Can Management Recruiters require a franchisee to enter into software license agreements for software developed or acquired for use in the System?

According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters has the right to require franchisees to enter into software license agreements. Specifically, Management Recruiters may require franchisees, at the franchisee's sole expense, to enter into software license agreements. These agreements would be in the form and substance that Management Recruiters requires. This applies to software Management Recruiters develops or acquires for use in the System.

This software can include, but is not limited to, programs for invoicing, billing, time management, timeclock functions, and applicant tracking. This means a franchisee may be obligated to adopt and pay for new software solutions mandated by Management Recruiters as they are introduced or updated.

For a prospective franchisee, this indicates a potential ongoing cost for technology upgrades and software licenses throughout the term of the franchise agreement. It is important to budget for these potential expenses and understand the terms of the Computer Services Agreement, referenced as Exhibit B, to fully grasp the financial implications of required software adoption. Franchisees should inquire about the typical frequency and cost of these software updates and licenses to better prepare their financial forecasts.