Under what conditions will Management Recruiters pay the Franchisee's Recruiter Share?

According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters will pay the Franchisee's Recruiter Share as long as the Franchise Agreement remains in effect and the franchisee is not in default. The payment is made on the Wednesday following the weekly Accounting Period, which ends on a Sunday, during which Management Recruiters actually collects the cash. If that Wednesday is a banking holiday, then Management Recruiters will pay the Franchisee's Recruiter Share on the next business banking day.

The Franchisee's Recruiter Share is calculated weekly, and the Recruiter Continuing Fees are deducted from the franchisee's Net Cash In account. Net Cash In includes sums billed by Management Recruiters to customers of the Franchise Business on account of Recruiter Services which are actually collected, less sales and use taxes. It also includes all receipts from any business the franchisee engages in that violates the Franchise Agreement.

It is important for prospective franchisees to understand the conditions under which they will receive their share of the recruiter fees, as well as how Net Cash In is calculated, as this directly impacts their revenue. Franchisees should also be aware that any default on the Franchise Agreement could delay or prevent payment of the Franchisee's Recruiter Share.