Statement of Policy

MAD Academy Franchisees are required to pay weekly Management Service Fees to MAD Academy Head Office as part of their Franchise contract, however, MAD Academy recognises that there may be times when the normal fees should be adjusted. This will only do done for a very specific set of circumstances.

Roles and Responsibilities

Franchisees are responsible for paying management service fees to Head Office on a half termly basis.  MAD Academy Head Office post invoices to franchisees at the end of each half term showing the MSF due, taking account of any adjustments due as a result of this procedure.

Procedures

Franchisees are contracted to pay a Management Service Fee based on the number of classes they run each week, but for 36 weeks of each year there is a minimum number of classes (MCN) for which MSF is due.  There are exceptions to this rule as follows.

  • When weeks are shorter than normal due to bank holidays and as a result classes are not run on that bank holiday, the minimum number of classes required for that week is reduced by the number of classes that would normally have been run on that day of the week.
  • In the event of a class being cancelled due to adverse weather, the MSF for that class will be waived. This does not, however, apply where the full number of contracted classes are not yet running. Franchisees are required to notify Head Office within 3 days when classes have had to be cancelled for bad weather.
  • The contracted minimum class number is not applied to the MSF for up to the first three terms of a business launched in a previously unused territory.
  • If a Franchise gives birth to a baby whilst still under contract to pay their MSF, they may apply to the MAD Academy directors for a 12 week ‘holiday’ period from their requirement to meet their MCN, i.e. they can ask to have their 36 weeks target for the year reduced to 24.

During the school holidays (i.e. additional weeks beyond the contracted 36 weeks), should Franchisees run classes, the MSF will be due only for the number of classes run i.e. the minimum contracted class number will not apply.