How does a Management Recruiters franchisee pay for the back office services provided by the franchisor?

5.2. Recruiter Continuing Fees, Collection Expenses, Marketing and Public Relations, Security Deposit. Franchisee's Recruiter Share shall be calculated by deducting from the Net Cash In collected during each Accounting Period the following amounts:

• the Recruiter Continuing Fees;
• Franchisee's pro-rata share of all legal and other out-of-pocket collection expenses incurred by Franchisor related to Franchise Receivables;
• at Franchisor's discretion, any other amounts owed by Franchisee to Franchisor or any of its Affiliates, provided such amounts are disclosed to Franchisee;
• the Marketing and Public Relations Fee;
• the Back Office Services Fee; and
• 1% of Gross Funds until the entire Security Deposit is collected.

Back Office Services Fee shall mean nine hundred fifty dollars ($950.00) per month payable from Franchisee to Franchisor in exchange for the Back Office Services.

• 1. Fees and Expenses. For the Services to be performed hereunder, Franchisee shall pay to Franchisor the fixed Back Office Services Fee as defined in Franchisor the Franchise Agreement (the "Fee") to be subtracted directly from Franchisee's Share and reflected on Franchisee's Settlement Statement.

• 7.6. Back Office Services. In exchange for the Back Office Services Fee, Franchisor shall provide Franchisee the following services:

  • updates to and maintenance of Franchisor's billing and payroll system;
  • invoicing customers for Recruiter Services and Contract Staffing Services;
  • accounts receivable and cash receipts application services;
  • basic accounting assistance including preparation of monthly profit and loss statements and balance sheets for the Franchise Business;
  • collections assistance including calls and demand letters, provided, however, that Franchisee shall bear ultimate responsibility for collections;
  • accounts payable assistance including payment of regular monthly, quarterly, and annual vendor invoices (which amounts Franchisee will advance to Franchisor) on behalf of Franchisee; and
  • optional liaison services between Franchisee and any professional employment organization or similar organization Franchisee selects to assist with benefits and payroll administration of internal staff.

Source: Item 23 — RECEIPTS (FDD pages 67–327)