What is the minimum annual royalty fee for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
forcement authorities.
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- The minimum annual royalty of $12,000 begins on the first day of the first full calendar year after the day you sign your Franchise Agreement unless you enter the franchise agreement as a renewal of an existing MRINetwork franchise agreement. In that case, the minimum annual royalty obligation will begin immediately after signing the renewal franchise agreement. If the minimum annual royalty is not met through your payment of Continuing Fees in any given calendar year, you will be required to pay the difference in royalty between what you paid and the minimum annual royalty. If your franchise agreement is terminated for any reason prior to the expiration of the term, you will be responsible for payment of the minimum annual royalty for the remainder of the term, unl
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the minimum annual royalty fee is $12,000. This minimum royalty obligation begins on the first day of the first full calendar year after signing the Franchise Agreement. However, if the agreement is a renewal of an existing Management Recruiters franchise agreement, the minimum annual royalty obligation begins immediately after signing the renewal agreement.
If a franchisee's Continuing Fees paid during a calendar year do not meet the $12,000 minimum, the franchisee must pay the difference. This ensures that Management Recruiters receives at least the minimum royalty amount annually, regardless of the franchisee's gross revenue.
Furthermore, if the franchise agreement is terminated for any reason before its expiration, the franchisee is responsible for paying the minimum annual royalty for the remainder of the term, unless Management Recruiters waives this requirement in writing. This clause highlights a potential financial risk for franchisees, as they may be liable for the minimum royalty even if they are no longer operating the franchise.