Operations Manual 2020

SCHEDULE D
SEARCHPATH GLOBAL, INC.

FRANCHISE DISCLOSURE DOCUMENT
Table of Contents
1. BUSINESS STRUCTURE OPTIONS
Sole Proprietorship ....................................................................................... 1

Partnership ................................................................................................... 1
Corporation ................................................................................................... 2
Structure Comparison Metrix ........................................................................ 3
2. BUSINESS PLANNING
Business Planning ......................................................................................... 6

Practice Models ............................................................................................. 7
Business Models ............................................................................................ 8
3. SETTING UP THE OFFICE
Choosing a Location .................................................................................... 10

Negotiating the Lease ................................................................................. 13
Communication Needs ................................................................................. 19
Computer Needs .......................................................................................... 21
BYOD (Bring Your Own Device) ................................................................... 24
4. EMPLOYEES
Importance of Your Hires ............................................................................ 25

Developing a Hiring Strategy ...................................................................... 26
Identifying Potential Employees ................................................................. 30
Sourcing Potential Employees ..................................................................... 32
Interviewing Potential Employees ............................................................... 32
Compensating Talent................................................................................... 35
The Onboarding Process .............................................................................. 41
Training Employees ..................................................................................... 42
Effective Leadership .................................................................................... 43
Creating an Exceptional Culture .................................................................. 48
SearchPath Operations Manual (Canada) Table of Contents
5. ACCOUNTING
Introduction ................................................................................................ 50
Obtaining an Accountant ............................................................................. 50
Business Numbers (BN) .............................................................................. 51
Province and Local Identification Numbers ................................................. 52
Tax .............................................................................................................. 52
Invoicing and Collections ............................................................................ 53
Accrual vs. Cash Accounting Systems .......................................................... 54
Record Keeping ........................................................................................... 55
Internal Controls ......................................................................................... 59
SearchPath Required Reporting .................................................................. 58
Payroll and Human Resources ..................................................................... 72
SearchPath Non-compliance Process........................................................... 75
6. INSURANCE
Business Insurance ..................................................................................... 78

Employee Benefits and Insurance ............................................................... 78
7. MARKETING
Networking ................................................................................................. 79
Internet / Social Media ............................................................................... 79
Trade Publications / Professional & Social Associations ............................. 80
Other Marketing Vehicles ............................................................................ 80
8. POLICY RECOMMENDATIONS
Communicating Policies .............................................................................. 82

Employee Policies........................................................................................ 83
Common Benefits ........................................................................................ 84
Office Policies.............................................................................................. 85
Business Ethics ........................................................................................... 89
Split Referral Guidelines .............................................................................. 90
© 2020 SearchPath®
SearchPath Operations Manual Business Structure
Business Structure Options

In starting a small business, one of the first questions you should ask is what
name will I give my new company? Conduct due diligence via the web to ensure
that the name you want to give your company is not already taken by another
company within the same industry.
A second question will be what form of legal entity you should use or "How
should I organize my business?" Also, as your business grows and changes
you should, from time to time, ask yourself whether the entity you have chosen
remains the best form of organization for your business. The entities most
commonly used by small businesses in the Canada are (1) the sole
proprietorship, (2) partnerships and (3) corporations. To help you determine
the best structure for your business, following is an overview of several
options. It’s always best to work closely with an attorney and/or accountant to
ensure you make the right choice.
Sole Proprietorship
Sole proprietorships are a popular choice for many new business owners
because so little is needed to set them up. Apart from local business licenses,
there are minimal government fees and paperwork.
On the other hand, there are also considerable risks to consider—for example,
your personal assets are vulnerable to creditors and other liabilities such as
lawsuits. You also don’t get to take advantage of certain tax breaks that are
reserved for more formal business structures such as Corporations or
Partnership.
Most importantly, as a sole proprietorship, your company name is not

protected. In other words, there is nothing to prevent another company from
incorporating under your business name.
Partnership
Similar to sole proprietorships, partnerships are extremely easy to set up and
maintain, requiring no government fees or annual state paperwork. On the
downside, you and your partners are each held fully responsible for all of your
company’s debts. This means if you or a partner defaults on a company loan,
creditors can go after your personal bank accounts, property holdings and
other assets to satisfy the entire loan.
© 2020 SearchPath® Page 1

As a partnership, you are also at a disadvantage when it comes to raising

funds. For example, you cannot raise capital by selling stock, and private
investors may be wary of investing in your company without personal liability
protection. Finally, just as with sole proprietorships, your company name is
not protected. This means any new or existing business could incorporate using
your company name.
Corporation
Corporations are the standard for many businesses in today’s market. The
primary reason is that incorporating shields you and the members of your
company from personal liability. In other words, if your business hits hard
times, creditors cannot go after your personal assets to make up for any
company shortfalls.
But protection from personal liability is not the only benefit that comes with
incorporating. The corporate business structure also offers significant tax
savings, greater business flexibility, company name protection and increased
opportunities for raising capital. You can also choose to set up your corporation
as either a private or a public one in order to take advantage of different tax
options.
One thing to keep in mind—Corporations do require some initial set up fees

and a certain amount of regular maintenance. For example, you’ll have to keep
up-to-date corporate records as well as file an annual report with the state.
Structure Comparison Matrix
Ownership By a single By two or more persons By unlimited number

individual of shareholders
Management The owner controls By general partners Corporation's board of

all the decision directors
making
Life Will terminate with Generally, for a specific Unlimited, unless by

death or disability of agreed-upon term. The state law or charter
owner partnership may be
terminated by death,
withdrawal, insolvency, or
legal disability of a general
partner
Liability Unlimited liability - Unlimited for general Shareholders' liability
The owner is partners. General partners limited to their
responsible for all of are jointly and severally investment in
the company’s debts liable for obligations of corporation stock
partnership. Limited
partner's liability limited to
amount invested

Taxation Owner taxed on Partners taxed on share of Corporation taxed on

business profits partnership income taxable income,
whether distributed whether distributed or not. whether distributed or
or not and will have Partners must pay self- not to shareholders
to pay a self- employment taxes on all Income is taxed twice
employment tax on earnings but do not have to 1) at the corporate
all of the company’s pay unemployment level; & 2) at the
earnings insurance taxes on their employee level when a
salaries wage is paid or the
shareholder level
when distributed as a
dividend
Advantages Tax advantage by Easy to form Legal entity separates

avoiding corporate Increased sources of capital from individuals
income tax Tax advantage by avoiding Limited personal
Centralized decision- corporate income tax liability
making Continuity of existence
Low start-up costs Continuity of
Owner retainers all management
of the profits Readily transferable
interests
Easy to raise capital
Disadvantages Unlimited personal Unlimited personal liability Difficult and expensive

liability Division of control/ to form
authority Subject to close
Difficult to raise Difficult to find compatible government regulation
capital partners Scope limited by
Difficult to raise additional corporate charter
Owner's salary capital Inflexibility of
cannot be treated as Owners' salary/wage operations
expense, hence, not cannot be treated as Double taxation by
tax deductible expense, hence, not tax paying both corporate
Difficult to transfer deductible and personal income
ownership taxes
Cannot deducted
operating losses
against your income

SearchPath Operations Manual Business Planning
Business Planning
Planning is a critical step to operating a successful search firm. As a search
firm owner, there are several factors to consider. By addressing these options
early in your opening, you can focus your energies on setting and
accomplishing your business plan.
1. What type of office environment do you want? The desired

environment affects the type of people you will want to hire and the
guidelines to incorporate. For example, do you want a casual, friendly
atmosphere or a professional atmosphere where employees are
required to dress in suits?
2. How large do you want to be in terms of revenue and number of

employees? There are several factors that must be considered:
number of employees, per desk average, and revenue goal. The higher
the per desk average (PDA), the fewer people you need to employ to
reach your revenue goal. For example, an owner can have a million-
dollar search firm with four consultants if the PDA average is $250,000.
Whereas, an office with a per desk average of $125,000 would need 8
consultants to generate the same revenue. It is important to note that
the more employees you have, the more time it requires to interview,
hire and orientate, and develop your team. Carefully consider the
number of employees you want to have as it affects your ability to
personally produce revenue.
3. How diverse do you want your office to be in terms of practice

specialties? Search firms can service multiple industries, or focus on
a particular industry. If a firm targets a particular industry, the
consultants typically focus on various job functions within that industry
and share leads to increase overall revenue. In a structure, such as
this, referrals and split fees are more common. The disadvantage of
concentrating on one industry is that you are more vulnerable to
fluctuations in that market, which can be detrimental to your office if
the market takes a major downturn.
4. What financial resources are currently available? Your current

financial resources will dictate your growth plans. Expense factors
include:
 Employee Salaries
 Employee Commissions
 Payroll Processing Charges
 Payroll Taxes
 Benefits

 Contests
 Advertising
 Dues and Subscriptions
 Equipment Lease
 Equipment Depreciation
 Insurance
 Office Supplies
 Vendor Services
 Rent and Utilities
 Taxes
 Technology
 Travel and Entertainment
 Training
 Royalties
 Miscellaneous
For you to grow your business in terms of adding people, you must
have the financial resources available to cover the employee costs
(employee salaries, employee commissions, payroll processing
charges, payroll taxes, and benefits).
While some operating expenses are fixed, but can increase over time
(e.g. rent), it is important to remember that each person added to your
staff can also increase your operating costs. For example, with each
person added your technology costs and office supplies can increase as
each person will need a computer, telephone capabilities, long-distance
charges, access to your database, etc.
The best plan to ensure you can cover operating expenses is to always
keep the cash you will need to cover operating expenses for three
months. This money should be deposited in a savings account and used
only for those purposes. This will ensure that you will be able to
continue in business during the difficult cycles.
5. Do you want your growth strategy to be based on time or

revenue? Many franchisees are faced with the decision of when and
how to grow their business. Our experience has shown that there are
two models that we typically see:
1) A growth strategy based on timelines as indicated in a business
plan. For example, a franchisee may choose to add staff based
on time increments of 1, 3, 6 or 12 months.
2) A growth strategy based on revenue. A franchisee may choose
to add staff based on achieving defined revenue goals. For
example, a franchisee may choose to add staff after 3
placements or $100,000 cash-in.
6. Where do you want to be in 3 – 5 years? Each decision you make

should consider your long-term goals. When faced with situations,

compare your options to the goals outlined in your business plan. For
example, if you are considering office space and growing your business
quickly, it is recommended that you sign a lease that will accommodate
both your short-term and long-term projections. For example, if you
plan to grow your office to 10+ people within three years, do not sign
a five-year lease that will not accommodate your planned accelerated
growth.
Access the planning tools that are available to download from the
SearchPath® Intranet. The tools will help you lay out a workable
road map for your success.
Practice Models
Many times, often due to financial constraints or personal
responsibilities, people choose to get into business using a practice
model versus a business model. In a practice model, while it can be
highly profitable, it is limited in the short term by your ability, desire
and discipline to produce. It is also at times very lonely which can lead
to distractions. Most importantly there is no exit strategy for the
Practice Model as you have nothing to sell or give your successor.
Solo Producer
You may choose to start up your business as a solo producer to get
your cash flow going and to truly be in business for yourself. This model
can be extremely profitable as your costs can be very tightly controlled.
Some very disciplined people can work this model from their home. If
you can minimize distraction or control your environment by having a
home-office, then this may be the way for you to get started. If you
can’t then you should consider finding shared office space (like Regus)
or a professional services incubator. The advantages of the shared
space arrangement are that you can get access to services that you
would be unable to get at home like high speed business grade internet,
higher quality printing and copying, and the opportunity to network
with other entrepreneurs.
Partnerships
A small (2 or 3 person) partnership can have the same advantages as
the solo model while spreading the expenses between the partners.
This model works very well for people whose strengths and
personalities complement each other. Some successful examples of a

partnership are when one partner is a very capable business

development person and the other is strong as a person who can
develop candidate relationships. Another is where one partners is
really the producing partner and the other takes care of all of the
administrative and research tasks. Sometimes a couple will come into
this to work it together building a family business that can be passed
down to their kids.
Business Models
There are a number of different models that you can either choose from
or develop through in building your business. Depending on your
personality, funding and goals find which works best for you.
Rain Maker
The Rain Maker model can be the smoothest way to transition from a
practice model to a business model. As your practice grows you may
find that you are generating more business than you can fulfill. On this
model, you hire people to do the tasks that you just don’t have the time
for. You may start with a researcher or a person to do candidate
identification and initial screening interview. As your business continues
to grow your team members may grow into being a person who can do
business development lead generation (bird-dogging). The nature of
the most successful people in these roles are usually very methodical
and may not be sales personalities, which may be exactly what you and
your clients need. The major downside of the Rain Maker model is that
once again the business is built around the Rain maker and therefore
limits the salability of the business. However, a good fulfillment team
is a very valuable asset in itself and can adjust to support another Rain
Maker or to provide services to other offices.
Billing Manager
Similar to the rain maker model the Billing Manager starts with you
building a need to expand. Some people have the financial wherewithal
to start their business from this initial model. Many franchisors try to
force their new owners into this model because it can create a stable
business that is less dependent on the new owner being successful.
This model does require more of an investment up front as the best
way to build this is to have a physical office with 3 – 5 employees.
Office space, furniture, computers and monitors, high speed internet
all contribute to that investment. Creating an environment that helps
the team drive revenue and one that they want to come to every

morning is a challenge that many people who have been successful

team builders in the past enjoy tackling. You may have come from that
kind of environment or wish that you had. This is the basic model that
begins to create an exit plan. While it is still somewhat dependent on
the billing manager billing, the strength that the other producers bring
not only makes it more attractive to a buyer, but also creates potential
buyers from the team. Realistically this model tops out at about 8
people where the manager is a significant portion of the office
production. Above 8 and the management tasks and leadership needs
require more attention than the producer can normally give.
Non-Billing Manager
While some people start with this model most grow into it from a Billing
Manager model. To open with this model, you need to have significant
capital to invest in the startup, have a track record in successfully hiring
and leading a high-performance team. You also need to have a clear
vision of the industry niche that the initial team will concentrate on
developing. The advantage of this model is that you can focus on the
development of your people and not the day to day tasks of the
recruiter. The disadvantage is that the success or failure of your
business is in the hands of your employee’s capabilities to generate
sustainable revenue. The biggest challenge for the transition from
Billing to Non-Billing manager is the profitability hit. Bottom line the
revenue you produce is the most profitable so when you are ready to
stop producing or even to wind down your desk you need to have a
team that will rise to the occasion. Once the team is fully engaged you
now have a model that can attract investors or potential buyers.
Although the risk of turnover still exists the new owner has a better
chance of success than when your production is a majority of the
business revenue.
The non-billing manager can create industry focused teams to further

diversify the revenue stream. In this situation, you become a business
coach helping team leader to build a high-performance team. If effect,
you can build Rain Maker driven teams that stabilize this model. Key
thing to keep in mind that you still must be highly engaged with the
team members providing value and helping them stay focused.
Multi-Unit / Multi-Service
In this model the Non-Billing Manager is focused on further
diversification by building multiple high-performance teams each of
which could stand on its own P&L. In some cases, the team can be in
a satellite location to take advantage the nature of the marketplace
adjusting for commuting, cost of rent and services, pools of potential
hires. The other aspect of this model is that SearchPath is not a one-

trick pony. There are a few service offerings that you can build a team
around. Things like MyHuntPath, Contract/Project placements,
Recruitment Process Outsourcing (RPO) in addition to the classic search
and placement business are just a few of services that you can build as
revenue segments. SearchPath also has strategic alliances with other
organizations that offer you the ability to build revenue streams from
assessment testing, employment branding, unique programs for
employee retention all can help you build your business into a true full-
service global platform.
Which of these models is the most appealing to you today? Which one
is the one you want to be in 5 years, 10 years?
Contact a SearchPath operations consultant to develop and

implement a business plan targeted to achieve your specific goals.

SearchPath Operations Manual Setting up the office
Setting Up the Office

Choosing a Location
The first step in choosing a location is determining what you need. There are
several factors to consider:
 Cost: Affordability is the most important consideration. You will need to

look at multiple locations in your area to establish comparable values
for rent and location potential. It is important to note that rates vary
depending on location. For example, coastline locations (e.g. New
England, Florida and California) and metropolitan hotbed areas (e.g.
Chicago, Atlanta, Dallas, Denver and Phoenix) are typically more
expensive. Brokers and agents are great sources of information on
rental costs in various neighborhoods. Additionally, there are web-based
resources that allow you to do a virtual market search. They'll generally
give you an average figure for the cost of space per square foot per year
in a given area.
 Appeal: Appeal is to clients and candidates are not a primary factor as

most search firms do not work a local market in which they will be
meeting with individuals in the office. However, you will want to acquire
an office space that will attract high quality employees. Factors to
consider are the professional image of the building; the location of the
space within a building and on a floor; the view; and the building, floor
and office size. Other things to keep in mind are access to public
transportation, parking, lunch options and places to have a social time
with your team.
 Space: You need a space that will be functional for your needs. It is
recommended that you seek a minimum of 1,200 square feet of space
if you plan to have between four and six individuals in the office. The
required size of the space increases based on the number of individuals
you anticipate employing (200 square feet per person). Offices can be
spacious or efficient and you’ll need to decide if you want an open space,
partitioned open space, or offices for your consultants. Most search
firms have a “bullpen” open space that promotes activity and
competition. However, a conference room for meetings and training, a
secure managers’ office for operational duties, an administration /
reception area, and equipment area are also required. Some basic space
sizes:
o Partitioned Open Space: 80 to 110 sq. ft. per person.

o Open Space: 60 to 110 sq. ft. per person.

