What is the Minimum Annual Continuing Fee (MACF) for a Management Recruiters franchise, and when is it paid?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
"Minimum Annual Continuing Fee" or "MACF" means twelve thousand dollars ($12,000.00) per calendar year.
- 5.5.1.Establishment of Minimum Annual Continuing Fee. Franchisee shall pay the Minimum Annual Continuing Fee ("MACF") each calendar year to the extent the Gross Continuing Fees paid to Franchisor in the calendar year immediately preceding do not exceed the MACF.
- 5.5.2.Commencement. The MACF will begin on the first day of the first full calendar year after the Effective Date of this Agreement and continue for each succeeding calendar year thereafter through the Expiration Date as described in Schedule 1 to this Agreement. In the event this Agreement is entered into as a Successive Agreement, the MACF will become effective on the Effective Date. The payment of any monies due for failure to meet the MACF will be paid by Automated Clearing House ("ACH") electronic transfer to an account provided in writing by Franchisor on or before April 1 of each year.
- 5.5.3.MACF Upon Termination. In the event of termination of this Agreement for default, prior to the Expiration Date, Franchisee shall be responsible for payment of the MACF for the remaining term of this Agreement, unless otherwise waived by Franchisor in writing.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to the 2024 Management Recruiters Franchise Disclosure Document, the Minimum Annual Continuing Fee (MACF) is $12,000 per calendar year. This fee is applicable if the Gross Continuing Fees paid to Management Recruiters in the immediately preceding calendar year do not exceed this minimum threshold.
The MACF obligation starts on the first day of the first full calendar year following the franchise agreement's effective date and continues each year through the agreement's expiration. However, if the agreement is a Successive Agreement, the MACF takes effect immediately on the Effective Date.
The payment for any shortfall to meet the MACF is due by April 1 of each year. Payment is made via Automated Clearing House (ACH) electronic transfer to an account designated by Management Recruiters. If the franchise agreement is terminated due to default before the expiration date, the franchisee is responsible for paying the MACF for the remaining term, unless Management Recruiters waives this requirement in writing.