Under what condition will Management Recruiters deny a franchisee's relocation request?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor will not deny relocation unless, in its sole judgment, such relocation would be a violation of another Franchisee's territorial rights.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters will deny a franchisee's request to relocate their franchise if, in its judgment, the relocation would violate another franchisee's territorial rights. This means that Management Recruiters considers the potential impact on existing franchisees when evaluating relocation requests.
Management Recruiters franchisees should be aware that some territories within the MRINetwork may be designated as "Legacy Territories," which were granted exclusive rights in the past. If a franchisee seeks to relocate into a Legacy Territory, they may be required to pay a supplemental royalty to the owner of that territory, in addition to the standard continuing fees. The decision to allow a relocation into a Legacy Territory is solely at the discretion of the Legacy Territory owner.
If Management Recruiters approves a relocation request, the franchisee must sign a relocation amendment that outlines the terms and conditions of the relocation and confirms the new location. The franchisee is responsible for all expenses associated with the relocation. Additionally, before relocating, the franchisee must remove any signage or property from the original location that identifies it as part of the Management Recruiters system. Failure to obtain Management Recruiters' approval before relocating could result in the franchisee being required to reimburse Management Recruiters for any supplemental royalties they are required to pay to the Legacy Territory owner for the remaining term of the Franchise Agreement.