o Conference Room: 25 to 30 sq. ft. per person. (Must be able to

accommodate a 6 – 8-foot conference table and 4 – 8 conference
chairs).
o Managers’ Office: 150 to 200 sq. ft.
o Reception Area: 125 to 200 sq. ft.
o Common Area: Based on your size and other factors this can be
a well-ventilated closet to a full blown break room where you
would have your network equipment, printer/copier, coffee
service, water etc.
It is important to note that most spaces will not be configured to these

specifications. You will want to work with the landlord and negotiate
required modifications to accommodate your needs as part of your lease
agreement. If a building lacks something major that is essential to your
business, you should look somewhere else.
 Internet Capabilities: Another consideration that's important for your

businesses is having the availability of broadband internet access. Find
out what internet access providers are already in the building and what
kind of service offerings they have available. You are going to want to
use video and web conferencing which along with VoIP and general
internet access, these all add to your bandwidth requirements. Many
cable companies offer asynchronous service where you upload speed is
often 1/10th of your download speed. This can be a very cost -effective
choice when you are starting out with just yourself and possibly one
other person. If fiber is available in your building, get competitive
quotes from the cable company as well as the fiber provider. Find a
provider that will give you an Ethernet or fiber connection an easily
upgradeable offering your service as your needs grow. It will cut down
on the network hardware you will need to purchase.
 In-office Cabling: If cables to where you will have desks are not
already in the walls look to have at least 1 Cat 5e or Cat 6 cable run to
each of the places where you are going to have them, don’t forget the
conference room or the place you are going to have your copier/printer.
2 cables per location are even better and the cost to pull 2 is not that
much higher than 1. If Cat 5 is already in the walls you should be fine
to start. Drop ceilings are ideal for cabling and wiring. While older
buildings have a great feel, it is tough to operate a business without
network connectivity, stable internet access and electricity. If you are
not going with a VoIP solution, you also need to make sure a voice
quality line is at each of those locations.
 Electrical Power: Besides tech and communications wiring, don't

overlook electrical power as an important consideration in choosing a
space. Make sure that any space you're looking at has enough power
for your needs, both in terms of the number of outlets in your space and
the capacity of the circuits. For example, you need at least two

dedicated electrical outlets in the equipment area. One for your copier
and the other for your network equipment. It is important that these
are dedicated outlets that do not share power supplies with other areas
of the office to ensure optimal performance. Also, ask the landlord how
many hours of air conditioning are included in the terms of your lease,
and negotiate longer hours if necessary. Also make sure that the circuits
can handle the load that you are putting on them. For example, a
normal 10 AMP breaker may be able to handle 4 computers, monitors,
phone and a printer BUT can’t handle 4 personal heaters added on to
the load.
 Convenience: You want a location that is convenient to you and those

who will be working for you. A location that is easily accessible from
highways and public transportation enables you to expand your base for
potential employees. Other things to keep in mind are access to parking,
lunch options and places to have a social time with your team.
 Security: The office space should be in a secure building and

neighborhood.
 Parking: Consider parking availability, safety and cost. You will need to
identify how many spaces are included with your base rent.
 Area / Building / Space Amenities: Desired amenities include

convenient access to restaurants and shopping; an on-site area to eat
lunch or get coffee or other beverages; plus, clean and accessible
restrooms. If you are looking at a space with in-suite restrooms,
remember that you are paying extra for the restroom’s square footage.
A building that offers on-site meeting rooms can be an extra bonus if
you may occasionally conduct meetings that your in-suite conference
room will not accommodate.
 Average earnings in locality: This can impact your ability to attract

individuals to work for your organization. For example, a downtown
location may require the need to offer a higher compensation. This is
especially true for administrative personnel.
 Location of Other Search Firms: Unless you work a local market, the
number of competitors does not matter in terms of your ability to
develop clients and candidates. However, it can create competition and
impact your ability to attract individuals to work for you.
 Expansion Capabilities: Unless you intend to remain a small

organization (4 – 6 employees), being able to obtain additional
connected space may be critical for your business in the future. Always
look to negotiate first right of refusal for connected space or at least a
move in the building to similar quality but different sized space.

A fully informed decision involves a complex matrix of issues. Determine your

priorities and keep an open mind about your options. Once you understand
your office space requirements, it is time to begin your search for your office
location. Visit available spaces in your desired area(s). Your goal should be to
identify at least three sites of interest. By finding at least three sites of interest,
you put yourself in a better position to compare price, compare spaces, and
negotiate the best lease.
Talk to your SearchPath Operations consultant to discuss your

needs and options before going out looking. Once you have
identified your three spaces, run them by us to make sure you are
getting what you need.
Negotiating the Lease

Lease agreements will vary, so there's no way that you can anticipate every
issue that might arise. But all leases should contain certain basic provisions
with which you should be familiar.
Like any contract, the lease should be reviewed by an attorney. Most attorneys
can review a lease in less than an hour, so it's not a big expense, and it's a
safety valve for potential problems.
To get a good deal, you should always try to modify the terms of a lease as
the standard lease is always written in the landlord's favor. It is up to you to
negotiate better terms. Your bargaining power will be greater if the real estate
market is soft due to an overabundance of lease space or a poor economy. In
a soft real estate market, you may be able to secure favorable concessions.
Lease Checklist
This comprehensive checklist identifies the terms and clauses that need to be
addressed in a lease. It also contains questions under each term or clause that
flush out the most important issues pertaining to that term or clause. It's a
good tool to use when you have lease in hand from the property owner and
you want to know whether the lease covers all that it should cover so that
you're properly protected.
After reviewing it, you should be in good position to understand what to look
for in your lease. Any agreement between you and the landlord should be put
into writing. Of course, before signing a real property lease, make sure that
you have your attorney review it.

 Space: Many leases state a base rent per square foot. This rate can be
misleading. What the landlord considers rentable square feet and
what the tenant gets in usable square feet space can vastly
differ. Rentable square footage is more than useable square
footage because it adds a percentage of the common area square
footage to the calculation. Common area space may include
public corridors, elevators, lobbies, and bathrooms. Often this is
a set percentage in a building. So, to compare apples to apples,
you have to know the exact usable square footage of each space
you are considering. Consider your total amount to be paid.
Sometimes a space that's slightly smaller with a higher price per square
foot may work out better for your business because it's more efficiently
laid out.
 Nature and duration of the lease. Determine the term of the lease,
and when the lessee is entitled to possession. Is the lease to be a net
lease? What are the additional charges that you will be responsible for
(like electricity)? What are the duties of the lessor? Many new business
owners want a short lease. That way, if the business is unsuccessful or
massively successful, they aren't stuck in a space that doesn’t fit their
business needs. It may be difficult to get a short lease if you're in a
tight market. When space is scarce, many landlords won't settle for
leases shorter than three years.
 Rent. In the contract, make sure that the amount of rent and when
and how it is payable is stated. If the lessee holds over, what is the
rent for this period? Put a cap on rent increases. Try to get a fixed
percentage rate of annual increase. Depending on your market and the
occupancy level in the building you may be able to get concessions like
free rent or parking.
 Personal Guarantee: Many landlords will want a personal

guarantee for a new business. A personal guarantee protects the
landlord in the event that your company is unable to pay. The
landlord will hold you personally responsible for the remainder
of the lease term or until the space is leased. Avoid personal
guarantees if possible. If a personal guarantee is required, ask
your lawyer to review the clause carefully. Personal guarantees
can sometimes be avoided by offering an additional security
deposit or pre-paying the rent for several months.
 Escalation clause. Since most leases contain a rent escalation clause,

determine whether the escalation is keyed to actual increases in
operating costs or if it is keyed to some index.
 Renewal. You want to look for a lease with an option to renew and
negotiate the terms of the renewal option. The typical annual renewal

increase is 2.5%– 3%. You’ll also need to learn how the option to renew
must be exercised.
 Exclusive. To avoid confusion, ask that no other business similar to

yours be allowed to lease adjacent space or even the same floor.
 Expansion: Provide terms in your lease for potential expansion

requirements. Being able to obtain additional connected space may be
critical for your business in the future. Terms should define whether the
lessee is given a right of first refusal when additional space becomes
available, or if other tenants be moved when additional space becomes
available so that the lessee's areas are contiguous. A good lease will
allow you to sublet the space if you decide to vacate or give you the
right to move to another space in the complex if you need to expand.
 Subletting. Will you be able to sublease the property or to assign the

lease? What is required before the you may sublease? If you decide to
move or find that you're using just part of your space, you may want to
sublease or assign the lease to another business. But most leases won't
allow this without the landlord's approval.
 Allowable Use Most leases also specify the type of work you can do on
the premises. It often is phrased as “for general office use and no other
purpose” to avoid someone opening a business that puts a strain on
building resources like electricity or HVAC. You need to make sure that
whatever the phrasing is it allows for future expansion of your business.
 Taxes, utilities and expenses. Many business owners focus on dollar

amounts without considering what they get for their money. Determine
who is responsible for the real property taxes, utilities, maintenance and
services. A gross lease includes all expenses, but some tenants sign a
triple net lease in which they pay their own property taxes, insurance
and maintenance. In such cases, the base rent is less. If you pay for
services, maintenance, and structural repairs or alterations, determine
if you can contract with whomever you want for these services, or must
they be obtained from or through the landlord. Also watch for non-
monetary clauses. For example, will heating and air conditioning be shut
off after business hours or on weekends? This may be important if you
plan to work odd hours.
 Parking: Be sure that adequate parking space is provided. If the

building doesn’t have parking, make sure that reasonable cost
parking is available nearby.
 Construction. Does the landlord warrant that the building conforms to

all local laws and codes, and will the landlord reimburse the tenant for

correcting any code violations? Do you have right to inspect before

execution of lease and before taking possession?
 Work letter. Space is rarely taken by major tenants in “as is''

condition, whether the building is new or old. The fitting out of the
premises to mutually agreed specifications is accomplished by a work
letter. The latter is a contract between the landlord and tenant
describing what is to be constructed, who pays for it and how, what the
schedule for completion is, who is responsible for delays and cost
overrun and more. Who pays for any Tenant Improvements after the
lease commences? How much control, including choice of materials, do
you have?
 Zoning. What zoning applies to the building, and is your intended use
permitted? Are there covenants or restrictions on the property? If you
are looking at a converted house, are there any easements currently in
place? How about easements that you must get on adjacent property
in order to fully utilize the leased property?
 Liability and insurance. Who is responsible for liability insurance, and

what are the limits? Who carries theft, fire and other casualty
insurances? To what extent does the landlord or tenant excuse the other
party for liability for injury to persons or property? Tenants should
scrutinize any hold-harmless provisions within the lease with great care.
While a tenant may be willing to reimburse the landlord for losses
caused by the tenant, most tenant would not want to hold a Landlord
harmless for damage caused by actions of the landlord. The provisions
should indemnify the landlord only for harm caused by the tenant within
the leased space.
 Tenant “going dark'' rights. Although not an issue in most office

buildings, a fear of many small tenants in a shopping center is that a
major tenant will go out of business or not renew its lease (“going
dark''). In an economic climate in which major department stores are
filing for bankruptcy and closing stores, “going dark” is a real problem.
One remedy is to negotiate a clause that gives a tenant the right to close
its store or get a substantial rent reduction if a major tenant or several
other tenants go dark. Defining “major tenant'' is usually a simple
matter; defining “other tenants'' may be in terms of a percentage of the
total square feet occupied by all other tenants.
 Landlord's solvency. Is the landlord able to deliver on promises?

When the real estate market becomes depressed, more developers and
landlords find themselves in financial trouble that could lead to
foreclosure on the leased premises.
 Destruction or condemnation. Is the landlord required to rebuild if

property is destroyed, and what is “destruction''? Will rent be abated?

May the tenant terminate following total or partial destruction of

improvements? What are the rights of the parties if some or all the
property is taken by eminent domain?
 Termination. What obligations are imposed on the tenant as to the

condition of the property at the end of the lease term? Are ordinary wear
and tear accepted from tenant’s obligation to return property in good
condition?
 Waste. The cause of action for waste is a damage claim by owners

against tenants for improper use of property. Under the laws of some
states, the claim survives a sale of the property so that the former owner
may recover the difference between the unimpaired value and the
selling price. To avoid this result, the lease might provide that the owner
waives any claims in the event of a sale.
 Purchase option. Does the lease give the tenant an option to purchase
the leased property? What is the option price, and when and how must
the option be exercised?
 Grace period. Are there grace periods for default on rent or other
conditions in the lease? What are the lengths of the grace periods?
 Enforcement. Are damages specified for breaches of various lease

conditions? What about attorney's fees for actions to enforce lease
provisions? Arbitration should be provided as a means to resolve any
dispute. To avoid delaying tactics, a simple expedient is to provide that
the losing party pays the arbitration costs, including legal fees.
 Lease commencement date. It is not unusual for a lease to

commence on a date based upon some external event, such as
completion of improvements or upon the present tenant vacating that
can cause a moving in date to be pushed back. Once the
commencement date has been finally established, the parties should
sign an amendment setting forth that date as well as the starting date
for payment of rent. This will avoid problems that may arise in the
future, such as the expiration date and base periods for determining
rental and escalation increases.
 Representations and warranties. The landlord may want the tenant

to agree to disclaim any implied warranty or take the premises on an
“as-is'' basis without any landlord representations or warranties as to its
condition or history. In either case, such a clause will impede the tenant
from holding the landlord responsible for losses attributable to it. A
tenant still wishing to lease the space on such a basis should at least
request the landlord's specific representation as to any problem of which
the landlord is already aware and ask the landlord to have pre-lease
tests conducted by an independent expert.

 Improvements. The tenant may wish to add “improvements'' to the

premises which might be of value to the tenant, but not future tenants.
Determine the extent to which the landlord will allow improvements.
 Right of entry. It may be in the best interests of both landlord and

tenant that the landlord be permitted entry to the premises on an as-
needed basis, despite inconvenience to the tenant, even if a shutdown
for repairs is necessary. The tenant should plan to cooperate in these
situations. Rent abatement for shut-down might be considered.
 Expense allocation. A related issue involves the extent to which

landlords may treat as operating expenses the costs of periodic testing
and of changes to correct problems. Clearly, installation or
replacements of heating and cooling systems would be capital
improvements. Maintenance costs, such as for cleaning and changing
filters, would be operating expenses. Some costs, such as for periodic
testing and for minor systems modifications, might not be clearly
characterized. From the tenant's point of view, work done before
moving in should not be deemed operating expenses. Expenses for
periodic testing and minor modification costs, up to a specified limit,
might be acceptable to the tenant as operating expenses.
 Government reports. Under various federal, state and local laws,

landlords and tenants may be required to report to a governmental
agency the storage, use or release of hazardous substances. Under the
lease, each party should agree to comply with all such laws and to
provide to the other party a copy of any filing or report within a specified
period following filing. The landlord should also agree to provide to the
tenant, within a specified period after the landlord receives it, a copy of
any filing or report made by any other tenant of the building.
 Legal compliance. The landlord may want to include a provision

whereby the tenant is obligated to comply with all present and future
federal, state and local laws, including future environmental laws,
affecting the leased premises, tenant's business, or any activity or
condition involving the premises; to change, reduce or cease any non-
complying activity; and to install pollution control systems, equipment,
safety devices and the like in order to comply.

Communications Needs
Your business is going to need communications capabilities and equipment.
Telephone Service
Not that long ago setting up a search business had an expensive line item,
telephone. To start with you had to choose a phone system and to do it right
it had to have all the bells and whistles. Your phone service is one of the most
important you make. The phone is often the easiest way to reach your
customers, clients, and partners. It should also be the easiest way for them to
reach you. You do not want your important callers to be routed incorrectly,
disconnected, or faced with a bewildering array of automated options.
In the past to get everything you want; you would end up having to invest in
a “phone system”. Today, there is a technology solution that removes that
upfront cost, VoIP.
Voice over Internet Protocol often referred to as “digital voice” services.
With VoIP, you can make a call from anywhere you have decent internet
connectivity. you can place calls from your laptop anywhere in the broadband-
connected world using a program called a softphone. Softphone apps can also
be loaded onto you cell phone so that you can use Wi-Fi access or even cell
data connections to control cost and your availability. Most commonly our
offices use products from CounterPath.com. As long as you have a
headset/microphone.
There are a number of VoIP providers such as Vonage, 8X8, Ring Central and
your local cable company. SearchPath has had a very successful relationship
with a smaller company called DLS for over 10 years. DLS provide a quality of
service and more importantly a quality of customer service that makes it the
right choice of providers for new SearchPath offices. DLS provides a DID
(phone number) and unlimited domestic long-distance access for a flat $22.95
/ month.
You can use a handset / headset with VoIP. Some of the major providers are
Polycom, Cisco and Avaya. Each provider has particular units that work best
with their systems so make sure you find out which ones they prefer. All VoIP
handsets support both wired and wireless headsets. Just as in the old days,
the cost of a handset / headset combination can run from under $200.00 to
over $800.00.
A cost saving advantage is that you can have a single provider who delivers
internet access to you that you use to get to your VoIP provider.
The current Public Switched Telephone Network (copper wire) is a robust and
bulletproof system for delivering phone calls. Phones just work, and we've all

come to depend on that. Let's face it -- few people really panic when their e-
mail goes down. It's expected from time to time. On the other hand, no dial
tone can easily send people into a panic. What the PSTN may lack in efficiency
it more than makes up for in reliability.
Prices and services vary so it's best to do a little shopping.
Long-Distance Service
The discussion about long distance as a price point has

effectively gone away. Almost every “landline” provider has an
unlimited program that is cost effective.
To find the right long-distance service provider for your company, it is

recommended that you first determine your needs by analyzing your calling
patterns. Do your best to answer the following types of questions:
 How often will I be making long-distance calls?

 How long will my calls generally last?
 When will I primarily be making the calls?
 Where will I primarily be calling?
A search firm typically has a high volume of long-distance calls. A consultant

averages three to four hours and 80 to 100 outbound calls per day. Depending
on the practice specialty of the consultant and target region, the majority these
calls will be long-distance.
Although cost is important, don't discount the quality and reliability of a

provider's services. A great rate won't be much good if your calls don't go
through, if the lines are garbled, or if you can't get immediate attention from
a service technician should you need assistance. On the other hand, in most
areas every long-distance provider offers the same excellent service, and there
really isn't any noticeable difference among them.
Pay attention to how you're treated when you first contact a company. Were
you treated with courtesy? Was an interest shown in your business? Was
adequate time taken to make sure that you understood the details of the
company's plans? Were you put on hold for an inordinate period of time?
Chances are that if the company's service wasn't very good initially, it won't
be much better after you've signed on.

Toll Free Numbers

The cost of your own toll-free number may be less than you may think.
Competition has made this a handy bargain way for clients, candidates and
partners to reach you. The base charge is often around $20 a month and 20
cents a minute with no special lines or equipment required. The calls can be
forwarded to any line you choose.
You'll want to do a lot of research before deciding on a toll-free number. Whole

new blocks of numbers, with area codes of 888, 877, 866 etc. are available.
Take advantage now to get a catchy number or word combination (e.g., 1-
800-COLLECT).
Mobile Service
There are some people in our business that don’t use PSTN or VoIP, they
instead use their mobile phone and carrier. Almost every carrier offers
unlimited talk and text and some even offer unlimited data plans. Mobile
“smart” phones expand your work week into 24/7 which can be good and bad.
You are only unavailable when you choose to be. This can create unrealistic
expectations so make sure that the people who have your number understand
that there may be times that you will have to get back to them later. Although
if you live in France it is understood that you don’t have to take work calls or
read work emails over the weekend. Some offices pay for their employee’s
cell phones with the understanding that sometimes they will have to take a
work call or respond to an email. Laws concerning privacy, hours and
compensation are changing, stay in touch with us to keep informed.
Computer Needs
Computers can help you to become more organized, to work more efficiently,
and to accomplish many tasks that otherwise would likely require professional
assistance. Our advice that you should never acquire any business asset that
you don't really need definitely applies to computers. If you need assistance
with your computer, you are welcome to contact SearchPath’s Director of
Technical Services.
However, don't rush out to purchase a computer without first determining how
you specifically intend to use it to aid your business. Otherwise, you may find
that you've tied up excess capital in a system that does far more than you
really need or, even worse, that you've acquired a system that doesn't
accomplish what you expected and that ends up being a rather expensive
paperweight.

