Is there a separate agreement for back-office services required by Management Recruiters franchisees?

According to Management Recruiters' 2024 Franchise Disclosure Document, a separate Back Office Services Agreement is entered into between HQ MRI Corporation and the franchisee contemporaneously with the Franchise Agreement. This agreement outlines the terms and conditions under which Management Recruiters will provide specific services to the franchisee.

The services provided by Management Recruiters under the Back Office Services Agreement include updates to and maintenance of the franchisor's billing and payroll system, invoicing customers for recruiter and contract staffing services, and accounts receivable and cash receipts application services. Additionally, they offer basic accounting assistance, including the preparation of monthly profit and loss statements and balance sheets, collections assistance, and accounts payable assistance. The franchisee is responsible for advancing funds to the franchisor for vendor invoices.

For these services, the franchisee pays a fixed Back Office Services Fee, which is subtracted directly from the franchisee's share and reflected on the Franchisee's Settlement Statement. The agreement commences on the effective date of the Franchise Agreement and continues during its term, terminating immediately upon the termination of the Franchise Agreement. Management Recruiters acts as an independent contractor in providing these services, maintaining control over the method and manner of performance.