Does Management Recruiters require written approval for a franchisee to relocate their Franchise Business?

According to the 2024 Management Recruiters Franchise Disclosure Document, a franchisee must obtain written approval from Management Recruiters before relocating their franchise business. Specifically, the FDD states that a franchisee "may not relocate the Franchise Business without Franchisor's written approval of the new location."

This requirement ensures that Management Recruiters maintains control over its brand and network. Relocation decisions can impact other franchisees, especially those in "Legacy Territories," which are exclusive territories granted in the past. If a franchisee relocates without approval and encroaches on a Legacy Territory, they may be required to reimburse Management Recruiters for any supplemental royalty payments the franchisor has to make to the Legacy Territory owner.

If a Management Recruiters franchisee's relocation request is approved, they must sign a relocation amendment. This amendment outlines any specific terms or conditions related to the relocation and confirms the new location. The franchisee is responsible for all expenses associated with the relocation. Prior to relocating, the franchisee must also remove any signage or property identifying the original location as part of the Management Recruiters system.