What is the payment schedule for the Franchisee's Contract Staffing Share from Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
The Contract Staffing Continuing Fees are deducted from your Gross Margin account as part of the weekly calculation of Franchisee's Contract Staffing Share.
Gross Margin means sums billed by Franchisor to customers of the Franchise Business on account of temporary and contract employee placement services after deducting therefrom all Temporary and Contract Employee Expenses attributable to the temporary and contract employees.
As long as your Franchise Agreement remains in effect and you are not in default, we will pay you your Franchisee's Contract Staffing Share on the Wednesday following the twenty-ninth (29th) day after the end of each weekly Accounting Period (which ends on Sunday).
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.
See Section 5 and Section 6 of the Franchise Agreement for a detailed discussion of the calculation of your Franchisee's Contract Staffing Share.
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the Franchisee's Contract Staffing Share is paid out weekly. Specifically, Management Recruiters will pay the franchisee their Contract Staffing Share on the Wednesday following the twenty-ninth (29th) day after the end of each weekly Accounting Period, provided the Franchise Agreement remains in effect and the franchisee is not in default. The weekly Accounting Period ends on Sunday. If that Wednesday is a banking holiday, the payment will be made on the next business banking day. The Contract Staffing Continuing Fees are deducted from your Gross Margin account as part of the weekly calculation of Franchisee's Contract Staffing Share. Gross Margin means sums billed by Franchisor to customers of the Franchise Business on account of temporary and contract employee placement services after deducting therefrom all Temporary and Contract Employee Expenses attributable to the temporary and contract employees.
This means that franchisees can expect to receive their share of contract staffing revenue approximately four weeks after the end of the week in which the revenue was earned. This delay accounts for processing and collection times. The FDD also indicates that the calculation of the Franchisee's Contract Staffing Share is discussed in detail in Section 5 and Section 6 of the Franchise Agreement, which a prospective franchisee should carefully review.
It's important to note that the payment is contingent upon the franchisee remaining in compliance with the Franchise Agreement and not being in default. Any banking holidays will also affect the payment schedule, potentially delaying receipt of funds. Additionally, the Marketing and Public Relations Fee of 0.5% of Gross Funds and Back Office Services Fee of $950 per month are deducted from Franchisee's Contract Staffing Share.