Under what conditions does the agreement for services between Management Recruiters and the franchisee terminate?

According to Management Recruiters' 2024 Franchise Disclosure Document, the agreement for services between the franchisor and franchisee commences on the effective date of the Franchise Agreement and continues for the term of the Franchise Agreement. The service agreement terminates immediately upon the termination of the Franchise Agreement.

This means that the Back Office Services Agreement, which outlines the services Management Recruiters provides to the franchisee such as billing, invoicing, accounting assistance, and collections, is directly tied to the Franchise Agreement. If the Franchise Agreement is terminated for any reason, the Back Office Services Agreement also ends immediately.

For a prospective Management Recruiters franchisee, this highlights the importance of understanding the terms and conditions under which the Franchise Agreement can be terminated. Since the franchisee relies on Management Recruiters for essential back-office functions, any termination of the Franchise Agreement would also mean an immediate loss of these services, potentially disrupting business operations. Franchisees should carefully review the conditions for termination outlined in Section 20 of the Franchise Agreement to fully understand their rights and obligations.