When is the Initial Franchise Fee for Management Recruiters due?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 Franc
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the Initial Franchise Fee is due when you sign the Franchise Agreement. The standard Initial Franchise Fee is $40,000. Payment is typically made in cash at the time of signing the agreement. Management Recruiters states that this fee is fully earned upon execution of the Franchise Agreement and is non-refundable.
However, Management Recruiters may, at its sole discretion, allow certain qualified franchisees to pay the Initial Franchise Fee through a temporary deduction. This deduction would be equal to 2% of all Franchise Receivables. This arrangement continues until the entire Initial Franchise Fee is recovered.
For prospective Management Recruiters franchisees, it's important to note that the full $40,000 Initial Franchise Fee is due upon signing, unless you qualify for and Management Recruiters approves an alternative payment plan. This alternative involves a 2% deduction from your share of Franchise Receivables. Franchisees should discuss payment options and eligibility requirements with Management Recruiters during the franchise application process.