What is the monthly Back Office Services Fee for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
n (See Note 2, above).
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- You will pay a Back Office Services Fee of $950 per month in exchange for us providing you with 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.
This monthly fee will be deducted from Franchisee's Recruiter Share and Franchisee's Contract Staffing Share until the entir
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, franchisees must pay a Back Office Services Fee of $950 per month. In exchange for this fee, Management Recruiters provides services such as updates to and maintenance of their billing and payroll system, invoicing for recruiter and contract staffing services, and accounts receivable and cash receipts application services.
Additionally, the Back Office Services Fee covers basic accounting assistance, including the preparation of monthly profit and loss statements and balance sheets for the franchise business. Management Recruiters also offers collections assistance, including calls and demand letters, though the franchisee retains ultimate responsibility for collections. Furthermore, the fee includes accounts payable assistance, where Management Recruiters pays regular monthly, quarterly, and annual vendor invoices on behalf of the franchisee, with the franchisee advancing the funds to Management Recruiters.
This monthly fee is deducted directly from the franchisee's Recruiter Share and Contract Staffing Share until the full amount is covered. This deduction mechanism ensures that the fee is paid consistently and directly from the revenue generated by the franchise. The comprehensive nature of the services covered by the Back Office Services Fee is intended to streamline administrative tasks and provide franchisees with essential support for managing their business operations.