You should also ask yourself if you're really ready to invest not only your
money, but also your time in learning to use the computer in your business.
Rest assured that when you do decide to take the plunge, you're going to be
spending many an hour just becoming familiar with even the most user-
friendly of computers and programs and incorporating the computer into your
daily routine.
Software
For a computer to accomplish the tasks you desire, you must supply it with
the proper applications software. Applications software are computer programs
that instruct the computer on how to perform specific functions.
Stick to what you know. Windows vs. Apple is no longer an issue as both
major platforms support the software you need for your business. Your first
real decision is Microsoft Office 365 vs Google Apps. Both are cloud based
suites of the major productivity programs. Both offer word processing,
spreadsheet and presentation apps. Both have an email and calendar app.
Both can cost you between $5 and 15 dollars per month for the full-service
versions. There are free versions that both offer but they probably won’t fit
your business needs.
Because PCRecruiter as well as most other CRM products are now also cloud
based the choice of Microsoft over Google is minimal. PCRecruiter does
perform best with Chrome by Google as a browser and Outlook from Microsoft
as an email client.
Hardware
The physical equipment that comprises a computer system represents the

system's "hardware." The basic hardware components of any computer are the
central processing unit, a monitor, a keyboard, disk and hard drives, and a
printer. Once you've determined the types of programs you'd like to use, you
can then make an informed decision as to what you'll need in terms of
computer hardware to properly run the programs. For the most part there are
only a couple of questions that you need to answer before going out to buy a
computer. The first is a laptop or a desktop. Desktops are usually much more
cost effective, but very hard to take on trips. If you do decide to get a laptop
or a laptop/tablet combination invest in a good docking unit. This will allow
you to create a solid work area using full sized keyboards and mouse. Good
ones also support multiple monitors. The most common configuration in use
today also has 2 or more monitors. You can end up spending more on the
peripherals than on the computer.
While we don’t print as much as we used to, you should plan to purchase a
multifunction unit that can print and scan at a minimum. The ability to send

and receive faxes as emails needs the availability of the scanner especially if
you have to print, sign and return something electronically. Please contact us
if you have questions about hardware or need assistance to purchase
hardware.
Protecting Your Systems

Where would you be if you should happen to lose the use of your computer or
the information it contained? It is critical that you take adequate steps to
protect your data and equipment.
As is the case with any of your valuable assets, you need to be concerned
about protecting your computer system from theft and damage by natural
causes (floods, fires, earthquakes, tornadoes, etc.). Accidents, ranging from
coffee spills to accidental deletion of files, are another threat to your system,
as are intentional acts of destruction and damage.
Apart from ensuring your computer system, steps you should take to protect
your system include the following:
 Run all of your equipment through a surge suppressor, not a power strip,
rather than directly through a wall outlet. Abrupt changes in electrical flow
can instantly damage sensitive components and corrupt files. Surge
suppressors ensure that the electrical flow to your system remains
constant. If you're in an area that suffers frequent blackouts or brownouts,
you should probably investigate acquiring a unit that provides both surge
suppression as well as back-up battery power.
 Make backup copies of all your software and important work files. Keep one
set of the copies at your work site (where they'll be readily available if
needed) and safely store the other set off site. Look at one of the online
backups and storage programs or check to see if the program suite you
chose comes with storage.
 Use “strong” password protection this allows you to keep sensitive

information without fear of someone unauthorized accessing it. Don’t think
that because you aren’t Yahoo that you aren’t subject to being hacked.
Learn to lock your technology doors the same way you lock your doors at
home.
 Make sure you are running a “real time” protection anti-virus program.
There are some very good “free” options. Most also scan for malware,
adware and spyware. Get in the habit of regularly running a scan on your
hard drive. Remember, it takes only one unchecked virus to cause a
potentially devastating loss of both information and the use of your valuable
computer equipment. Don’t limit the protection to just your computer,
make sure you protect your mobile devices.

BYOD (Bring Your Own Device)

More and more we are a connected society and more and more our personal
preferences determine our technology choices. One of the hottest topics for
both HR and IT professionals is the impact of allowing an employee to Bring
their own equipment to use at work. While this may seem like a very cost-
effective idea on the surface the need to ensure that sensitive information is
protected may tip the scales. If you do allow an employee to use their own
devices (cell phone, laptop etc.) make sure that you have a solid technology
usage policy in place. We will cover what makes a good policy later in this
manual.

SearchPath Operations Manual Employees
Employees
Importance of Your Hires
For SearchPath to be able to provide the best talent to its clients, we must hire
the best individuals to get the job done. Each person you employ is an
important business consideration. The people you choose to work for you will
affect the culture of your organization and its success. It is important to
choose individuals who compliment your values and will drive revenue.
Developing a Hiring Strategy

Before investing any time or monies to acquire talent, you must develop a
hiring strategy.
Personal Considerations
Many franchise owners may not consider the time and personal investment
required to hire an employee. When determining your hiring strategy, you
must ask yourself:
 Do you have the time to devote to sourcing and interviewing potential
recruiters?
 Do you have the time to devote to orientate, train and coach a new hire?
 Do you have the patience to train, coach and mentor an individual knowing
that the time spent will pull you from your own production?
 Can your personal production endure the neglect and financial
consequences as a result of you devoting your time to a new hire?
 Do you have the patience to assist a new individual on the basics of the
business? You must be able to listen to and answer the many questions a
new individual will ask in the course of their initial development.
Financial Considerations
Hiring an employee does require a financial investment, even if they would be
willing to work on a commission-only basis. When determining your hiring
strategy, you must ask yourself:
 Do you have a minimum of 3 months of financial resources to cover
operating expenses (phone, technology, office space, etc.)?
 Do you have a minimum of 3 months of financial resources to attract the
best candidates?
 Do you have a minimum of 3 months of financial resources to offer
competitive benefits? Benefits are an important factor to candidates when
joining an organization.

 Have you considered the impact on your production and how that will
change the answers above?
Types of Hires
After deciding to hire someone, you need to determine exactly what you want
the person to do for your business. Before you start the process of hiring,
figure out what you want — it's the best way to make sure that you get the
right person for the right job. Below are the roles typical in a search firm:
Researcher
Do you have an abundance of retained searches and need a person to focus

solely on sourcing candidates? If yes, consider hiring a researcher. A
Researcher’s main objective is to identify target areas within your niche
including potential client companies and candidates. Their activities should be
related to the specialties practiced within an office. Examples of
accountabilities include:
 Uses a variety of sources to identify potential targets, including

networking for referrals, databases, and the Internet.
 Manages and tracks activities for optimal performance.
 Conducts research to identify prospective clients and candidates.
 Manage relationships on social networks.
 Stays current on relevant web sites.
 Filters resumes received.
 Researches companies and gather names
 Maintains the office database
Fulfillment Associate
Do you have an abundance of retained searches and need a person to focus

solely on sourcing candidates? If yes, consider hiring a researcher or fulfillment
associate. A fulfillment associate’s main objective is to identify an array of
qualified and interested candidates for specific searches. Their activities
should be related to the specialties practiced within an office. Examples of
 Uses a variety of sources to identify potential candidates, including

networking for referrals, databases, and the Internet.
 Qualifies potential candidates and forwards information on to the project
manager or consultant.
 Updates the Candidate record in the database.
 Prepares Candidate Profiles for submission.

Project Manager
Do you need an individual to source candidates and manage the process? If

yes, consider hiring a project manager. A project manager handles all functions
of the process except for client development Project managers typically work
in tandem with search consultants who have a high volume of client needs.
Examples of accountabilities include:
 Sources, contacts and qualifies potential candidates.

 Manages the presentation, interview, offer and resignation stages of the
hiring process.
 Continually follows up with candidates to maintain relationships and
seek referrals or additional business.
 Maintain the flow of information in the database and position pipeline.
Search Consultant
Do you need an individual to build client relationships, source and development

candidates, and manage the entire process, and follow-up? If yes, consider
hiring a search consultant. Search consultants can work in tandem with
established practice specialties of the office or can be brought on to penetrate
new markets. Examples of accountabilities include:
 Networks and markets services to develop client relationships.

 Identifies client needs and proposes appropriate solutions that
complement the client’s need, budget and timing.
 Prepares and submits service proposals to clients.
 Sources, contacts and qualifies potential candidates.
 Manages the presentation, interview, offer and resignation stages of the
hiring process.
 Continually follows up with clients and candidates to maintain
relationships and to generate referrals or repeat business.
Administrator
Do you need an individual to help you get organized and run the office
efficiently from an administrative perspective? If yes, consider hiring an
administrative associate. In the early stages of a franchise, the key hire is
your administrator. This is the person who alleviates the burden of all
administrative functions from you so you can focus on building your business.
However, your administrator can also assist you in identification of clients and
candidates to drive revenue into your business faster. As your office grows
and workload increases, it will become necessary to have administrative and
research functions managed by separate individuals. Examples of

 Greets and directs visitors to appropriate person.

 Practices effective and efficient customer service.
 Prepares routine correspondences, notes, and reports.
 Files correspondence and other records.
 Arranges appointments, travel schedule and reservations.
 Reads and routes incoming mail.
 Execute communication and process flow between office staff, clients,
candidates, vendors, and partners.
 May assume responsibility for database administration and maintenance
 May keep personnel records.
 May assume responsibility for accounting and payroll functions
 May develop and implement plans to ensure compliance of workers with
established programs, procedures, and practices.
 May analyze operations to determine areas where cost reductions could
be implemented, or program improvements initiated.
 May analyze operations to determine areas where cost reductions could
be implemented, or program improvements initiated
Status Options Considerations

After evaluating the personal and financial considerations and the role you
need, you'll need to determine your options: Full-Time Employee, Independent
Contractor, or Part-Time Employee. Each option has pros and cons:
 Employee or Independent Contractor:

Although an employee and independent contractor often perform similar
duties, the obligations of the employer are different for each. As an
employer, the likelihood of providing an independent contractor with
worker’s compensation insurance is minimal. In addition, you will not have
to match an independent contractor’s unemployment insurance. Finally,
and most importantly, as an employer you do not have to pay any portion
of an independent contractor’s CPP/QPP contributions.
However, the two main distinctions between an employee and independent

contractor are as follows. First, independent contractors do not have to
follow orders. They can decide when they work, for how long, and what
they want to work on. Second, employees are exclusive, meaning they work
for one company.
Use caution when bringing on independent contractors. If this person is

really acting as an employee, you may be required to pay back taxes,
interest and penalties to the federal government. If there is any question
in your mind about your exposure with the CRA on if a person is a T4A
Independent contractor, click here to see the CRA T4A Information. In
recent years there have a number of high-profile cases where the status of
employees was challenged; Uber, Conde Nast and Dynamex to name a few.

 Part-Time Employees
Part-time employees can be very useful for a new business. For one, they
allow you to get the most out of the employee in a short period of time.
They also allow you to keep your overhead expenses in check.
However, part-time employees are just that. They typically work 20-30
hours per work week for a minimum of 4-7 hours a day. If this employee
works over 30 hours, as the employer you may be responsible for treating
them as a full-time employee with all of the appropriate benefits.
Legal Considerations
Whether or not a business is subject to specific employment laws depends on
how many employees that business has and for how long. There's a large array
of federal and provincial laws that are subject to change. In some provinces,
it only takes one employee to make you subject to certain employment laws
while other laws have a 25-person minimum.
So, understanding your legal liability as an employer involves four things:

1. Understanding the definition of an employee.
2. Knowing your liability under federal employment laws
3. Knowing your liability under state employment laws
4. Structuring contracts for non-employees to minimize liability
If you decide to hire or use independent contractors or part-time employees,

it's extremely important that you become aware of all the federal and
provincial laws that can affect your relationship. Consult with your attorney,
CPA, or the firm that will provide payroll services for your employees to provide
you with the correct answers to above questions based on what state your
business will be in.
Identifying Potential Employees

Once you have identified that it’s time to hire, you need to identify the type of
individual you want to become part of your business. Hiring the right people
is the first step to building a successful office. Remember that the candidates
your clients pay to hire must be the best. Therefore, the individuals you hire
as recruiters must be the best. There is no place today for mediocre recruiters
because there is no place today for mediocre search firms.
Your main objective when hiring is to recruit, assess, and hire those who will
be successful both in the role and the work environment. This concept is
simple, yet many companies interview for the wrong requirements and give

candidates unrealistic or limited views of their cultures, work settings, and job
opportunities. Your focus must be on hiring individuals who are right for you,
your group, and your company. The result of hiring the wrong people is poor
productivity, poor retention, or both. Getting rid of poor hires also ends up
being expensive, difficult, and frustrating. The implications of bad hiring
decisions far out-weigh the necessity of bringing people in quickly.
The most important step in the hiring process involves setting expectations for
the search and writing a job description with talent suitability components.
This allows you to thoughtfully identify the skills, traits, and attributes needed
to be successful in the role and the type of environment the new employee will
be entering. The important thing is to be realistic rather than idealistic.
Company values should also be included so you make a hire that fits the
behaviors and ethics expected. Some of the information gathered will be for
the job description, and the rest will be used to determine the success factors
needed throughout the hiring process. Behavioral and ethical factors include:
 Enthusiasm and Passion. These are characteristics that cannot be

learned. The person must demonstrate excitement about the position,
working for you, and joining the organization. If they are unable to
demonstrate their enthusiasm and passion to you, then it will be difficult
to show their passion to acquire clients and candidates.
 Coachable: SearchPath can train the process and skills needed to be a

successful search consultant. However, the individual must be willing to
listen and follow the directions of experienced leaders in the business.
 Dedicated / Committed: They have to be willing to invest the time

and effort into themselves and developing their practice. Time has
proven that there are no short cuts or easy ways to achieve success.
 No Phone Reluctance: Recruiters spend a majority of their time each

day on the phone. Individuals must be able to pick up the phone and
begin conversations.
 Business-oriented thinker: Recruiters must understand business as

well as recruiting. The individual must be able to understand, discuss,
and describe challenges faced by organizations and current business
trends.
 Sales mentality: Recruiters deal with complex issues on a daily basis.

Individuals must be open to learning and embracing sales skills such as
the ability to prepare, present, question, listen, qualify, negotiate, and
close. These skills are essential to be able to assess each situation, make
intelligent decisions, and obtain decisions and commitments.
 Competitiveness: Competition is often a motivating force for success.

The individual must achieve self-satisfaction from winning.

 Resilience: The individual must have the ability to bounce back in the
face of adversity (call rejection, delayed processes, turndowns, etc.).
 People Skills: The individual must possess great people skills to

cultivate long-term relationships with company decision-makers,
influencers and top performing candidates.
 Comfortable with technology. Technology plays an increasingly

important role in the life of a recruiter. The basic tools of a recruiter are
their computer and their phone. Individuals must be comfortable with
the Internet, email, Office / Google suites, web-based research tools,
texting and learning to use a contact relationship manager (CRM)
software.
Sourcing Potential Employees

Although your aim is to attract candidates, the focus should be on attracting
the right ones. It is important to prepare a job description that will make
sourcing more effective. Care should be taken in defining and communicating
the job requirements and desired skills, traits and characteristics to be a top
performer. The job description should define what your company and group
cultures are like, reflect reality and not fantasy, and sell your opportunity.
Once the job description is created, the next step is to devise a plan to target
high performers who will thrive in the industry and in your environment. Below
are several sources for targeting individuals:
 Present the opportunity to top performing candidates in your local

market.
 Network with people you know to obtain referrals.
 Establish reward systems to encourage existing staff to make
referrals.
 Post your opportunity on a job board.
Interviewing Potential Employees

Once you have sourced an individual, you need to begin a structured interview
process to determine if there is a mutual fit.
1. Conduct a phone interview. Provide a brief description of your

opportunity and ask the individual to identify skills and situations in their
background that match your need. As the person describes his/her
experience, the key points to gauge are:

 The individual’s ability to communicate effectively.

 The individual’s ability to articulate their career experience and
objectives.
 The individual’s ability to utilize listening skills.
 The individual’s ability to ask questions.
 The individual’s ability to demonstrate excitement and interest.
 The individual’s phone presence (tone, pace, inflection).
If this is your first time hiring, it is recommended that you have a

SearchPath staff member conduct a follow-up phone interview prior to
scheduling an in-person interview. The purpose is to provide you with
another perspective, which can result in key areas to examine in the in-
person interview.
2. Based on the outcome of the phone interview, have the individual

forward a copy of their resume, LinkedIn address and reference
information. The more information you have the better.
3. If you are intrigued by the individual’s performance in the phone

interview and information collected, conduct an in-person interview at
your office with just you. During the first in-person interview, you must
interview for skills, traits, and attributes that will ensure the candidate
is a good position fit and group fit. It is important to be a detective and
ask questions, and to be a salesperson and sell your opportunity. In
addition to focusing on the skills, traits, and attributes required for the
position, disclose realistic information about the company and group
culture. The goal is to allow the candidate to learn more about the
opportunity and environment. The right fit will be motivated by the
opportunity, the wrong fit won't.
4. Check to see if they have phone reluctance or technology challenges.

Some people get enamored with technology and fail to execute. Some
overthink the process. Give the person a challenge by handing them
their resume and tell them to do some internet research and to call you
(from the office) and sell themselves to you. Things to look for:
• Does it talk more than 5 minutes to call you? (could be assign of
phone reluctance)
• Does it take less than a minute to call you? (failure to follow
instructions)
• Do they sell themselves or read their resume? (sales skills)
• Do they ask questions that show they did research? (tech
comfort)
• Do they engage you in conversation? (EQ)
5. If there is mutual interest to move forward in the process, have the

individual identify potential areas of interest for their practice specialty.

The person should create a list of individuals they know professionally

by name, organization, and role within an organization. This list enables
you and the individual to further identify practice specialty options. It
can be used to identify contacts that will be able to provide information
on what is happening within their industry.
6. If the individual has done their research, conduct a second in-person

interview at your office with staff members. The objectives in the
second interview are to show them what it is like to be a recruiter,
answer remaining questions, and identify level of commitment. Have the
individual shadow the top performing search consultant in the office.
This common practice enables the individual to experience what a
recruiter does, which puts them in a better position to determine if they
really are interested in being a recruiter. After the individual meets with
your staff and shadows a consultant, meet privately to answer
remaining questions and determine if the candidate is ready to commit
to your opportunity – “Is this what you want?” The right person for the
role, group, and company will be highly motivated to join. The wrong
person won't even get past the interview day, and many unsuitable
candidates will "select out" themselves.
7. Evaluate the candidate. If the candidate is right, then conduct reference

checks. Structure your reference questions to learn about their past
performance and character as it relates to your opportunity. If the
individual is not right, call the candidate and make them aware that you
have decided not to move forward in the process with the individual.
8. If the references support your decision to move forward with the

individual, the next step is to extend an offer. When extending an offer,
the candidate should demonstrate excitement and make a timely
decision. If the candidate is unable to make a timely decision, the
individual must be able to express a valid reason such as their need for
additional information from you.

