What services does Management Recruiters provide to Franchisee in exchange for the Back Office Services Fee?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.6. Back Office Services. In exchange for the Back Office Services Fee, Franchisor shall provide Franchisee the following services:
- updates to and maintenance of Franchisor's billing and payroll system;
- invoicing customers for Recruiter Services and Contract Staffing Services;
- accounts receivable and cash receipts application services;
- basic accounting assistance including preparation of monthly profit and loss statements and balance sheets for the Franchise Business;
- collections assistance including calls and demand letters, provided, however, that Franchisee shall bear ultimate responsibility for collections;
- accounts payable assistance including payment of regular monthly, quarterly, and annual vendor invoices (which amounts Franchisee will advance to Franchisor) on behalf of Franchisee; and
- optional liaison services between Franchisee and any professional employment organization or similar organization Franchisee selects to assist with benefits and payroll administration of internal staff.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, in exchange for the Back Office Services Fee, Management Recruiters provides several services to its franchisees. These services include updates to and maintenance of Management Recruiters' billing and payroll system, invoicing customers for Recruiter Services and Contract Staffing Services, and accounts receivable and cash receipts application services. Franchisees also receive basic accounting assistance, including the preparation of monthly profit and loss statements and balance sheets for the Franchise Business.
Management Recruiters also offers collections assistance, including calls and demand letters, though the franchisee retains ultimate responsibility for collections. Additionally, Management Recruiters provides accounts payable assistance, which includes the payment of regular monthly, quarterly, and annual vendor invoices on behalf of the franchisee, with the franchisee advancing the necessary amounts to Management Recruiters.
Finally, Management Recruiters offers optional liaison services between the franchisee and any professional employment organization the franchisee chooses to assist with benefits and payroll administration of internal staff. The Back Office Services Fee is defined as $950.00 per month.