What were the revenues of Management Recruiters and its affiliates from franchisees purchasing software, computer equipment, or other items in the last fiscal year?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
We have developed computer software to be used with the management and operation of our Franchise Business. We are the only approved supplier of this management and operations software for our franchised businesses. We will sublicense this software to you on the same terms and conditions as offered to all of our Franchisees similarly situated and you will be required to utilize the software in the operation of your Franchise Business in accordance with the specifications in the Brand Standards Materials. A form of the Computer Services Agreement is attached as Exhibit B to the Franchise Agreement. If you assign the Franchise Agreement, the Computer Services Agreement must be assigned to the new franchisee. In addition, you must pay for the actual cost of all software and published updates. At your expense, before you begin operations of the Franchise Business, you must purchase from us or a vendor approved by us the computer hardware and related equipment required for the operation and use of the software. During our last fiscal year ended December 31, 2023, we and our affiliates had zero revenues from franchisees purchasing from us software, computer equipment, or any other items for their businesses. All hardware and related equipment must meet the specifications provided in the Brand Standards Manual. Also, during the term of the Franchise Agreement, you must allow us access via telephone modem to your computer system to enable us to periodically upload and download data to facilitate our performance of automated payroll and related services.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters and its affiliates had zero revenues from franchisees purchasing software, computer equipment, or other items for their businesses during the last fiscal year, which ended December 31, 2023.
This means that franchisees were not required to purchase these items directly from Management Recruiters or its affiliates. However, franchisees are required to purchase computer hardware and related equipment from Management Recruiters or a vendor approved by them before beginning operations. The hardware and equipment must meet the specifications outlined in the Brand Standards Manual.
Franchisees are also required to use the computer software developed by Management Recruiters for managing and operating their franchise business. Management Recruiters is the only approved supplier of this software and will sublicense it to franchisees under the same terms and conditions offered to all similarly situated franchisees.
While Management Recruiters does not directly profit from the sale of software, computer equipment, or other items to franchisees, they do have the authority to designate "required suppliers" that franchisees must use. They also negotiate purchase arrangements with suppliers for the benefit of their members, including prices for various services and products. Franchisees should inquire about the specific software and hardware requirements and approved vendors during their due diligence.