Compensating Talent
Compensation Plans: Search Consultants
There are three recommended compensation plans owners can offer search
consultants. Each consultant is encouraged to choose the plan which will best
maximizes his/her individual production.
Traditional Plan
The consultant will be an employee of SearchPath and will be compensated as

follows:
An appropriate monthly draw payable bi-weekly according to SearchPath’s

normal pay schedule.
A commission on cash-in for each placement on an annual basis as follows:

• First $100,000 cash-in 42%
• $100,001 to $300,000 cash-in 45%
• $300,001 to $500,000 cash-in 50%
• $500,001 + cash-in 55%
Benefits will be available for the consultant.
Traditional Plus Plan
The consultant will be an employee of SearchPath and will be compensated as

follows:
A minimum monthly draw payable bi-weekly according to SearchPath’s normal

pay schedule.
A commission on cash-in for each placement on an annual basis as follows:

• 50% of cash-in for every placement made.
Benefits will be available for the consultant.
No Net Plan
The consultant is an independent contractor and will be paid on a straight

commission basis payable as T4A income. The commission percentages will
be as follows:
• 64% of cash-in

The No Net Plan consultant will be eligible to participate in SearchPath’s 30

Days to 90% Program where the consultant will receive 25% of the initial
placement fee at billing in year one, provided certain conditions are met and
the initial placement is made within 30 days of the consultant’s start date.
In order to qualify for a 90% commission level on the initial placement it must
be made within 75 days of the start date for each consultant.
The consultant will also be eligible for a 90% commission on an annual basis
for the initial deal each year if he/she produced $250,000 or more cash in the
previous year.
Regardless of compensation plan the consultant is also eligible to participate

in the referral of new SearchPath franchises. If a consultant sources and places
a prospective franchisee, the consultant will receive a $3,000 finder’s fee as
cash compensation subject to all applicable payroll taxes. The consultant will
also be eligible to receive 5% of the royalties received by SearchPath up to
$5,000.00 per year. The consultant must be employed on a continual basis to
receive this.
The following pages show a comparison between the three compensation plans
and detail the revenues a consultant would earn with SearchPath under each
compensation plan.

Compensation Comparison
$100,000 producer
Assumes $100,000 cash-in over a 12-month period with an average placement fee
of $10,000.
Traditional Plan--assume a $2,000 a month draw
$2,000 a month draw $24,000.00

42% of first $100,000 cash in $42,000.00
Less draw of $2000 per month $(24,000.00)
Total compensation $42,000.00
Traditional Plus Plan--assumes a $1,000 a month draw
$1,000 a month in draw $12,000.00

50% of cash-in $50,000.00
Less draw of $12,000 per month $(12,000.00)
No Net Plan
64% of net cash-in $64,000.00

$200,000 producer
of $20,000.
$2,000 a month draw $24,000.00

42% of first $100,000 $42,000.00
45% of next $100,000 $45,000.00
$1,000 a month in draw $12,000.00

50% of cash-in $100,000.00
No Net Plan
64% of net cash-in $128,000.00

$500,000 producer
of $25,000.
$5,000 a month draw $60,000.00

42% of first $100,000 $42,000.00
45% of next $200,000 $90,000.00
50% of next $200,000 $100,000.00
$1,000 a month in draw $ 12,000.00

50% of cash-in $250,000.00
No Net Plan
64% of Net Cash-in $320,000.00

* keep in mind that employees get benefits and taxes which will add at least 16% to
their comp.

Compensation Plans: Project Coordinators

Compensating a Project Coordinator is different than compensating a traditional
“360” AE. Project Coordinators are typically paid a base salary with a bonus or
commission paid on each candidate placed.
The following are examples of compensation plans:

Option #1- Base Salary: $30,000 Commission 2.5% of the placement fee after
royalties.
Option #2- Base Salary: $25,000 Commission 5% of the placement fee after
royalties.
Option #3- Base Salary: $25,000 and $750.00 per placement where net fee is less
than $15,000
$1,500 per placement where net fee is greater than
$15,001
Compensation Plans: Researcher

Similar to compensating a Project Coordinator the Researcher roll has even less at-
risk income. Normally a Researcher has a base and a very small bonus as a pure
Researcher never really talks to the people they identify. Bonuses are based on
information they surface results in a placement.
The following are examples of compensation plans:

Base Salary: $ 10.00 - $15.00 per hour
Bonus of $500.00 per placement where net fee is less than $15,000
$1,000.00 per placement where net fee is greater than $15,001
Compensation Plans: Task related bonuses

You incentivize behavior that you want repeated. You can give small (<$50.00)
bonuses or run contests for tasks associated with completing an assignment:
 $”x” per data sheet taken
 $”x” per qualified candidate surfaced
 $”x” per qualified job order surfaced
 $”x” per first time send-out
 $”x” if phone time greater than 2 hours
 $”x” if # of business conversations greater 15

The On-Boarding Process

The purpose of using an on-boarding process is to ensure a seamless start for your
new employee. This will keep you organized and focused on completing the essential
tasks associated with hiring a new employee.
Once you have determined to hire a new employee for your office and an offer has
been extended and accepted, there are certain actions that must be executed.
Prior to start date:
1. Ensure the new employee has desk space and essential supplies.
2. Ensure a computer is available for the new employee. Be sure that it is free of
viruses, unnecessary programs, and unnecessary files. Make sure that it has all
of the programs and extensions they will need to use. A current list of those can
be found in the appendix.
3. Set up a phone extension for your new employee. *
4. Add new users to database, networks, or other needed programs. *
5. Obtain and configure email account. *
6. Inform your accountant and your payroll provider that you have new employee
starting and when.
7. Inform HQ when your new person will start and register the person for the first
available training course.
8. Discuss the new employee’s practice specialty with the trainer at HQ.
9. Have four (4) HPC’s ready for the new employee to begin client development.
10. Have a database of prospects downloaded into PCR.
11. Create hard copies of all of the forms the individual will use.
12. Provide new hire with pens and a note pad to use during their training.
* these steps may require assistance from HQ
Day One:
1. When the employee arrives, greet the person immediately.

2. Introduce or re-introduce the new employee to the team.
3. Take the new employee into conference room or your office and complete the
necessary new hire paperwork which includes:
 Form TD1 for current year, which you can download from the CRA and
provincial tax authority or obtain from the organization providing your
payroll service.

 Get their SIN information and if it starts with a 9 you also need to get
additional prove of eligibility to work.
 Employment Agreement (download from the Intranet website).
 Review Employee Handbook and have the new hire initial and date the
acknowledgements page (download from the Intranet website and adjust
with your selected policies).
4. Review employee benefits if applicable.
5. Acquaint the employee with the office surroundings and their space.
6. To prepare the new hire for the Search Consultant Induction course, have the
new employee read Specialty 1 of the SearchPath Search Consultant Training
Manual prior to entering the Search Consultant Induction Course.
7. Introduce employee the new employee to your recruiting software and other
programs / services available.
8. Meet privately with the new employee at the conclusion of the day to get their
impressions of their first day and address any concerns.
Training Employees
People will join your organization because of you. They join because of the picture
you painted during the interview process. People also leave because of you if you do
not follow through to bring the vision shared to reality.
SearchPath’s Search Consultant Induction Course covers the basic methodology and
the fundamentals. It is the owner’s responsibility to impart additional knowledge that
is specific to:
 Your business philosophy.

 The services your office provides.
 The differentiators of your office to other search firms.
 The policies and processes adopted and enforced by your office.
 Required metrics reporting.
 Required processes for data integrity.
It is not enough to provide initial training. You must continually coach and mentor
individuals throughout their career. Continual training:
 Creates a stronger, more effective employee

 Builds loyalty to you and your office
 Raises the bar for acceptable activity and performance

 Reduces turnover
In-house continuous training can be achieved by observing a top performer, role-

playing, one-on-one coaching, and group sessions. There are also network resources
to help you further develop your employees:
 SearchPath Intermediate Training classes and coaches

 SearchPath Advanced Training classes and coaches
 SearchPath Operations / Training, on-site office visits
 Resources for third-party sources (Internet, vendor partners, consulting firms,
etc.)
Effective Leadership
One of the primary duties of a franchise owner is to keep the performance of
employees at a high level. Indeed, much of what a franchise owner does will affect
the productivity level of the employees. Your approach in the beginning and
throughout an employee’s career will increase their ability to become a high
performer. The four traits that will help you are coaching, feedback, counseling, and
discipline.
Coaching
Coaching is the ongoing, informal training and encouragement that a manager gives
employees on a regular basis. It confirms to the employee that he or she is doing
well and gives him or her confidence to continue the behavior. Coaching typically
takes place at the employee’s workstation during normal, day-to-day activities. The
manager coaches when he or she offers a piece of advice or a quick sentence of
praise. Coaching does not have to be entirely verbal, though. Coaching benefits both
employees and leaders as it:
 Usually takes only a few minutes. This means it doesn't interfere with anyone's
routine.
 Prevents small problems from growing, often preventing more extensive or
serious measures later.
 Helps employees see that the manager cares about them and appreciates their
improvement.
 Helps employees understand and fulfill the company's quality standards.
Coaching is fairly simple. The manager must observe the employee’s work carefully
enough to be aware they are doing something right or that they have a problem, but
not so closely that the employee feels spied upon. The manager must then decide
how to approach the employee and when to do the coaching.

Another coaching method involves pairing an experienced employee with the

employee that needs help or is new to the company. This “buddy” system can help
transfer the good work habits of one employee to the other.
Feedback
To truly improve employee performance, managers need to provide feedback on an
ongoing basis. Immediate feedback is the most useful as it usually leads to improved
performance as soon as it is given. It also helps prevent employees from forming bad
habits that quickly become ingrained.
Feedback can be positive or corrective. Positive feedback consists of giving a reward

to employees when they do something correctly or well. It includes raises, bonuses,
promotions, formal recognition at meetings, or just plain praise. It tells employees
what they are doing well and encourages further efforts. It can also prevent discipline
problems from occurring later on.
Corrective feedback involves showing an employee a quick way to solve a

performance problem. It can be uncomfortable to give corrective feedback. One way
to ease the discomfort is for managers to recognize that corrective feedback can
benefit the employees as well as the company. How? It shows employees what they
can do to work more effectively and confidently, it helps them develop good work
habits, and it increases motivation as employees know that their manager cares
whether they do a good job.
Some managers even find it difficult to deliver positive feedback as they worry about
sounding insincere, glossing over other performance issues, or being accused of
favoritism. Yet, positive feedback has too many benefits to ignore. It boosts employee
confidence levels, reinforces good work habits, and increases motivation as
employees will realize that their manager notices when they do a good job. Here are
some tips for providing corrective feedback:
 Ask employees how they can correct the problem and create an action plan
together.
 Provide corrective feedback only in private and then don't raise the issue again
unless it is necessary.
 Remember that feedback is a two-way process. Give employees a chance to
respond or explain why something was done a particular way.
 Don't get personal; criticize the performance, not the person.
 Explain the consequences if behaviors or performance does not change. Help them
to see the big picture and promote teamwork.
 Be specific. Concentrate on a single performance issue or problem at a time.
 Make sure your explanations are clear.

Counseling
Counseling is the step that follows coaching and feedback. It is a more serious step
and is taken when a manager is concerned that an employee doesn't understand
expected performance standards. Used correctly, counseling may:
 Show the employee what they need to do to improve performance.

 Prevent disciplinary actions or terminations.
 Reduce turnover and its associated costs.
 Show employees that the manager is committed to their job success.
 Help the manager fulfill legal obligations to employees.
A counseling session takes more planning and preparation than either coaching or
feedback. A manager needs to have a definite objective for the counseling session
based upon observed deficiencies. Some managers find it helpful to write out exactly
what they will stress and what questions they will ask employees. Managers should
schedule the session when it won’t interfere with the employee’s regular work. They
should also tell employees when the session will be as far in advance as possible. It
is recommended to document counseling sessions to record that a discussion took
place with the employee. The documentation should be placed in the individual’s
employee file. This documentation serves as a reminder of what was said and will be
used for reference should further actions be necessary.
Finally, managers should try to understand how the employee feels about the
counseling process and the topics under discussion. The manager needs to present
the information in a way that won’t make the employee feel stupid, punished, or the
victim of personal differences. He or she should also plan how to end the session on
a positive note.
When conducting a counseling session, a manager may want to consider these steps:
1. Write up a counseling memo outlining the area that will be addressed, allowing
for comments from the employee and both parties signature. Make sure the
employee knows that they will be able to add comments and need to sign off
on the memo.
2. Hold the session in a private place where there will be no interruptions.
3. Establish a comfortable atmosphere, emphasizing that the manager is trying
to help the employee improve.
4. Start slowly, appearing calm and patient so as not to threaten the employee.
5. Describe the problem in a caring, positive way, making it clear that the goal is
to discuss the problem and solve it, not to blame the employee.
6. Keep the session focused on the issue.
7. Ask the employee to help solve the problem or identify its cause.
8. Listen actively. Listen more than you talk.
9. Ask the employee to add any written comments and sign the memo.
10.Set an appointment for a follow-up session.

Discipline
Managers are responsible for enforcing company rules and procedures. Most
employees try to do as they are supposed to, but when they don’t the manager has
to use discipline. Discipline is often a last-resort technique implemented when
employees break rules or as a precursor to termination.
When an employee’s performance or behavior interferes with the orderly and efficient
operation of the business, or is in violation of our rules of conduct, it may be
necessary to take more serious steps to correct their performance problems. It is
important that the manager be consistent in their management style and disciplinary
actions. Disciplinary actions may take the form of verbal warnings, written warnings,
suspension without pay and/or termination of employment.
A major reason managers dislike having to discipline employees is that they think
“punishment” rather than “teaching.” Discipline should be a technique to help the
employees be more successful in their jobs. Indeed, its objective should be to
encourage employees to follow the rules, and to set up an atmosphere of mutual
respect and job satisfaction. The following are recommended disciplinary action
steps.
Verbal Warnings
If the discipline problem is a small one, managers can correct it quickly by stating
the rule, explaining it, discussing why it is in the employee’s best interest to follow
the rule, and then offering encouragement. It is recommended to document verbal
warnings to record that a discussion took place with the employee about a problem
or incident. The documentation should be placed in the individual’s employee file.
This documentation serves as a reminder of what was said and will be used for
reference should further disciplinary actions be necessary. Verbal warnings about a
more serious event should be done is a private setting.
Written Warnings
A written warning is administered to document misconduct when either verbal

warnings have proven insufficient or when a serious policy violation has occurred.
Written warnings are reviewed with the employee and are signed by the employee
as acknowledgment that the warning was read and understood. Refusal to sign a
written warning does not invalidate it. The documentation should be placed in the
individual’s employee file. This documentation serves as a reminder of what was said
and will be used for reference should further disciplinary actions be necessary.
Written warnings should be given as part of a private face to face meeting.
Suspension Without Pay
A suspension without pay is a more serious disciplinary step that occurs when either:

1) An employee is alleged to have committed a serious violation of Company

policy and is under consideration for termination of employment.
2) An employee has received previous counseling or warnings but has failed to
correct or attain performance levels necessary for them to retain their
employment.
A suspension is the opportunity for management to thoroughly examine and evaluate

all facts and circumstances surrounding the employee’s performance and for the
suspended employee to present any facts or other information that management
should consider. An unpaid suspension is normally for a period of between three (3)
and five (5) days in length and may be extended if further time for investigation is
required. An employee who is being suspended must be explained why the action is
being taken and must have the opportunity to respond, preferably in writing.
Suspensions, as stated above, are serious and may result, after an investigation of
the facts, in a decision to terminate employment. The period during a suspension is
a time for the suspended employee to present any facts or circumstances they feel
are important in the investigation of the issues.
An employee’s return to ongoing employment from suspension is not guaranteed. If,

after an investigation, it is determined the employee did not violate the rules of
conduct that resulted in their suspension, they will be reinstated and paid for the time
they would have worked during the suspension. Additionally, the investigation may
result in a decision by management that the violation(s), while serious, do not
warrant the employee’s termination from employment. In these cases, the employee
will be returned to work. Any decision to provide pay to the employee for
compensation they missed while on suspension will be made by management, based
upon the circumstances and severity of the violations, in management’s sole
discretion.
Termination of Employment
Termination of employment can result when an employee fails to correct ongoing

performance problems or if they violate rules of conduct, which the Company deems
serious enough to warrant a termination.
Depending on local laws, management may not be required to use any disciplinary
actions prior to the termination of an employee. However, it is recommended that
the manager, when possible uses one or all the lesser actions. You reserve the right
to select any one of these actions, or steps, at any time, as deemed appropriate. The
nature of the disciplinary actions you elect to take will depend upon the conduct of
the employee and all circumstances that you determine as relevant. If possible, have
a discussion with SearchPath HQ prior to the termination.
If you have made the decision to terminate an individual’s employment with your
company, following are recommendations for handling the termination meeting:
 Explain to the employee why their employment is being terminated.

 Provide the employee with a written letter explaining why they are being
terminated.
 Collect all office property (badges, keys, laptop, etc.).
 Explain when they will receive their final paycheck.
 Explain that reference requests will be only be handled by you.
After the meeting, it is recommended that you change locks, passwords, voicemail,
email, and database registration that the person had access to. Also, meet with your
team to explain the situation and gauge morale.
Finally, here are a handful of tips for managers who must discipline employees:
 It is not uncommon for employees to respond emotionally to discipline. They may

react with anger, quick agreement, or silence. If they respond with anger, the
manager should try to remain calm and listen. He or she then must try to help
the employee see the situation objectively.
 When an employee quickly agrees with the manager, it may be to get the session
over with more quickly. In this case, the manager can move away from the
problem and focus immediately on a solution.
 If the employee is silent, it may be because he or she is hiding anger or fear.
Managers facing silence should take a non-threatening but direct approach. They
can explain succinctly the problem and then ask the employee an open-ended
question.
 Don’t discuss the discipline session with other employees. It could be a violation
of the employee’s privacy rights and you will lose credibility with employees if you
talk about things that should be confidential.
 If an employee complains of harassment, it may be necessary to consult a lawyer.
 If a discipline session results in improved employee performance, don’t hesitate
to congratulate the employee on his or her success. And congratulate yourself on
your success.
Creating an Exceptional Culture

Training and motivation can only go so far. At the end of the day, what will make
the difference is the culture of your office. Below is a list of simple ways to create a
valuable business culture:
1. Have clear goals and values and live by them.

