Does Management Recruiters have an obligation to offer contracts with Global Account Customers to a Management Recruiters franchisee?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
negotiate and enter into contracts with Global Account Customers to provide services offered on a regional, national, or other specialty basis. Franchisor shall have no obligation to offer any contract with any Global Account Customer to Franchisee, and, if it does, Franchisee shall be under no obligation to accept the proposed contract terms, but shall in good faith consult with the Franchisor on any questions or concerns regarding the negotiated terms of service for Global Account Customer locations. If another of Franchisor's franchisees, a designated contractor, or if we ourselves provide Global Account Customer services to any Global Account Customer, whether or not that contract was offered to Franchisee, Franchisor, or its agent, may employ the same trademark and service marks as are granted to Franchisee under this Franchise Agreement, or any other trade names or service marks Franchisor designates. If Franchisee elects to provide the services, all standards of performance that may be required by the Global Account Customer or by the MRI System shall apply. If, for any reason, the Global Account Customer or the Franchisor concludes that performance standards related to the accepted national account are not being met by Franchisee, the Franchisor shall in good faith consult with Franchisee regarding its performance. With or without such consultation, however, the Franchisor may direct that either the Franchisor or a third party may provide the services.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters has no obligation to offer contracts with Global Account Customers to a franchisee. However, if Management Recruiters does offer such a contract, the franchisee is under no obligation to accept the proposed contract terms. In this case, the franchisee must consult with Management Recruiters in good faith regarding any questions or concerns about the negotiated terms of service for Global Account Customer locations.
Even if a franchisee is not offered a Global Account Customer contract, Management Recruiters, another franchisee, or a designated contractor may provide services to that customer using the same trademarks and service marks granted to the franchisee under the Franchise Agreement. If the franchisee elects to provide the services, all performance standards required by the Global Account Customer or the Management Recruiters system will apply.
If the Global Account Customer or Management Recruiters concludes that the franchisee is not meeting performance standards, Management Recruiters will consult with the franchisee in good faith. However, Management Recruiters retains the right to direct that either Management Recruiters itself or a third party provide the services, regardless of such consultation. This clause ensures that Management Recruiters can maintain service levels for key national or global clients, even if a franchisee is underperforming.
Global Account Customers are defined as customers designated by Management Recruiters who conduct business in multiple locations, jurisdictions, states, or countries, and whose accounts are negotiated and secured either by Management Recruiters or with Management Recruiters' assistance and approval. This definition highlights the importance of these clients to the overall Management Recruiters network and the franchisor's need to maintain control over these relationships.