What is the purpose of the Marketing and Public Relations Fund (MPRF) for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.8. Marketing and Public Relations Fund. Franchisor shall administer the Marketing and Public Relations Fund in accordance with the following terms and conditions:
- 7.8.1.Marketing and Public Relations Fund Established. Franchisor has established a Marketing and Public Relations Fund (the "MPRF") on behalf of the System to provide marketing, advertising, public relations services, materials, and training, as well as meetings and events to support the MRINetwork. Franchisor shall direct all advertising and marketing programs and have sole discretion and ownership interests in and to the creative concepts, materials, and media used in such programs and the placement and allocation thereof.
- 7.8.2.Uses of MPRF. The MPRF may be used to meet costs of maintaining, administering, directing, conducting, and preparing marketing, public relations, meeting support, and/or promotional programs and materials, supporting technology and any other activities which Franchisor believes, in its sole business judgment, will enhance and improve the image of the MRINetwork. In addition, The MPRF may be used to defray expenses, such as reasonable costs and overhead related to the direction and implementation of the MRPF and marketing and public relations programs.
- 7.8.3.Non-Proportionate Expenditures. Franchisor shall have no obligation to make expenditures that are equivalent or proportionate to Franchisee's MPRF contribution or to ensure that Franchisee benefits directly or pro-rata from the production or placement of advertising, marketing, or promotional materials from the MPRF.
- 7.8.4.Annual Statements. Franchisor shall prepare an unaudited annual statement of the MPRF's operations which shall be available to Franchisee upon reasonable written request.
- 7.8.5.Termination of MPRF. Franchisor may terminate the MPRF at any time and for any reason, or no reason at all. Franchisor will not terminate the MPRF, however, until all monies in the MPRF have been expended.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the Marketing and Public Relations Fund (MPRF) exists to support the MRINetwork system through various marketing and promotional activities. The fund is used to provide marketing, advertising, public relations services, materials, and training, as well as to support meetings and events. HQ MRI Corporation, as the Franchisor, has sole discretion in directing all advertising and marketing programs, including ownership of creative concepts and media used.
The MPRF's resources can be allocated to cover the costs of maintaining, administering, and conducting marketing, public relations, meeting support, and promotional programs. It also supports technology and other activities that the Franchisor believes will enhance the image of the MRINetwork. Additionally, the fund can be used to defray expenses related to the direction and implementation of the MPRF and marketing programs, including reasonable costs and overhead.
However, Management Recruiters franchisees should note that the Franchisor is not obligated to make expenditures from the MPRF that are equivalent or proportionate to a franchisee's contribution. There is no guarantee that a franchisee will directly or pro-rata benefit from the advertising, marketing, or promotional materials produced or placed using the MPRF. The Franchisor also retains the right to terminate the MPRF at any time, for any reason, provided that all monies in the fund have been expended before termination. Franchisees are entitled to an unaudited annual statement of the MPRF's operations upon written request.