Where can I find a form of the Computer Services Agreement for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
We have developed computer software to be used with the management and operation of our Franchise Business. We are the only approved supplier of this management and operations software for our franchised businesses. We will sublicense this software to you on the same terms and conditions as offered to all of our Franchisees similarly situated and you will be required to utilize the software in the operation of your Franchise Business in accordance with the specifications in the Brand Standards Materials. A form of the Computer Services Agreement is attached as Exhibit B to the Franchise Agreement. If you assign the Franchise Agreement, the Computer Services Agreement must be assigned to the new franchisee. In addition, you must pay for the actual cost of all software and published updates. At your expense, before you begin operations of the Franchise Business, you must purchase from us or a vendor approved by us the computer hardware and related equipment required for the operation and use of the software. During our last fiscal year ended December 31, 2023, we and our affiliates had zero revenues from franchisees purchasing from us software, computer equipment, or any other items for their businesses. All hardware and related equipment must meet the specifications provided in the Brand Standards Manual. Also, during the term of the Franchise Agreement, you must allow us access via telephone modem to your computer system to enable us to periodically upload and download data to facilitate our performance of automated payroll and related services.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, a form of the Computer Services Agreement is included as Exhibit B to the Franchise Agreement. Management Recruiters requires franchisees to use specific management and operations software and will sublicense this software to franchisees under the same terms offered to similarly situated franchisees.
As a Management Recruiters franchisee, you are required to use the software in accordance with the specifications outlined in the Brand Standards Materials. If the Franchise Agreement is assigned to a new franchisee, the Computer Services Agreement must also be assigned. Franchisees are responsible for the actual costs of the software and any published updates.
Before beginning operations, franchisees must purchase the necessary computer hardware and related equipment from Management Recruiters or an approved vendor. All hardware must meet the specifications in the Brand Standards Manual. Management Recruiters also requires access to the franchisee's computer system via telephone modem to upload and download data for automated payroll and related services. The FDD states that Management Recruiters and its affiliates had zero revenues from franchisees purchasing software, computer equipment, or other items during the last fiscal year, which ended December 31, 2023.