What is the standard Initial Franchise Fee for a Management Recruiters franchise?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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ITEM 5: INITIAL FEES
You must pay to us an initial franchise fee (the "Initial Franchise Fee") when you sign the Franchise Agreement. The Initial Franchise Fee is $40,000. This Initial Franchise Fee will be paid by you in cash contemporaneously with the execution of your Franchise Agreement. In Franchisor's sole discretion, certain qualified franchisees may be allowed to pay the Initial Franchise Fee via a temporary deduction from the share we pay you pursuant to the franchise agreement equal to 2% of all Franchise Receivables (as that term is defined in the Franchise Agreement) until the entire Initial Franchise Fee is fully recovered.
We offer a Veteran's discount to both honorably discharged veterans of the United States armed forces and to the spouses of active-duty United States military members. In these instances, the Initial Franchise Fee is discounted to $32,000. A copy of your DD214 or evidence of current active-duty status will be required to receive this discount.
If your purchase is as a result of a Transfer (as defined in the Franchise Agreement), you must pay a Jump Start Fee of $5,000 to cover the costs of training and other administrative functions, but you will not pay an Initial Franchise Fee.
If this is a renewal of an existing MRI Franchise Agreement, you will not pay an Initial Franchise Fee.
All Initial Franchise Fees and Jump Start Fees are fully earned by us when you sign the franchise agreement. Fees paid are not refunda
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the standard initial franchise fee is $40,000. This fee is due in cash when the Franchise Agreement is signed. Management Recruiters states that this fee is fully earned upon the signing of the franchise agreement and is non-refundable under any circumstances.
However, Management Recruiters may, at its discretion, allow certain qualified franchisees to pay the initial franchise fee through a temporary deduction. This deduction would be equal to 2% of all Franchise Receivables, as defined in the Franchise Agreement. This deduction continues until the entire initial franchise fee is recovered.
Management Recruiters also offers a discount on the initial franchise fee for honorably discharged veterans of the United States armed forces and spouses of active-duty United States military members. For these individuals, the initial franchise fee is discounted to $32,000. To receive this discount, a copy of the DD214 or evidence of current active-duty status is required.
It is important to note that if the purchase is a result of a transfer, a Jump Start Fee of $5,000 is required to cover training and administrative costs, but the initial franchise fee is waived. Similarly, if the franchise agreement is a renewal of an existing Management Recruiters franchise agreement, the initial franchise fee is also waived.