2. Communicate with your employees.
3. Make each employee feel like they are part of the team. Ask for the
employees’ input on a matter and get their involvement.

4. Show appreciation and publicly recognize achievement (employee of the

month club, plaques, day off, come in late, leave early).
5. Catch your people doing good and recognize it immediately. Demand
excellence and set minimum performance expectations.
6. Make production competitive and visible (call accounting / production
meetings, ring a bell for placements, hot sheet meetings, activity total
boards).
7. Run contest to build excitement within the office and create desired
behaviors and outcomes. Successful contests use realistic, achievable goals,
are limited to a short period of time, have desirable prizes, link rewards to
performance, and have uncomplicated rules.
8. Have fun! Make your office a special place to work (i.e. yearly picnic or team
meeting away from the office).

SearchPath Operations Manual Accounting
Finance and Accounting

Introduction
This section will assist you with the financial operation of your office, no matter
your accounting knowledge level. This section will help provide a solid
foundation of basic accounting to assist in maintaining your financial operation.
SearchPath recommends you purchase QuickBooks (www.turbotax.ca) and set
it up to assist you with your internal accounting and reporting. Whether you
use QuickBooks or any other accounting system, basic accounting knowledge
is essential. All of the examples that are discussed in the chapter are based
on a “Cash Basis” accounting system. Also, this section briefly discusses is the
“Accrual Basis” accounting system. Any accounting systems should be
discussed with your accountant or tax advisor.
The result of this section of the SearchPath Operations Manual will be to set
up your accounting system and processes effectively so you can effectively and
efficiently manage the finances of your business and complete your reporting
to corporate and for your tax returns. This one-time investment to set up your
accounting will not only help manage your finances, it will provide a solid
foundation for when your business takes off and activity increases.
The sections in this chapter will take you from basic accounting principles
necessary to run your office to the utilization of QuickBooks. In addition, this
section will review each report required of you in both a manual form and using
QuickBooks.
Should you have any questions, please feel free to contact the Franchise
Operations department at Corporate. Our goal is to keep the accounting
process simple, so the majority of your time is spent on recruiting and other
revenue producing activities.
Obtaining an Accountant
Engagement of an outside accountant, specializing in tax preparation, is
recommended before you start your business, or shortly thereafter. Not only
will this person be an excellent resource for your financial and tax questions,
he or she will be a resource to assist you with your start up activities (i.e.
incorporating your business). The use of an accountant for the clerical, day-
to-day, bookkeeping is not necessary and should be done in-house.
Here are some guidelines to help you choose a suitable accountant:

1) Ask for recommendations from other businesses such as your banker,

attorney, and/or chamber of commerce.
2) Research the candidate for qualifications in taxation and overall
integrity.
3) Meet with each candidate to judge compatibility and experience.
4) Compare the fees for each candidate. Lower fees might not be the best
deal for the services provided. Make sure the services that are offered
match what your office needs and the fees for the services are
reasonable. In addition, don’t make your decision based on the name
of the firm, as some nationally known firms might have inflated fees.
Business Numbers (BN)

The BN is an employer's account number for the collection and reporting of
taxes withheld and wages paid to the employees. An BN is a nine-digit number
that takes the form: 12-3456789.
Employers must apply for and obtain a federal Business Number from the
Canada Revenue Agency. To get an BN, complete and submit application RC-
1 to the CRA We suggest that you do this before you open for business so that
you will have it ready when the first taxes must be deposited. You may apply
for an BN in various ways:
Apply by Fax
Taxpayers can fax the completed RC1 form application to the appropriate fax
number after ensuring that the Form RC1 contains all of the required
information. If it is determined that the entity needs a new BN, one will be
assigned using the appropriate procedures for the entity type.
Apply by Mail
The processing timeframe for an BN application received by mail is four weeks.
Ensure that the Form RC1 contains all of the required information.. If it is
determined that the entity needs a new BN, one will be assigned using the
appropriate procedures for the entity type and mailed to the taxpayer. Find
out where to mail Form SS-4 on the Where to File Your Taxes (for Form SS-
4) page.
Please visit https://www.canada.ca/en/revenue-

agency/services/tax/businesses/topics/payroll/completing-filing-information-
returns/t4a-information-payers.html if you need additional information about
employer identification numbers.

Province and Local Identification Numbers

In addition to the Canadian Business Number (BN) you'll need to obtain, you
may also need to secure identification numbers or account numbers from the
various province and local taxing jurisdictions to which you will be reporting,
depositing, and paying taxes. In many provinces, the federal BN also used for
provincial tax reporting purposes.
You, the employer, must register for identification or account numbers for use
in income tax reporting and in provincial tax and wage reporting. Call your
province department of revenue to find out how to get a number or allow your
accountant to advise you of the requirements and process.
Tax (HST / GST / PST)

Being a service organization, you have sales tax (GST/HST) you will need to
account for. Please contact your tax advisor for information on this. In
addition, you may use the following websites for reference:
 CRA - Canada Revenue Agency
For SearchPath® Global reporting purposes, taxes are not considered income.
However, you will need to know how to handle it. When invoicing, enter the
tax as a separate line item and consider the income as “Other Income.” When
you receive the tax bill from the government, contact your accountant on how
to handle it. In QuickBooks, an item will have to be created for tax in the item
list and the appropriate clients flagged. When an invoice is created, a second
line item will need to be added for the appropriate tax.

Invoicing and Collections

You are responsible for your own invoicing and collections. Your royalty
percentage and any other such fee should be transferred to SearchPath by the
10th of the following month.
SearchPath strongly recommends that you purchase QuickBooks. QuickBooks

is made by Intuit and is the most commonly used small-business accounting
and management software. There is a specific Canadian edition. SearchPath
will provide the standard accountancy forms for a recruiting firm with
downloads and instructions.
When invoicing a client, it is important that the following be on each invoice:
1. Client’s name and location

2. Name of candidate placed
3. Title of the position
4. Start date
5. Name of the consultant who placed the candidate with the client
6. Fee for services, appropriate province sales tax (if applicable), and
total amount invoiced
7. Invoice Terms and Guarantee (Terms and Conditions are at the sole
discretion of the SearchPath Franchise. The terms and conditions
should be stated during all calls with the hiring authority and should be
stated as such on the invoice. For example: “SearchPath will replace
the placed candidate within 90 days free of charge from the start date
if this invoice is paid within 30 days.”
SearchPath International encourages each franchise to be proactive once an

invoice is issued to a client to ensure timely payment. If the situation arises
that a payment is late, SearchPath recommends that the franchise calls the
client’s accounts payable department to seek payment. It is also recommended
that you inform your hiring authority. If after 90 days from due date you still
have not resolved the issue, contact your attorney and request that a
collections letter be sent on your behalf requesting the payment of agreed
upon dollars.
SearchPath International recommends that once an invoice is paid, the check

is deposited that day into a business account. Wait 5 days to ensure the check
clears. Once the check clears, you can disburse appropriate amounts to
employees based on established pay periods.
You are responsible for submitting a report (Form 10) of your month’s activities
as well as copies of all invoices issued by the 10th of the following month.

Accrual vs. Cash Accounting Systems

When you are setting up your accounting system, you will need to choose
between two main methods of accounting, cash or accrual. There are other
methods that are seldom used but are not discussed in this manual.
The CRA requires most business to use the Accrual method when filing your
taxes especially the HST. However, some businesses are allowed to use the
simpler cash approach. Check with your accountant or tax advisor to see which
method is right for you. QuickBooks supports both methods.
Accrual Basis
The income and expenses are recorded when they incur, no matter when you
might receive payment or pay the expense. The key advantage of the accrual
method is that it paints an accurate picture of your cash flow. It also makes
it easier to map out trends.
To illustrate this type of accounting, we will use the same examples as before.
A placement was made for $20,000 in May, but the client does not pay in May.
You would record the revenue in May and since you did not receive a payment
for the placement, an entry into Accounts Receivable (A/R) will be made. Once
the invoice is paid, you would make an entry to take the amount out of A/R.
This might take months, and you have already recorded the revenue. If this
carried over to a new year, you would have to report the revenue and pay
taxes on it, even though you did not receive the payment. With regards to the
expenses, the same concept is used. When an expense is incurred (you
purchased something with a credit card), an entry into the appropriate liability
and another entry for the expense will be made. Once the bill is paid, an entry
will be made to remove the liability.
Cash Basis
Cash basis accounting is the simplest method as income and expenses are
recorded as they occur. This means you record any expense or income in the
period money changes hands. It does not consider when an expense or
revenue is incurred.
For example, you received $20,000 for a placement fee in May. This fee would
be recorded in your system as income in May. If you paid a credit card bill for
$5,000 in May, the expense would be recorded in May, not when you
purchased the items with the credit card. The reason being is that no money
changed hands when you paid for the item with the credit card. Money
changed hands when you paid your credit card bill.

Record Keeping
No matter how you decide to keep your accounting information, there are a
few statements and journals you will need to be familiar with.
Journals
1) Cash Receipts Journal
2) Cash Payment Journal
3) Sales Journal
4) Payroll Journal
Statements / Reports
1) Income & Expense
2) Balance Sheet
3) Accounts Receivable Trial Balance
4) Accounts Payable Trial Balance
These reports and journals will be very useful in keeping track of your income
and expenses, which will help in your budgeting and forecasting. Cash-flow is
very important to any company, especially a new company, and these reports
allow you to monitor, plan, and forecast. Each of these journals and
statements are part of the QuickBooks program.
Cash Receipts Journal

The cash receipts journal is used to record your income. Most of your income
will be from placements, but you might have other sources such as refunds
and interest. This journal may also be used as part of your monthly reporting
package, but only the revenue from SearchPath activities, as defined in your
franchise agreement, are required to be reported.
Cash Payment Journal

This journal is used to keep track of payments pay for bills, supplies, and other
expenses. When entering information into this journal, all payments are
categorized into expense accounts from the general ledger, which is also
known as your chart of accounts. This journal will assist in completing the
expense section of the income and expense statement.
Please note that payroll expenses are not included with the cash payment
journal due to special attention needed for these transactions.
Sales Journal
This journal is used to record all invoices issued and adjustments made to
active invoices. This journal is helpful for budgeting and accounts receivable

collections. Each entry should be a separate transaction. This journal may also
be used as part of your monthly reporting package.
Since you will be using a cash basis system, the monthly total of the sales
journal is not considered part of your income until you receive payment.
Payroll Journal
This journal is used to keep track of all payroll related activity. This would
include gross pay, payroll taxes, healthcare, and other payroll deductions.
More information on payroll issues can be found in the Payroll section of this
handbook.
Income and Expense Statement

This statement, also known as a Profit and Loss (P&L) statement, provides you
with a quick view of your financial results for a given time period. QuickBooks
is equipped to utilize this report in many different variations and combinations
of these variations:
 specific period
 year-to-date
 percentages of income
 compared with your budget (once this information is entered)
This statement is required by corporate on a quarterly basis and should be

submitted with your reporting package for the months of March, June,
September and December.
Balance Sheet
This statement shows your financial position as of a given date. The
information included is assets, liabilities, and owners’ equity. This is an
important statement to be familiar with, even though corporate does not
require you to submit it. The balance sheet is important when presenting your
finances to your accountant, as it is used for tax preparation.
Accounts Receivable Trial Balance

The AR Trial Balance shows what invoices are outstanding as of a certain date.
Many companies use the “Aged” version of this statement which tells the length
of time each invoice is outstanding. Once an invoice is generated and sent to
the client, the invoice information gets placed on the trial balance. As payment
is received, the invoice comes off the trial balance. As time goes on, this
statement will be very useful in your collection efforts. QuickBooks provides
many version of this statement.

Accounts Payable Trial Balance

Your AP trial balance includes all invoices and bills (also known as vendor
liabilities) you have receive and not yet paid as of a certain date. If you have
received and approved to pay an invoice, it will show up on this report until
payment is made. This report is a good budgeting tool as it shows all of your
cash outflows. This statement will also assist in preventing unnecessary
expenses such as late fees and interest.
Internal Controls
As a business owner, you will need to set-up a system of internal controls to
help safeguard your finances. This section will highlight some examples and
suggestions for internal controls to instill in your office. Your accountant will
play an important role in your internal controls, checking your overall financial
picture on a regular basis.
One of the largest controls is to limit access to the checkbook; checks, cash
receipts, petty cash, and invoicing to only authorized personnel.
Checks/Checkbook/ATM/Bank Cards
 Limit access and the number of signers on your bank account to yourself
and any partners you may have.
 Administrative staff may have access to blank checks, or bank cards but
should not have signature privileges or know the ATM pin or web
password.
 Make sure voided checks are properly defaced and accounted for.
 Balance your checkbook and bank statement regularly (at least

monthly). This will greatly help in uncovering any discrepancies.
Cash Receipts
 Properly endorse checks with “For Deposit Only.” A rubber stamp with
“For Deposit Only,” your bank name, account number, and your
company name is advisable.
 Deposit checks as they are received. Securely store all checks not
deposited.

 Update the AR Trial Balance regularly, at the time of receipt is

recommended.
 Report any revenue that is paid to you directly to SearchPath HQ upon

receipt.
Invoicing
 Make sure all adjustments and cancellations are notated properly and
completely (more on this later in this section).
Accounts Receivable
 Make sure all records are up-to-date and detailed. An idea for this is to
create a file with copies of each invoice and notate any contact with the
client on the invoice (the back of the invoice is recommended in case a
copy would need to be sent to client).
 Any and all adjustments and write-offs should be approved by the owner
or other authorized person.
Petty Cash
 Limit the amount of money used for petty cash. A common limit for a
small business is $200 in cash.
 All petty cash transactions should have a receipt attached with a

description of what the money was used for. An authorization for each
transaction is also advisable.
 Replenishment to petty cash should be authorized by the

owner/manager.
Bank Card Usage

 Limit bank card use to business related expenses.
 All bank card transactions should have a receipt attached with a

description of what the money was used for and if used for
entertainment the names of the people involved. Prior authorization
for each transaction is advisable.

 Bank cards should only be kept by the owner/manager.
SearchPath Required Reporting

Your franchise agreement requires you to send a report to corporate on a
monthly basis. This report will also assist you to regularly keep track of your
income and expenses and provide you with information for your tax returns.
It is recommended that you provide your accountant with a copy of the Monthly
Report spreadsheet at the beginning of January each year.
Many of these reports to corporate can be completed in QuickBooks, but some

can only be done using the Monthly Report spreadsheet, both of which are
discussed in detail in this section.
All of your reports should reflect the amounts in Canadian dollars except where
noted. For ease of conversion there is a link to the current conversion rate at
the bottom of Form 10 so that you can convert your royalty payment from CAD
to USD. All funds should be transferred via ACH to SearchPath in US Dollars
at the same time you submit your report.
The Monthly Report is due to SearchPath via email by the 10th day for the
previous months’ activity. A copy of any invoices issued during the month are
to be submitted with the Monthly Report.
The Monthly Report is a single spreadsheet that covers multiple report forms
as listed below. It is important to note that regardless of the accounting
method you will use in your offices the reports you submit monthly deal with
events in the calendar month.
 Form 10 – Monthly Summary of Net Cash-In and Billing Information (not

in QuickBooks)
 Form 11 – Additional Invoices Issued
 Form 12 – Additional Cash Receipts
 Form 13 – Adjustments, Refunds and Splits Paid Summary
 Form 14 – Invoice Cancellation or Adjustment Detail (not in QuickBooks)
In addition, SearchPath requires submittal of a P&L each quarter. Each of

these forms is discussed in full in the following pages, in both a manual
example and a QuickBooks example.
Please note that the numbers in parenthesis inserted into the forms are there
for your reference so you can see how all of the information is cross referenced.

If there are any questions or issues with this, please contact SearchPath
Franchise Operations. In addition, if there is a question regarding your
package or your royalty payment, SearchPath will contact you directly.

Form 10: Monthly Summary of Net Cash-In and Billing

Information
Depending on the activity level of your office this Monthly Summary of Net Cash-In
and Billing Information report may be the only page you need to send in. As this is
not a standard report in QuickBooks you will need to consolidate the information
needed from multiple sources. Make sure you enter in both your franchise name and
the name of whoever prepared the report in the header. It will automatically fill in on
the other forms.
1st Section: Invoices issued during the month – This area is for a single line
listing of all invoices that your office generated. This section should include all of the
invoices including the ones where you are billing a split partner. When your office
generates more than 7 invoices, list the other invoices on the sheet found on the tab
F11 Invoices Issued. Make sure that the total fees shown on the F11 tab are correctly
reflected on line 24. The Total Gross Billings shown on line 26 is automatically
calculated as you add the invoice data. See Form 11 for the definition of each column.
2nd Section: Cash Collected during the month – This area is for a single line
listing of all revenue that your office received for the month. This section should
include all of the invoices including the ones where you were billing a split partner.
When your office generates more than 7 revenue items, list the other items on the
sheet found on the tab F12 Cash Receipts. Make sure that the total revenue shown on
the F12 tab are correctly reflected on line 38. The Total Cash Collected shown on
line 40 is automatically calculated as you add the revenue data. See Form 12 for the
definition of each column.
Line 44: Adjustments in the Month – This entry is a summary of the adjustments
on invoices where the amount of the fee is different from the original invoice or where
an invoice needed to be canceled. Each item should also have a Form 14 with the
detail information of the adjustment/cancellation. The amount shown on Line 44 is
automatically calculated as you add the adjustment summary information on Form 13.
3rd Section: Accounts Receivable – This area summarizes changes in overall

Accounts Receivable in your office. Line 49 automatically calculates the Net Change
in Account Receivables. (Gross Billings less Total Cash Collected plus or minus
Adjustments). You then have to enter in the End of Current Amount from last month’s
report on Line 52. Line 53 calculates your go forward Receivables.
4th Section: Net Cash in the Month – This area summarizes the amount of Net
Revenue your office had during the month. It draws from Line 40 Total Cash Collected
and adjusts for refunds, splits paid both inside and outside the SearchPath network
from Form 13. The Gross Receipts (Line 68) is the amount that royalties are calculated
against
5th Section: Due to SearchPath – This final section takes the Gross Receipts from
Line 68 and multiplies it by your Royalty rate (Line 73). If you have a Franchise Fee
obligation that is being repaid from production, put that percentage into Cell I74. The
total due SearchPath is calculated on Line 75. On Line 76, enter in the date and the

conversion rate (CAD to USD) on that day. The amount to send to SearchPath Global
will be in cell J77

Form 11: Additional Invoices Issued

While Form 10 has 7 lines for Invoices issued, there will be times that you need
show more than 7 invoices. Form 11 allows you to list an additional 32
invoices. The layout for both the invoices section of Form 10 and this form the
columns remains the same.
• Invoice Number is the control number assigned to each invoice.
Recurve will generate this number when processing your invoice
request. If you are generating any invoices, then a local invoice
number needs to run sequentially with any gaps explained.
• Split Partner is the person, if appropriate OUTSIDE of your office,
that assisted you on the placement.
• Title Placed should be the exact title of the person placed. This allows
us to generate a more accurate directory of what people in
SearchPath work on as well as to allow us to create collective
information reports.
• Client is the company that the person placed a candidate with.

