardless of whether such amounts are collectible or uncollectible and further regardless of where or to whom such services are provided, including without limitation, services of temporary employees, excluding bona fide refunds and adjustments.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the Contract Staffing Gross Billings are used to calculate fees for the franchise. Contract Staffing Gross Billings means the gross amount of all invoices issued to clients resulting from services related to the Contract Staffing Services of the Franchise Business. This includes services of temporary employees, regardless of whether the amounts are collectible or uncollectible, and regardless of where or to whom the services are provided.
The only exclusion from Contract Staffing Gross Billings is bona fide refunds and adjustments. This means that any legitimate refunds or adjustments made to client invoices are subtracted from the total gross billings when calculating the fees owed to Management Recruiters.
For a prospective Management Recruiters franchisee, understanding this definition is crucial because it directly impacts the calculation of continuing fees. Franchisees need to accurately track and report their gross billings, while also accounting for any legitimate refunds or adjustments. This ensures that the correct fees are paid to the franchisor and avoids any potential disputes or discrepancies.