When does Management Recruiters pay the Franchisee's Contract Staffing Share?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Pay you your share of moneys collected from customers, described in the Franchise Agreement as "Franchisee's Contract Staffing Share," calculated as Gross Margin less Continuing Fees, other adjustments, and other amounts owing to us, on the Wednesday following the twenty-ninth (29th) day after the end of each weekly Accounting Period. If that Wednesday is a banking holiday, then we will pay to you your Franchisee's Contract Staffing Share on the next business-banking day. You will find these terms defined in the definitions section (Section 1) of the Franchise Agreement, and discussed in Section 5.3 and Section 6.2;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–40)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters pays the Franchisee's Contract Staffing Share on a specific schedule. This share is calculated as Gross Margin less Continuing Fees, other adjustments, and any other amounts the franchisee owes to Management Recruiters.
The payment is made on the Wednesday following the twenty-ninth day after the end of each weekly Accounting Period. This means there's a delay to allow for processing and reconciliation of accounts. If that Wednesday falls on a banking holiday, the payment is shifted to the next business-banking day.
This payment schedule is important for franchisees to understand for cash flow management. Franchisees should be aware of the weekly accounting periods and the subsequent delay before receiving their share of the contract staffing revenue. Understanding these terms, which are defined in Section 1 of the Franchise Agreement and discussed in Sections 5.3 and 6.2, is crucial for financial planning.