Form 12: Additional Cash Receipts
The Monthly Listing of Invoice Adjustments, Split Fees Paid and Refunds Paid
report provides a listing of the split fees and refunds paid and all adjustments
processed for the month. In QuickBooks, this report is split up into the
individual activities. Each entry (split, refund or adjustment) is a separate line
item on this form.

Form 13: Monthly Listing of Invoice Adjustments, Split

Fees Paid and Refunds Paid
The Monthly Listing of Invoice Adjustments, Split Fees Paid and Refunds Paid
report provides a listing of the split fees and refunds paid and all adjustments
processed for the month. In QuickBooks, this report is split up into the
individual activities. Each entry (split, refund or adjustment) is a separate line
item on this form.
 Column A should list who is receiving the adjustment or refund

 B should list the person whose placement it is
 C is the original invoice date
 D is the original invoice number
 E, F and G are the date of the adjustment, adjustment ID# and the
amount all of which are brought over from Form 14
 Refunds Paid – This situation may occur that you will need to refund a
placement in whole or part. On this form, record only those refunds
that you have paid to clients. Refunds are processed when a
candidate quits or is fired before the guarantee period lapses. Any
refund your office receives should be entered as other cash in. The
total of this column is entered on line 3 of Form 10.
 Split Fees Paid – Enter the information for each split fee that was paid
in this column. This is to help keep track of any placement you have
made where you have invoiced the client and collected the fee. Your
partner office should bill you for their portion of the fee. This column
does not include those placements where you are not the billing office
to the client. In this situation, the split fee is handled just like a
regular placement. The total of this column is placed on line 2 of Form
10.

Form 14: Invoice Adjustment or Cancellation Detail /

Approval
Form 14 is the detail listing of all adjustments or cancellations processed for the
month. In QuickBooks, this report is split up into the individual activities. Each
adjustment or cancelation must be reported on a separate Form 14
 Line 8 should have a unique number for the adjustment and the date
processed which will need to be copied over to Form 13 along with the
amount on line 30.
 Line 10 should list who is receiving the adjustment or refund
 Line 11 should list the candidate who was placed
 Line 13 should list the person whose placement it is
 Line 14 is the original invoice number and date
 Lines 20 – 24 are the type of adjustment
 Lines 25 and 26 are for a type not listed
 Line 28 is the amount of the original fee
 Line 29 is the amount of the adjusted fee
 Line 30 is the actual adjustment amount which will need to be copied to Form
13 along with the adjustment number and date from line 8. This should be
the difference between lines 28 and 29.
 Line 34 should list the invoice number, date, and amount if the placement is
cancelled and a new invoice generated
 Lines 38 and 39 should list any information about if the invoice was placed
with a 3rd party collection firm
 Lines 43 to 51 should be used to explain the process followed
 Lines 53 should show the signature of the office manager and the date
signed
You must submit a separate Form 14 for each adjustment or cancellation.


Income and Expense Report

The Income and Expense Report is created as a cash basis income statement and
can be run by accessing the Memorized Report List in QuickBooks or utilizing the
format enclosed in this manual. This report summarizes your income activity and
related adjustments and all of your expenses. SearchPath has programmed
QuickBooks with a standard chart of accounts for you to use in recording all of your
cash receipt, adjustment, and expense transactions.
To help you understand these accounts better, there is a description of each of the
accounts.
 Professional Fees – your net cash in for your search business

 Other Revenue (subject to royalties) – any other SearchPath income that does
not come from invoices
Net Cash In Subtotal (subject to royalties) – the total of the Search and
Other Revenue that are the basis for royalties
 Other Income (not subject to royalties) – any non-SearchPath income
Gross Location Revenue – the total of all of the revenue for this location
People Costs – Section outlining all people costs
 Search Consultants Commissions – All gross commissions paid to Search
Consultants
 Search Consultants Draws and Salaries – All draws and salaries paid to Search
Consultants
 Fulfillment Associates Commissions – All gross commissions paid to Fulfillment
Associates
 Fulfillment Associates Draws, and Salaries – All draws, and salaries paid to
Fulfillment Associates
 Office payroll (incl. Researchers) -- gross wages paid to administrative and
research staff
 Incentives– all payments made for bonuses and contests for all employees
 401K Match – employer match to 401K
 Insurance Expense– employer portion only of Insurance paid
 Payroll taxes – Federal – employer portion only of federal payroll taxes paid
 Payroll taxes – Province – employer portion only of province payroll taxes paid
 Payroll taxes – Other – employer portion only of all other payroll taxes paid
 Unemployment Insurance Expense– employer portion only of Unemployment
Insurance paid
Subtotal People Costs – total of all employee expenses

Fixed Expenses – Section for Facility Expenses that normally don’t vary from
month to month
 Voice and Internet – Total of communication expenses
 Rent and Utilities – Total of office space expenses
 Insurance– General business insurance expense including liability
 Capital Purchase / Depreciation– Equipment costs not including leases
 Equipment – Lease and Rental – lease and rental for large items, i.e. furniture
Subtotal Fixed Expenses – total of fixed facilities expenses
Variable Expenses - Section for expenses that vary from month to month
 Software and Maintenance – all software IT tech expenses, software support
and equipment expenses
 Meeting Accrual– Money set aside to cover annual meeting expense including
trade shows
 Miscellaneous Taxes, – sales tax, business taxes etc. not calculated on profits
(tax advisor is a good resource for this)
 Office Supplies and Expenses – paper, pens, and other misc. office items
 Professional Services – fees for accountant, lawyers and other professionals,
other than technology
 Dues and subscription – trade magazines, memberships and publications
including online services
 Travel – all client related travel expenses, not including meals and other
entertainment expenses. May include parking, car lease, gas, flight.
 Entertainment – All client related entertainment expenses, may include meals,
tickets for venues, golf green fees.
 Training– training classes and materials for employees
 Miscellaneous Expenses – all other expenses and repairs that can’t be
categorized above
Subtotal Variable Expenses – total of variable expenses
Total Operating Expenses – total of people, fixed and variable expenses
Gross Profit – Location Revenue minus Total Operating Expense – This
doesn’t include Manager’s compensation, Royalties or Debt Service.
 Owners/Manager Compensation – to help keep all offices on the same level,
the owner/manager compensation is separated from regular payroll
information on this report. This information is very important to Corporate
and for tax reporting, but can be misleading if included with the office payroll
information.

 Royalties – Royalties paid to corporate for your franchise fee. Calculated at

the agreed upon percentage as stated in your franchise agreement.
 Debt Service – Scheduled debt payments
Net Profit before Taxes – Gross Profit less Manager’s Compensation,
Royalties and Debt Service does not include Taxes calculated on profits.


Payroll and Other Human Resources Issues

As you are well aware of, the function of Human Resources and Payroll is the basis
for any business. However, we do recommend that you outsource your payroll to
limit the time spent on this process and to limit the liability taken on when done in-
house. With this being said, there are a few things you should be aware of.
 Employment Agreements – This agreement should document the terms of

employment and compensation plans and should be filled out and signed by
each employee at the time of hire. An alternative to the employment
agreement is an offer letter that is signed by both the hiring manager and the
employee.
 Exemption classification- this refers to whether an employee is classified as
exempt or non-exempt. Due to recent and continuous changes, SearchPath
recommends you review the Canada Services website at canada.ca
 Commission plan/calculations- a set commission plan should be determined
before an employee is hired and an accurate tracking process is adopted.
QuickBooks unfortunately is not equipped to handle this task.
 Payroll – have a system set up to calculate gross pay and net pay to submit to
your payroll service. QuickBooks has a payroll function that will keep track of
your gross and net pay, along with all of the payroll expenses. However, this
will not be discussed in this section.
Outsourcing Payroll
If you have hired an employee, you have to devise a system for paying that person.
There are multiple solutions to consider. You can use a traditional payroll service such
as PayChex or ADP, or you may want to consider a Professional Employer
Organization (PEO). A PEO will not only take care of employee payroll, but also acts
as the employer of record. SearchPath recommends that you conduct your due
diligence and identify a service provider that meets your needs.
There are many national and regional payroll companies for you to choose from. By
outsourcing your payroll function, you are able to devote more time to your revenue
producing activities. The national companies have various options for their services
including payroll processing only and payroll plus tax withholding reporting. If you
select the payroll processing only, it will be a lower fee, but you will be responsible
for all of your own withholding reports and tax payments to the government, including
any fees and penalties if there is an error or you are delinquent. If you opt for the
payroll plus tax withholding reporting, the payroll service is responsible for all the
payroll tax reporting and payments to the federal government. If the service is
delinquent or there is an error, all you are responsible for is the extra tax payment,
the service is responsible for the fees and penalties.

Currently SearchPath has negotiated discounts with some of the national companies
on your behalf. Please contact Franchise Operations for a listing of these companies.
Employment and Wage and Hour Law Considerations

The Federal Wage Labor Standards govern your employment and compensation
practices. To learn more about this, please go to Labour Laws
Some basic guidelines from these regulations are identified below:
 Minimum Wage – Each employee must be paid at least minimum wage each
payroll period, no matter if commissions are due or not. The federal and province
minimum wage is increased from time to time, so refer to the websites above for
clarification on what the current minimum wage is for you. The reason for this is
some provinces have higher minimum wages set. If this is the case, you must
use your province’s minimum wage rather than the federal minimum wage.
Minimum wage by province
 Overtime pay – Overtime pay is at 1.5 times the employee’s normal hourly wage.
The federal regulations province that anything over 40 hrs. in a calendar week is
overtime, however, some provinces stipulate that anything over 8 hours in a shift
is overtime. Refer to the websites mentioned earlier for clarification on your
province’s status.
 Documentation – The following list represents the minimum record keeping that
should be maintained to limit exposure. All employee files are highly confidential
and only authorized personnel should have access.
o A signed employment agreement should be kept in each employee file.
o A policy and procedures document/manual should be reviewed with each
employee at the time of hire. In addition, the exempt/non-exempt policy,
status, and process of moving from non-exempt to exempt should be
discussed at the time of hire.
o Any employee who is eligible for overtime is recommended that a time
sheet, which would be approved and kept permanently in their file, be filled
out each payroll period. This process will assist in disputing future claims
by disgruntled employees, should it happen.
o Compensation records should be kept for each employee. It is a good idea
to keep these records separate from the employee file to limit the exposure
to anyone not authorized to view it.
o With regards to the employee files, there is information available in these
files that should not be kept together. Here are a couple of guidelines:
 Keep required records in a separate location from the employee file,
i.e. a binder kept in a separate file drawer.

 Keep all health insurance and retirement plan information separate

from the main employee file, as this information should not be used
for performance evaluation purposes.
Governmental laws and regulations

1. Canada.ca – Office site for the Department of Labor
Other sites of importance

1. www.shrm.com – official website for the Society of Human Resource
Management.
2. www.payscale.com – used for salary search
Commission and Bonus Plans

SearchPath realizes that each office has a different preference for how the
commission program is set up. We have provided a couple of examples of plans that
some of our offices are utilizing. These examples are included in the Compensating
Employees section of this manual.

SearchPath Non-Compliance Action Process

As a Franchisor of Human Capital Solutions Companies, SearchPath is dependent
upon Royalty Income and Net Proceeds from Franchise Sales. After being awarded
a SearchPath Franchise, you the SearchPath Franchisee have certain responsibilities
as outlined in the Franchise Agreement (sections three, four, seven, fifteen and
sixteen). For exact wording please refer to your copy of your Franchise Agreement,
as a reference point we have added links at the end of this document to both the
current language of those sections and some additional articles related to this
process.
• In Section Three, the nature, amount and payment process of the Franchise Fee,
Royalties, Marketing Fee and Minimum Royalty are all outlined. Regardless of the
amount of fees due, these fees must be paid according to the process outlined in this
section. The section also allows for interest to be charged on any past due amounts.
• In Section Four, the responsibility for the Franchisee to maintain records, submit
timely reports is specified. The Section goes on to specify that the Franchisor may
inspect, examine and audit in order to insure compliance. In addition, the exact
nature of the reports is specified in the Operations Manual.
• Section Seven explains the other obligations that the Franchisee has in order to
remain in good standing with SearchPath.
• Section Fifteen clarifies what qualifies as a breach and what cures, remedies and
penalties exist.
• Section Sixteen describes the Rights of both parties after a franchise is either
terminated or not renewed.
In brief, as a Franchisee you are responsible for, but not limited to, the following:
1. Ensure that SearchPath Corporate has accurate contact information
(phone, email and physical mailing address)
2. Pay your Franchise Fee, Royalties and Marketing Fees in
accordance with the terms outlined in section 3 and any associated
document covering a note if issued.
3. Provide timely and true reports such as:
a. Weekly activity (at a minimum any placements or cash-in)
b. Monthly placements and cash-in (Form 10)
c. Quarterly P&L reports (Income and Expense Report or similar
QuickBooks format)
d. Monthly Invoice activity reports including clarification if there
is a break in consecutive invoice numbers. (Forms 11, 13,15)
e. Annual P&L report (Income and Expense Report or similar
format)
4. Abide by the rules governing interoffice split business, including
paying your split partner in a timely manner.
Failure to meet any of these responsibilities creates a breach.

Easiest way to avoid a breach situation is to of course pay and report everything in
accordance with the agreements. Sometimes that just isn’t possible. If you know
that something is going to keep you from doing that (i.e. traveling out of the country,
a financial emergency, a physical disaster, etc.) pick up the phone and call a member
of the SearchPath Leadership team. We can’t help or create a program to help if we
aren’t aware of what is going on.
In the event of a breach, you will be contacted first by phone by a member of the
Leadership Team to attempt to remedy. If you cannot be reached by the member of
the Leadership Team, you will receive a call by either the Sr. VP - Operations or the
VP- Field Services. If they cannot reach you by phone, they will email you to set up
a conversation. If they do not receive a return call or email within 5 days of the
email, you will be considered in breach.
Once in breach you will receive a document via email with a read receipt request as
well as a signature required physical copy outlining the following:
1. The cause of the breach
2. The attempts made to contact you
3. What remedies are available to you and their timeframes
4. What impact a failure to remedy will have.
While in breach the following will occur:

1. Immediately:
a. A financial audit will be arranged to verify your accounts and
arrearages
b. Your ability to participate in SearchPath functions and programs will
be suspended. These programs include:
i. SearchPath Discount Programs
ii. SearchPath University
iii. SearchPath Monthly Franchisee Calls
iv. SearchPath Shared Network Referral Program.
v. Rankings and other Recognition Programs
2. After 15 days
a. A notification of your suspension will be sent to all active
SearchPath Franchisees and Staff
b. Your account may be turned over to a third-party collections firm,
which may impact public credit reporting records
In the event that your breach is cured:

1. Your access to SearchPath programs, services, discounts, functions will be
reactivated.
2. A notification of your return to compliance, if necessary, will be sent.

3. You will be required to either utilize the SearchPath invoicing services or

set up an EFT process that transfers royalties, marketing fees and any
appropriate franchise fee payment.
In the event that your franchise should be terminated:

1. Your account will be turned over to a third-party collections firm.
2. Any notes for either Franchise Fee or other funds owed to SearchPath will
become immediately due
3. Any uncollected revenue from either Franchise referrals or Royalties from
such referrals will be forfeited.
4. At SearchPath’s discretion, any uncollected fee revenue may be held to
offset any arrearages.
5. Your access to SearchPath electronic media (email, SearchPath hosted
Web Sites VoIP, Intranet) and services will be terminated.
6. Your access to SearchPath vendor relations and any pricing arrangements
will be terminated.
7. A notification of your termination will be sent to all active SearchPath
Owners and Staff as well as all SearchPath Vendors.
8. The additional rights and responsibilities under section sixteen of the
Franchise Agreement will be enforced.
9. You may be subject to additional legal action if an audit identifies that a
fraud was perpetrated.
It is in everyone’s best interest to avoid Franchise Termination. The best and simplest
way to avoid that is to stay in compliance. If for some reason you are unable to stay
in compliance immediately contact the SearchPath Leadership team to discuss
alternatives to termination, such as the Economic Recovery Program.

SearchPath Operations Manual Insurance
Insurance Recommendations
Business Insurance
Each SearchPath franchise owner must acquire and maintain all insurance deemed
necessary for the operation of their business for the term of their franchise
agreement. Insurance must be acquired and maintained at the franchise owner’s own
expense. This insurance must be acceptable to SearchPath and SearchPath must be
listed as an additional insured, except as to such policies in which only the employer
of record may be named. The Insurance coverage recommendations can be found
in Section 14 of your Franchise Agreement.
Employee Benefits and Insurances

It is at the sole discretion of the Franchise Owner to offer benefits to its employees.
It is recommended to offer a retirement plan such as a RRSP. A RRSP savings and
retirement plan is an excellent way for employees to prepare for their futures.
Franchise Owners are encouraged to identify a potential benefits provider based on
the particular needs and budget of the franchise.
Workers' Compensation is a required insurance paid entirely by the franchise owner

out of revenues, to protect any employee from lost wages and medical expenses that
result from a work-related injury. If an employee is injured on the job, they should
inform management immediately. Check your local WCB for details.

