Under what condition can a Management Recruiters franchisee terminate the Back Office Services Agreement?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisor cannot reperform the services in compliance with the warranty set forth above within a reasonable time (but no more than 30 days) after Franchisee's written notice of such breach, Franchisee may, at its option, terminate the Agreement by serving written notice of termination pursuant to this Section.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, a franchisee has the option to terminate the Back Office Services Agreement under specific circumstances related to the franchisor's performance of services.
Specifically, if Management Recruiters fails to perform the services in a timely, workmanlike, and professional manner according to industry standards, it is considered a breach of warranty. In such a case, the franchisee must provide written notice of the breach. Management Recruiters then has a reasonable time, not exceeding 30 days, to reperform the services in compliance with the warranty.
If Management Recruiters cannot successfully reperform the services within that 30-day period, the franchisee has the option to terminate the Back Office Services Agreement by providing written notice of termination. This provision outlines a specific scenario where the franchisee can end the agreement due to the franchisor's failure to meet the agreed-upon service standards.