In what form must the Initial Franchise Fee be paid to Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
eg)
ITEM 5: INITIAL FEES
You must pay to us an initial franchise fee (the "Initial Franchise Fee") when you sign the Franchise Agreement. The Initial Franchise Fee is $40,000. This Initial Franchise Fee will be paid by you in cash contemporaneously with the execution of your Franchise Agreement. In Franchisor's sole discretion, certain qualified franchisees may be allowed to pay the Initial Franchise Fee via a temporary deduction from the share we pay you pursuant to the franchise agreement equal to 2% of all Franchise Receivables (as that term is defined in the Franchise Agreement) until the entire Initial Franchise Fee is fully recovered.
We offer a Veteran's discount to both honorably discharged veterans of the United States armed forces and to the spouses of active-duty United States military members. In these instances, the Initial Franchise Fee is discounted to $32,000. A copy of your DD214 or evidence of current active-duty status will be required to receive this discount.
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the standard Initial Franchise Fee is $40,000, payable in cash when signing the Franchise Agreement. However, Management Recruiters may, at its discretion, allow qualified franchisees to pay the Initial Franchise Fee through a temporary deduction. This deduction would equal 2% of all Franchise Receivables until the entire Initial Franchise Fee is recovered.
Management Recruiters also offers a discount on the Initial Franchise Fee for honorably discharged veterans of the United States armed forces and spouses of active-duty United States military members, reducing the fee to $32,000. To receive this discount, a copy of the DD214 form or evidence of current active-duty status is required.
It is important to note that all Initial Franchise Fees are fully earned by Management Recruiters upon signing the franchise agreement and are non-refundable under any circumstances. This is a common practice in franchising, as the fee compensates the franchisor for granting the franchise and providing initial support and training.