SearchPath Operations Manual Marketing
Marketing Your Business

Networking
The most productive medium for marketing your business will be networking with
individuals who will become clients or candidates, or who can be information sources
and referral providers. Therefore, each person should state their name and office
name in the introduction of their call to develop name recognition. Additionally, each
person should be prepared to answer questions about the services provided. A verbal
and text “commercial” of your organization and services should be well prepared and
practiced. It is recommended that each consultant prepare a profile of themselves
that will distinguish themselves from other search consultants. This profile should be
forwarded to SearchPath so it can be posted on the SearchPath website, used to
update their LinkedIn profile, saved as a PDF for electronic distribution, and practiced
for delivery over the telephone.
Internet / Social Media

The impact of the internet and social media is seen and felt every day. In the past
five years tools for leveling the playing field have grown explosively. More
importantly your web presence is used to “validate” your business. The most
important thing for you to do is to keep your information accurate and fresh. Old,
stale or outdated information can negatively impact your credibility. Fresh, engaging
information can point to you as an influencer in your niche. The other side of the
internet is that it can become a huge distraction. Use it in research and planning
time NOT during phone time.
SearchPath.com is our network website. The information about you and your
office always needs to be kept up to date. This includes images, searches that you
have recently done, testimonials from candidates and clients. Also make sure your
links to your social networking sites are active and that your links back to your profile
also works. To update your information please contact Support Services.
LinkedIn.com Currently LinkedIn is the #1 website for businesspeople to

interact. As with all web sites, this ranking is subject to change. Until then, your
LinkedIn profile is critical to confirming you as a real business.
Glassdoor.com Glassdoor is becoming the “first step” for candidates validating

companies. Take the time to create a company profile as part of confirming you as
a real business.
Both LinkedIn and Glassdoor also sell job postings.
Things to do that can raise your personal and office visibility. 1st have an up-to-date
professional picture of YOU on your profiles. It is best to use the same one across all
your profiles. People want to see you and that image represents your professional

personality having it be the same picture on multiple sites reinforces that. Keep your
title to the point, it’s not meant to be your summary, it is a way that the LinkedIn
search system filters and ranks on. The more garbage on your title the lower the
ranking on the search results screen. Use your summary to lay out who you are,
why they should talk to you and how to reach you. (word of caution, there are people
out there who troll sites like LinkedIn to gather email addresses to SPAM to). Use
images and other multimedia to liven up your page. “Publish” articles and slide decks
that show your knowledge of your niche. AND KEEP IT UPDATED! Like articles in
your network that you read even outside of LinkedIn. Most news outlets and sites
have a simple icon on every article to help you do that (TIP: Link your LinkedIn profile
to your Twitter account to double the exposure). Remember, everything you put in
your profile can help create a “bond” between you and the person reading it. Write
everything on your profile in the first person. In the Experience section, don’t put
general information about the company, put specific information about what you
accomplished there and how the company (and you) benefited.
Join groups that are in your niche including the SearchPath group. Participate in
discussions in your groups. Start discussions, respond to posts, connect to other
members. For more information about how to use your LinkedIn profile visit the
Training and Development section of the SearchPath Intranet.
Consider upgrading your LinkedIn membership to the Recruiter package. This can
only be bought via our LinkedIn representative. The advantages of the upgrade are
the ability to search the entire LinkedIn database, build projects and InMail people
you are not connected to. Within the Recruiter tool you can build form emails that
you can send to the people you identify that you don’t have a direct contact to. For
more information about this upgrade talk to Support Services.
Trade Publications / Professional and Social Associations

Just like LinkedIn groups, find and join associations that are related to your niche,
are about something you are passionate about. If you can be a member, you can get
on their website to search for people and to interact with the other members. Find
out if you can contribute to the content on the site. Most organizations would love
to have the content and it would be a big boost to your internet reputation. Be active
in your alumni associations.
The primary benefit of publication and association advertising is that it is targeted to

specific audiences. In addition, publication ads have a longer life than other media
because trade publications are often passed from one reader to the next. Becoming
a member of an association or peer group affords you the opportunity to network
with business professionals locally, or on a national basis.
Other Marketing Vehicles

A wide range of other, less-expensive advertising options exist for your franchise.
These include business stationary (business cards, pens, paper holders, coffee
mugs), and signage (flyers, posters, office signs). We recommend you research
these options and study alternatives prior to making a decision. Measure the results

of your advertising tools to ensure you are using the right tools to reach your
audience. For more information about how to use the internet to help market your
business contact the Support Services Team.

SearchPath Operations Manual Policy Recommendations
Policy Recommendations
Communicating Policies
Having policies means nothing unless employees know that the policies exist and
understand them clearly. Communicating your policies or standards is important not
only because it helps employees understand the rules, but documented
communication of those rules makes it easier to enforce them, if necessary. To ensure
that employees get the message about standards of conduct in your workplace, here
are some issues you need to consider:
 When to communicate work rules: you'll need to make sure employees are
aware of the rules before they have the chance to break them, and you'll want
to give periodic reminders as well. There are a few times when communicating
your standards of behavior or policies is natural:
1. Orientation for new hires. Giving employees the work rules at the outset
is the best way to make sure that they get off to a smooth start in your
business. If employees know what the rules are, they may be less likely to
break them.
2. Discipline. If an employee, new or established, breaks a rule, as a part of

any discipline or counseling process you might have, you may want to
consider going over your expectations or rules again to ensure that the
employee has an understanding of the rules. While the employee may have
known that there was a policy against whatever he or she did, it never hurts
to reinforce to the employee what your expectations are. Be sure to ask the
employee if he or she has any questions about the rule or policy. If you
choose to document this part of your discipline procedure, you might want
to ask the employee to sign a form that states that the employee has been
informed of the rules (either orally or in writing) and that the employee
understands them. That way, you can use this document to take more
severe action if the behavior continues in the future.
3. If an employee asks. Occasionally employees might be confused about

something or not be sure how they should handle a certain situation. Your
employees should be aware that they can ask for clarification of rules and
procedures when necessary.
4. If you change a rule or policy. If you change or add certain restrictions

to your standards of conduct, it's a good idea to let employees know
formally. Either make an announcement, send around a memo, or post
something on the bulletin board. Make sure that everyone knows what
acceptable behavior is at all times.

 Oral communication of work rules: communicating orally allows give and take
between you and the employees. However, it's hard to document a conversation
and be sure that you've come away from it with both parties in agreement. Oral
communication is usually best for very small businesses, where the employer and
employees need a lot of flexibility in dealing with each other.
 Written communication of work rules: giving employees your policies, rules,

and expectations in writing has several advantages — it allows you to document
that the employee was informed about the rules and, if you've written them
correctly, it's clear what you expect. However, remember that if the rule is in
writing, it will be very difficult to change. Employee handbooks are a way of
ensuring that all employees are aware of your rules; therefore, SearchPath offers
a sample basic Employee Handbook that each franchise owner can customize to
reflect the policies to enforce for their office.
Employee Policies
Pay Day
Franchise Owners should establish pay periods for all employees. It is recommended
that employees are paid bi-monthly, on the 15th or 30th of every month as it is easier
to calculate monies received and due. If a payday falls on a weekend or holiday,
employees should receive their paychecks on the last day before the weekend or
holiday, although the paychecks will most likely be dated on the regular pay period
date. Each paycheck should include regular earnings for normal work performed
through the end of the current payroll period. Additional hours and special weekend
pay may be paid in the following pay period.
Direct Deposits
Franchise Owners should offer to have employee paychecks deposited directly into
their bank accounts. Most payroll service companies will require approximately two
payroll periods for direct deposit to be set up. Once set up, employees will receive
an itemized statement of wages when the company makes direct deposits. Please
contact your payroll service company for more information about the availability, cost
and process for direct deposit.
Pay Advances
An option to consider is the availability of pay advances in the event of a personal
emergency. If offered, employees should submit a written request for a pay advance
to the franchise owner, indicating the nature of the emergency involved. It is the
franchise owner’s sole discretion whether a pay advance can be granted. For the
request to be considered, the employee should not be on any type of disciplinary
warning and must be performing their responsibilities at a satisfactory level.

Common Benefits
Canadian benefits as far as time off vary from province to province. You
need to ensure that your policies are in accordance with provincial
employment law.
Vacation / Sick / Personal Pay

SearchPath franchise owners should offer vacation, personal and sick time off with
pay for employees. The Employee Handbook outlines examples that can be altered
to reflect your selected policies. Earning these benefits and the nature of the benefits
(number of days, when they can be used, etc.) are regulated by your provincial
government.
Unused Vacation / Sick / Personal Time

Each SearchPath franchise owner must determine a policy for unused vacation, sick
or personal time. The Employee Handbook outlines an example that can be altered
to reflect your selected policy. Earning these benefits and the nature of the benefits
(number of days, when they can be used, etc.) are regulated by your provincial
government.
Holidays
Each SearchPath franchise owner must determine a policy for holidays. The
Employee Handbook outlines an example that can be altered to reflect your selected
policy.
Medical, Personal or Military Leave

SearchPath franchise owners must put in place a policy for medical, personal, and
military leave. The Employee Handbook outlines examples for each type of leave. It
is recommended that a franchise owner not edit the military leave policy outlined in
the Handbook due to federal regulations.
Family and Medical Leave

SearchPath franchise owners must put in place a policy for family and medical leave.
The Employee Handbook outlines the US FLMA policy. It is recommended that a
franchise owner edit the FMLA policy outlined in the Handbook to reflect provincial
law. Earning these benefits and the nature of the benefits (number of days, when
they can be used, etc.) are regulated by your provincial government.
Bereavement Leave
SearchPath franchise owners should assist, and support employees should they
experience the pain and grief the death of a loved one can bring. To provide the time
needed, employees should be granted bereavement leave in the event of the death

of an immediate family member. Immediate family is defined as; spouse [or a person
living with an employee who shares a similarly close relationship], father, mother,
grandparent, son, daughter, stepson or daughter, brother, sister, and any in-law
relationship of the same kind. Employees who use all of the allotted time should be
allowed to utilize vacation and sick/personal days. If those days are fully exhausted,
the employee should be able request to take leave without pay. Earning these
benefits and the nature of the benefits (number of days, when they can be used,
etc.) are regulated by your provincial government.
Jury Duty
SearchPath franchise owners should encourage employees to fulfill their civic
responsibilities by serving jury duty when called. Full-time employees should be
granted with up to five (5) days' time off with pay for jury duty, so long as proof of
service is provided. It is recommended that employees must show the jury duty
summons to their manager as soon as possible so that the manager may plan to
accommodate the employee’s absence.
Educational Assistance
SearchPath franchise owners should encourage employees to seek out ways to
educate themselves on a continuous basis. For example, a full-time employee with
one year of service and with acceptable performance ratings could apply for
acceptance in the franchise’s tuition reimbursement program. A program could
provide reimbursement of up to 50% of tuition and related costs (establish a calendar
year maximum) for career related course work at an accredited learning institute.
The employee must receive a grade of "C" or higher to receive reimbursement. The
employee must apply for and receive approval from the franchise owner prior to the
beginning of the course to receive reimbursement. Not all course work may be
approved, and preference is given to course work consistent with a career in the
staffing industry. The franchise owner should use his/her discretion in making that
determination.
Office Policies
Privacy
It is critical that you establish clear rules for your employees as it relates to an
expectation of privacy especially with devices used to communicate with candidates
and companies. Employees need to be made aware that there should be no
expectation of privacy when using company provided technology or accessing
technology while working. However, that practice needs to be balanced with the
need to protect personal data collected and stored in your systems. As the owner
you need to be aware for the protections governed by PIPEDA and the more globally
accepted GDPR.

Hours of Operations
As a SearchPath Franchise it is recommended that set hours of operation be instituted
for employees. A recommendation would be 8:30 AM until 5:30 PM. A lunch break
could then be from 12:00 PM until 1:00 PM.
Computer and Email Usage

Due to the nature of our business, there has been an increase in the use of electronic
forms of communication and information exchange. Employees have access to one
or more forms of electronic media and services (computers, e-mail, telephone, text
messaging, voicemail, e-fax, on-line services, the Internet.) This includes but is not
limited to SearchPath email, VoIP services, internet access either at the office or
when paid for by the office, cell calls made in the office or on cells provided or paid
for by the office.
SearchPath franchise owners should encourage the use of these media and associated
services because information technology makes communication more efficient and
effective, and because they are valuable sources of information, e.g., about clients,
candidates, vendors and services. However, electronic media services provided by
the company are company property, and their purpose is to facilitate company
business.
The use of the Internet, email and other media for purposes other than company
business should be strictly forbidden. The display of any kind of sexually explicit or
otherwise offensive image or document on any company system should be a violation
of your policy of prohibiting sexual harassment. In addition, such material should
not be obtained, stored, distributed, edited or recorded using our network or
computing resources. No Software or downloads should be input into a personal
computer unless authorized by the franchise owner. IT questions must be forwarded
to the franchise owner immediately, who can then contact SearchPath for assistance.
Freedom from Discrimination and Harassment

SearchPath is an equal opportunity employer. We recruit, hire, train and promote our
employees and administer our personnel policies without regard to race, color,
religion, creed, age, sex, pregnancy, national origin or ancestry, marital status,
disability, veteran status or special disabled veteran or any other impermissible
factor, in accordance with applicable laws. Some jurisdictions also protect from
discrimination based on sexual orientation or identity.
It is the mandated policy, in accordance with the Canadian Labour Code, to prohibit
and prevent any form of illegal discrimination, harassment (specifically including, but
not limited to, sexual and racial harassment), or retaliation against any employee
and will not tolerate any such incidents or conduct by managers, supervisors or
coworkers. We will also attempt to protect employees from harassment in the
workplace by non-employees. In accordance with our commitment, each employee,
as well as each applicant for employment, should be treated with respect, fairness
and with consideration for their qualifications and work performance. We want all

employees to understand their value to our success and we will not tolerate behavior
on any employee’s part that does not support this, including behavior that is either
discriminatory or harassing.
All employees are strictly prohibited from sexually harassing or making improper
advances toward other employees. Sexual harassment includes unwelcome sexual
advances, requests for sexual favors, and all other verbal, physical or visual conduct
of a sexual or otherwise offensive nature, especially where:
 Submission to such conduct is made either explicitly or implicitly a term or

condition of employment;
 Submission to or rejection of such conduct is used as the basis for decisions
affecting an individual’s employment; or
 Such conduct has the purpose or effect of creating an intimidating, hostile, or
offensive working environment or interferes with work performance.
Offensive comments, jokes, innuendoes, and other sexually oriented statements are
also included. Examples of the types of conduct expressly prohibited by this policy
include, but are not limited to, the following:
 Touching, such as rubbing or massaging someone’s neck or shoulders, stroking

someone’s hair, or brushing against another’s body.
 Grabbing, kissing, fondling.
 Whistling.
 Lewd, off-color, sexually oriented comments or jokes.
 Foul or obscene language.
 Leering, staring, stalking.
 Suggestive or sexually explicit posters, calendars, photographs, graffiti, or
cartoons.
 Unwanted or offensive letters or poems.
 Offensive E-mail, Internet or voice-mail messages.
 Sexually oriented or explicit remarks, including written or oral references to
sexual conduct, gossip regarding one’s sex life, body, sexual activities,
deficiencies, or prowess.
 Repeated requests for dates after disinterest as indicated.
 Sexual favors in return for employment rewards, or threats if sexual favors are
not provided.
 Unlawful harassment of any other kind, including harassment based on race,
color, religion, creed, age, sex, pregnancy, national origin or ancestry, marital
status, disability, status as a Vietnam era or special disabled veteran, or any
other impermissible factor, in accordance with applicable laws.
 Any other conduct or behavior deemed inappropriate by the company.
Additionally, SearchPath franchises must strictly prohibit retaliation against any

employee either filing or being involved in filing a complaint of discrimination or
harassment, or for participating in the investigation of such a complaint.

In furtherance of this policy, SearchPath franchises must prohibit supervisors and

managers from dating any subordinate. Such relationships can be disruptive to the
work environment, create a conflict or the appearance of a conflict of interest, and
lead to charges of favoritism, discrimination, and claims of indirect sexual
harassment. While the Company has no desire to interfere with the private lives of
its employees, or their off-duty conduct, where such conduct impacts upon the work
environment in a negative manner, such as noted above, SearchPath franchises
reserve the right to take whatever action is appropriate, in its discretion, to protect
its interests and the interests of our employees and customers.
Early reporting and intervention have proven to be the most effective method of
resolving actual or perceived incidents of discrimination or harassment. Therefore,
while no fixed reporting period has been established, the Company strongly urges
the prompt reporting of complaints or concerns so that rapid and constructive action
can be taken. An employee who observes or feels they are the victim of
discriminatory conduct or harassment should report this to management
immediately. If an employee believes it would be inappropriate to discuss the matter
with their direct supervisor, they should report it to the next higher level of
management or the franchise owner. The incident should be investigated thoroughly,
promptly and in as confidential a manner as possible (in some instances of
discrimination or harassment, we are not able to guarantee confidentiality) and
appropriate corrective action, if warranted, will be taken. SearchPath franchises must
not tolerate conduct by its employees that violates the Company’s commitment to
equal employment opportunity. If an employee is found to have violated this policy,
he or she should face discipline, up to and including termination.
It is the responsibility of every manager and employee to conscientiously follow this

policy.

SearchPath Operations Manual Business Ethics
Business Ethics
SearchPath recommends that each franchise owner develop their own respective
Code of Conduct.
A code of conduct is intended to be a central guide and reference for users in support
of day-to-day decision making. It is meant to clarify an organization's mission, values
and principles, linking them with standards of professional conduct. As a reference,
it can be used to locate relevant documents, services and other resources related to
ethics within the organization
A code is an open disclosure of the way an organization operates. It provides visible

guidelines for behavior. A code is also a tool to encourage discussions of ethics and
to improve how employees/members deal with the ethical dilemmas, prejudices and
gray areas that are encountered in everyday work. A code is meant to complement
relevant standards, policies and rules, not to substitute for them.
Codes of conduct offer an invaluable opportunity for responsible organizations to

create a positive public identity for themselves which can lead to a more supportive
political and regulatory environment and an increased level of public confidence and
trust among important constituencies and stakeholders.
SearchPath franchises are built upon the principles of integrity and respect, and as
such, employees are expected to adhere to both the letter and spirit of the Company’s
business conduct policy. Employees are expected to devote their best efforts to the
interests of the Company. Business dealings that appear to create a conflict between
the interests of the company and an employee are unacceptable. We recognize the
right of employees to engage in activities outside of their employment which are of
a private nature and unrelated to our business. However, the employee must disclose
any possible conflicts so that the Company may assess and prevent potential conflicts
of interest from arising. A potential or actual conflict of interest occurs whenever an
employee is in a position to influence a decision that may result in a personal gain
for the employee or an immediate family member (i.e., spouse or significant other,
children, parents, siblings) as a result of the Company’s business dealings.

