Under what condition may Management Recruiters impose a handling fee related to unemployment claims?

According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters may impose a handling fee on a franchisee if the franchisee fails to cooperate with Management Recruiters or its affiliates in handling unemployment insurance claims for temporary and contract employees. This determination is made at Management Recruiters' sole discretion.

The handling fee can be up to 150% of the unemployment claims exceeding state unemployment premiums paid. This calculation is done quarterly and is based on the unemployment claim experience of temporary or contract employees provided by the franchise business during the term of the agreement.

For a prospective franchisee, this means that failing to properly manage and cooperate with Management Recruiters on unemployment claims can result in significant additional costs. It is crucial to understand and adhere to Management Recruiters' policies and procedures regarding temporary and contract employee management to avoid these fees. Franchisees should ensure they have systems in place to accurately track and manage employee information relevant to unemployment claims and maintain open communication with Management Recruiters regarding any such claims.