Does the Management Recruiters franchise agreement include a schedule that lists the locations?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
nchise as a result of a decision to withdraw from a marketing area or the state or territory in which Franchisee's business is located. In the event Franchisor withdraws, it will notify Franchisee of its decision in writing. Thereafter, Franchisee will be allowed to continue to operate a competitive business and will be granted sixty (60) days following receipt of Franchisor's notice of withdrawal to cease use of the Marks.
4. LOCATION
4.1. Location. This Agreement grants Franchisee the right to operate the Franchise Business from a single non-exclusive Location identified on Schedule 1, attached hereto, which must be approved by Franchisor in its sole discretion. Franchisee shall not operate or permit any other party to operate any business other than the Franchise Business out of the Location. Franchisee agrees and acknowledges that this Agreement does not grant Franchisee any exclusive territory.
- 4.1.1. Site Selection.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to the 2024 Management Recruiters Franchise Disclosure Document, the franchise agreement does include a schedule that identifies the location from which the franchisee will operate. Section 4.1 of the agreement states that the franchisee has the right to operate their franchise business from a single, non-exclusive location. This location is specifically identified on Schedule 1, which is attached to the franchise agreement. However, the franchisor retains the right to approve the location in its sole discretion.
This means that before a Management Recruiters franchise can begin operations, the franchisor must give final approval of the proposed business location. While the franchisor's consent cannot be unreasonably withheld, the franchisee cannot operate from a location that has not been approved. This approval process is a standard practice in franchising, allowing the franchisor to ensure that each location meets brand standards and has the potential to succeed.
Furthermore, the Management Recruiters franchise agreement stipulates that the franchisee is not permitted to operate any business other than the franchise business from the approved location. The agreement also clarifies that the franchisee is not granted any exclusive territory. If a franchisee wishes to relocate their Management Recruiters business, they must obtain written approval from the franchisor for the new location.
Schedule 1 is referenced as the place where the location is identified. Schedule 2 and Exhibit A are also included in the franchise agreement, with Schedule 2 listing the principals and Exhibit A containing the Franchisee Nondisclosure and Noncompetition Agreement.