SearchPath Operations Manual Shared Network Referral
Split Referral Guidelines
As in many similar businesses there is a tremendous opportunity to do shared or split

business both with other SearchPath offices and in some case external partners.
Before you do enter a split relationship there are some critical thought processes you
need to work through regardless of who the split partner is.
1. Do you have a complete understanding of the terms and conditions under

which a split will be paid?
2. If a replacement or refund is required, who will do the replacement and how
does that impact timing of payment of the split?
3. Do you have a written agreement covering all the above?
What is a split?
1. A split is an agreement between 2 businesses each of which is taking an active
role in making the placement. Normally it is two offices one with a job order
and the other with a candidate. There can be a situation where more than two
businesses are involved.
2. A split occurs when one office contacts another office for help making a
placement. Key point – Making a placement. Someone reaching out for
guidance, opinions and counsel doesn’t constitute a spilt scenario unless it is
clearly spelled out in the split agreement.
3. A split arrangement can be agreed to where one office acts as the business
developer and the other as the fulfillment partner across a broad base of
activities. However, it is even more important in this scenario that all the
details concerning changes in the split percentages over time, new business
generated by the fulfillment partner and replacement activities be clearly
spelled out in the split agreement document.
4. SearchPath Headquarters cannot control the actions of an independent
business or people, which is why a written agreement between the parties is
a critical part of a good spilt relationship.
Things to remember:
1. Splits, even between SearchPath offices, may require negotiation, but it can
be worked out if handled professionally.
2. These agreements must be executed by owners/managers only.
3. Unless an agreement can be reached by all parties involved, the matter should
be dropped.
4. There must be written documentation of the negotiated split arrangement,
signed by the owner/manager of each SearchPath Franchise.
5. Should the "middle" SearchPath Franchise refer an SNR candidate without
negotiating a satisfactory three-way split arrangement, they will not be entitled
to any part of the fee.
6. Clarify responsibilities for refund or replacement guarantees between SNR
partners.

Shared Network Referral Definition

A Shared Network Referral (SNR) is the verbal acceptance, followed by confirmation
in writing or electronically, of job order(s) or candidate(s) from one SearchPath
Franchise to another SearchPath Franchise, or internally from one search consultant
to another search consultant.
Out of Network Referral Definition

An Out of Network Referral (ONR) is the verbal acceptance, followed by confirmation
in writing or electronically, of job order(s) or candidate(s) involving one SearchPath
Franchise to another search partner outside of the SearchPath Network.
Similarities and Differences

In either situation a written agreement as to the terms and conditions of the split will
govern any dispute that may arise. If no written agreement exists either between
SearchPath offices or with a 3rd party, there may be no recourse available.
Initiating a Shared Network Referral

To initiate a Shared Network Referral the process begins with a conversation between
one SearchPath Franchise to another SearchPath Franchise. Once the Shared
Network Referral has been verbally accepted, it must be followed by either a written
SNR form or an electronic confirmation between the two owners/managers.
Accepting a Shared Network Referral

Once an SNR is accepted by any means, it cannot later be rejected on the grounds
that it is a Job Order or Candidate that the receiving SearchPath Franchise or search
consultant already has, unless mutually agreed upon by the managers of both
SearchPath Franchises.
Rejecting a Shared Network Referral

A split referral job or candidate may be rejected if the receiving SearchPath location
is actively working with the Company and has that Job Order or with the Candidate
defined as having a full CDS or current resume and has had contact with the
company/candidate regarding the opportunity in the past 60 days.
A split may be rejected if the candidate/Job Order is not a "fit" and the rejecting
SearchPath location has no intention of maintaining the information in its database.
A split referral may also be rejected if it contains terms inconsistent with arbitration,
the office guarantee policy or the local, state or federal laws of the rejecting office.
If, however within 90 days of the referral, the rejecting office then solicits the
candidate or company directly, a 50/50 split would be due the referring office of all
placements made with that company or fees generated directly through either placing
the candidate or referrals from the candidate that result in a placement within 180
days of the rejection.

If agreed upon by both owners/managers, a receiving SearchPath location may

accept a referred candidate on a "this person for this job only" basis, even though
the candidate/job order was already in the receiving SearchPath locations database
but was not identified previously for the Job Order. If the candidate is placed on the
open job by the receiving SearchPath location, a fee may be split. If the candidate is
not placed on the specific Job Order, the candidate/job order would not be considered
a referral for future placements.
Registering of Shared Network Referrals

Every SearchPath Franchise should register all its acceptances as well as rejections
of SNR’s, and the search consultant assigned to the SNR by the order received. If
rejected, the reason for rejection should be entered on the SNR form and a copy filed
or logged. Electronic logging of computer-generated SNR’s, as well as hardcopy
SNR’s, are to be considered as acceptable.
Terms of the SNR

All terms must be outlined by the referring SearchPath location to the receiving
SearchPath location prior to acceptance (i.e. extended guarantees, any unusual
circumstances, and payment terms, etc.). Furthermore, the percentage of the split
must be stated and accepted during the phone conversation and on the written or
electronic split referral.
The most basic standard split percentage is 50/50. Beyond that the other normal
structure is 25% for Name Generation, 25% for Job Order Creation, 25% for
Candidate Management and 25% for Client Management.
Guarantee of Shared Network Referral

As stated above, the referring SearchPath location must inform the receiving
SearchPath location of the guarantee terms quoted to the client and clearly stated on
the split referral form. Both SearchPath locations must agree on a client's fee
payment and guarantee terms. Any changes made to the terms once the assignment
has commenced must be mutually agreed upon by both parties and confirmed in
writing.
The receiving location MUST agree that in the event of a fall off after
cash has been paid out, to promptly refund all funds received for the
placement or to not get paid until the guarantee period is concluded.
If a refund or partial refund is due a client on a split referral placement, both

SearchPath locations are collectively responsible for refunding the fee. If the refund
is a full refund, each SearchPath location will fully refund its share of the fee. If the
refund is a partial refund, each SearchPath location will refund the appropriate
percentage of its share of the fee.

If the client is due a free replacement candidate or credit, the SearchPath location
who referred the candidate is responsible for providing a suitable replacement.
If, for some reason, the receiving SearchPath location who referred the candidate
does not provide the "replacement" candidate who is subsequently hired by the client,
the receiving SearchPath location must return their share of the fee to the referring
SearchPath location.
Example:
SearchPath location A requests a split referral candidate from SearchPath
location B. SearchPath location A places that candidate and splits the fee with
SearchPath location B. The candidate is terminated, and SearchPath location
A owes the client a "free replacement" candidate. SearchPath location A re-fills
the position with either their own candidate or a split referral candidate from
SearchPath location C, and SearchPath location B should return their share of
the fee to SearchPath location A.
Changes to the Split Agreement

In the event the client fails to confirm the fee as cleared by the referring SearchPath
Franchise, changing the original split arrangement requires the agreement of both
owners/managers, and must be accomplished within five (5) working days of the
referral. After the five (5) working days, the percentage of the split agreed to will
remain in effect under all circumstances. There can be no later renegotiations of the
split percentages.
Referral of a Job Order - Not of a Company

Unless agreed to in writing, the referral of a Job Order from one SearchPath Franchise
to another is the referral of a specific Job Order(s) and not the referral of the
company. If a placement is made, the referring SearchPath Franchise will only be
entitled to a split if the specific Job Order(s) referred is/are filled.
Exception: If a candidate is presented by the receiving SearchPath Franchise

and interviewed for the specific Job Order(s) referred, and is hired for another
position by the company, a split is due on that placement, but only if no split
resulted from the specific Job Order(s) originally referred.
Additional Job Orders as Result of Placement

The referring SearchPath Franchise will not be due a split if other Job Order(s) are
developed and subsequently filled as a result of the original referral unless it meets
the exception criteria mentioned in the previous paragraph. Other Job Order(s)
developed may be referred to other SearchPath Franchisees, but the specific original
referral cannot be referred unless the originating SearchPath Franchise gives
permission and split arrangements are clarified and agreed upon between the new
receiving manager, the original receiving manager and the original referring
manager. If this is not done and a placement results, the fee split is due between the
originating SearchPath Franchise and the placing SearchPath Franchise.

Fee Splits on Additional Openings in Specific Job Order

If the specific Job Order(s) referred indicates more than one (1) opening, the
receiving SearchPath Franchise will owe split fees on all placements made on the
specific referral(s) up to and including the number of openings specified. The exact
job titles and the specific number of openings must be clearly indicated on the Job
Orders and the SNR form.
The two most common arrangements are:

1. Fifty percent (50%) to the placing SearchPath Franchise, twenty-five
percent (25%) each to the other SearchPath Franchises, or
2. In the case where 3 parties are involved 1/3 to each SearchPath Franchise.
Candidate Referrals
The SearchPath Franchise or search consultant referring a candidate must have
interviewed the candidate, completed a Candidate Data Sheet, entered the candidate
into the database, and attach the candidate's current CDS and resume or profile to
the referral.
If a candidate is accepted by a receiving SearchPath Franchise and is subsequently

placed in any position with any client company within 12 months of the referral, a
split is due the referring SearchPath Franchise. Prior to the acceptance of the referral
of the candidate the split must be negotiated, a 50/50 SNR split will be assumed.
The receiving SearchPath Franchise is responsible for checking if the candidate is on
their database prior to the acceptance of the referral. After agreeing to accept a
candidate, an SNR cannot be rejected later because the candidate was already in the
receiving SearchPath Franchises database or known in the receiving SearchPath
Franchise.
Additional Splits on Candidates Referred

In the event a SNR candidate is not placed by the receiving SearchPath Franchise
and goes into their database, the database record must indicate that the source of
the candidate was thru an SNR, and the name of the SearchPath Franchise or search
consultant that referred the candidate must be logged. If, in the likely event, the
receiving SearchPath Franchise or search consultant receives a Job Order thru
another Shared Network Referral, and a search of their database matches an SNR
candidate with the Referred Job Order, there are 3 ways the situation can be handled:
1. The receiving SearchPath Franchise should call the original referring

SearchPath Franchise, apprise them of the situation and attempt to work out
an equitable agreement. If a satisfactory agreement is obtained, call the
SearchPath Franchise sending the SNR and inform them of the situation stating
what the receiving and referring individuals are willing to do in the event a
placement is consummated. There must be a three-way agreement among the
managers involved. If this cannot be negotiated, the candidate should not be
referred.

2. Contact the individual who sent you the Job Order or Candidate Request.
Explain that you have a candidate referred from another SearchPath Franchise
who fits the specifications. Determine what split the individual referring the
Job Order or candidate request will accept. When this has been negotiated,
contact the original referring SearchPath Franchise. Explain the situation and
the split arrangement negotiated. If all three agree on the proposed fee split,
refer the candidate. If agreement cannot be reached, don't refer the candidate.
3. The altruistic alternative, which some follow, is to call the individual that
referred the candidate, apprise him/her of the potential "fit" and details of the
SearchPath Franchise who submitted the SNR, Job Order, or Candidate
Request and then step out of the situation completely.
Rejecting a Candidate Referral

A SNR candidate may be rejected if the candidate is not a "fit" and the rejecting
SearchPath Franchise has no intention of maintaining the candidate in its database.
A SNR candidate may also be rejected if the requesting SearchPath Franchise already
has the candidate in its database and the candidate's current resumes or CDS on the
file at the time of the referral and has spoken with the candidate within 90 days prior
to the date of referral. However, if agreed upon by both owners/managers, a
receiving SearchPath Franchise may accept a referred candidate on a "this job only"
basis, even though the candidate was already in the receiving SearchPath Franchises
database but was not identified previously for the Job Order. If the candidate is
placed on the open job by the receiving SearchPath Franchise, a fee may be split. If
the candidate is not placed on the specific Job Order, the candidate would not be
considered a referral for future placements.
Guarantees for Referred Candidates

Both SearchPath Franchises must agree on a client's fee payment and guarantee
terms, as well as the split percentage between the SearchPath Franchises. The
guarantee offered to the client may be a full or partial refund, credit note or a free
replacement guarantee.
If a refund or partial refund is due a client on an SNR placement, both SearchPath

Franchises are collectively responsible for refunding the fee. If the refund is a full
refund, each SearchPath Franchise will fully refund its share of the fee. If the refund
is a partial refund, each SearchPath Franchise will refund the appropriate percentage
of its share of the fee.
If the client is due a free replacement candidate or credit, the SearchPath Franchise
who referred the candidate is responsible for providing a suitable replacement.
If, for some reason, the receiving SearchPath Franchise who referred the candidate
does not provide the "replacement" candidate who is subsequently hired by the client,
the receiving SearchPath Franchise must return their share of the fee to the referring
SearchPath Franchise.

Example:
SearchPath Franchise A requests an SNR candidate from SearchPath Franchise
B. SearchPath Franchise A places that candidate and splits the fee with
SearchPath Franchise B. The candidate is terminated, and SearchPath
Franchise A owes the client a "free replacement" candidate. SearchPath
Franchise A re-fills the position with either their own candidate or an SNR
candidate from SearchPath Franchise C, and SearchPath Franchise B should
return their share of the fee to SearchPath Franchise A.
The 120-Day Rule

A split is due on any candidates referred within 120 days on the specified job,
regardless of when the person may be hired. If a candidate is hired who is not referred
within the first 120 days, no split is due under these rules.
Continuation of an SNR within the 120-Day Period

SearchPath Franchise "A" submits an SNR to SearchPath Franchise "B" which is
accepted. SearchPath Franchise "B" submits candidates or is about to when it is
informed by the employer that the job has been filled through another source. The
client later calls SearchPath Franchise "B" directly (still within the 120-day period)
and tells them the candidate whom they thought they hired either turned the job
down or didn't report for work.
If SearchPath Franchise "B" submits a candidate within the 120-day period that is
subsequently hired, a split is due SearchPath Franchise "A".
Exception:
SearchPath Franchise "B" learns that a person has accepted the job through
another source and indeed did start work but quit or was terminated. If this
occurs at any time within or beyond the 120-day period and SearchPath
Franchise "B" is called directly by the company or learns of the Job Order as
a result of a follow-up call to the client and fills the Job Order, no split is due
SearchPath Franchise "A ".
Job Order SNR Extensions

SNR’s job orders cannot be extended beyond 120 days unless agreed to (between
the 110th to 119th days of the SNR) by the managers of the referring and receiving
SearchPath Franchises. Search consultants in referring and receiving SearchPath
Franchises cannot agree to this extension. This extension can be for any period
mutually agreed upon by both owners/managers.
The verbal agreement to extend the SNR must be followed by a signed SNR form
clearly indicating the agreed-upon extension. Without this agreement in writing, no
extensions are permitted.
The referring and receiving manager are under no obligation to grant an extension.

Notification to Referring SearchPath Franchise

The SearchPath Franchise making the placement (i.e., making the candidate
presentation, managing the hiring process and closing the placement) must notify
the referring SearchPath Franchise immediately upon confirmation of the placement.
The referring SearchPath Franchise should immediately invoice the placing
SearchPath Franchise for its agreed upon share of the fee.
Invoicing the Client

The SearchPath Franchise making the placement, or where applicable Recurve, will
invoice the employer-client and retain its prior agreed upon share of the total fee
collected or the relevant stage payment where a retainer has been closed.
The SearchPath Franchise referring the original job order will receive its agreed-upon
share of the total fee collected or the relevant stage payment where a retainer has
been closed once payment has been received by the receiving SearchPath Franchise.
Payment will be made in accordance with the terms as stipulated in the payment to
referring SearchPath Franchise below.
Payment to Originating SearchPath Franchise

Payment of the agreed-upon split is due the originating SearchPath Franchise within
three (3) days after receipt of the fee by the placing SearchPath Franchise.
Refunds
In the event of a refund, credit for future placement or replacement made by another
SearchPath Franchise, receiving SearchPath Franchise shall call the referring
SearchPath Franchise and explain the circumstances. A letter of confirmation stating
clearly the relevant details should follow. The referring SearchPath Franchise must
send its portion of the refund due to the placing SearchPath Franchise within three
(3) days of the call requesting the refund check. However, this is only due when it
occurs within the original guarantee as it appeared on the SNR form.
Electronic SNR Overview

SNR’s originating from electronic sources, (database or other approved sources etc.),
are SNR’s valid under the rules stated above.
When a SearchPath Franchise posts either a Job Order or a candidate into a database,
an ownership stamp is created. If the record is selected by another SearchPath
Franchise, the stamp travels with the record and it then becomes a split record.
All disputes arising from Electronic SNR’s will be handled by binding arbitration. The
arbiters will have the right to request a copy of the electronic split records to verify
the time frames. If a SearchPath Franchise decides to not allow access, the arbiters
will have the right to find for the other party. The date and time stamps of the
computer are non-modifiable.

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SCHEDULE D

SEARCHPATH GLOBAL, INC.

Sole Proprietorship ....................................................................................... 1

Business Planning ......................................................................................... 6

3. SETTING UP THE OFFICE

Choosing a Location .................................................................................... 10

Importance of Your Hires ............................................................................ 25

Business Insurance ..................................................................................... 78

Communicating Policies .............................................................................. 82

Business Structure Options

Most importantly, as a sole proprietorship, your company name is not

© 2020 SearchPath® Page 1

As a partnership, you are also at a disadvantage when it comes to raising

One thing to keep in mind—Corporations do require some initial set up fees

Structure Comparison Matrix

Ownership By a single By two or more persons By unlimited number

Management The owner controls By general partners Corporation's board of

Life Will terminate with Generally, for a specific Unlimited, unless by

© 2020 SearchPath® Page 2

Taxation Owner taxed on Partners taxed on share of Corporation taxed on

Advantages Tax advantage by Easy to form Legal entity separates

Disadvantages Unlimited personal Unlimited personal liability Difficult and expensive

© 2020 SearchPath® Page 3

1. What type of office environment do you want? The desired

2. How large do you want to be in terms of revenue and number of

3. How diverse do you want your office to be in terms of practice

4. What financial resources are currently available? Your current

© 2020 SearchPath® Page 4

5. Do you want your growth strategy to be based on time or

6. Where do you want to be in 3 – 5 years? Each decision you make

© 2020 SearchPath® Page 5

© 2020 SearchPath® Page 6

partnership are when one partner is a very capable business

© 2020 SearchPath® Page 7

morning is a challenge that many people who have been successful

The non-billing manager can create industry focused teams to further

© 2020 SearchPath® Page 8

Contact a SearchPath operations consultant to develop and

© 2020 SearchPath® Page 9

Setting Up the Office

 Cost: Affordability is the most important consideration. You will need to

 Appeal: Appeal is to clients and candidates are not a primary factor as

o Partitioned Open Space: 80 to 110 sq. ft. per person.

© 2020 SearchPath® Page 10

o Conference Room: 25 to 30 sq. ft. per person. (Must be able to

It is important to note that most spaces will not be configured to these

 Internet Capabilities: Another consideration that's important for your

 Electrical Power: Besides tech and communications wiring, don't

© 2020 SearchPath® Page 11

 Convenience: You want a location that is convenient to you and those

 Security: The office space should be in a secure building and

 Area / Building / Space Amenities: Desired amenities include

 Average earnings in locality: This can impact your ability to attract

 Expansion Capabilities: Unless you intend to remain a small

© 2020 SearchPath® Page 12

A fully informed decision involves a complex matrix of issues. Determine your

Talk to your SearchPath Operations consultant to discuss your

Negotiating the Lease

© 2020 SearchPath® Page 13

 Personal Guarantee: Many landlords will want a personal

 Escalation clause. Since most leases contain a rent escalation clause,

© 2020 SearchPath® Page 14

 Exclusive. To avoid confusion, ask that no other business similar to