FranchiseVerdict
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FV-01363·AVOIDExcellent81

Jomsom Staffing Services

Business Services - StaffingFranchising since 2012Website
Investment
$111K – $522K
75th pct Staffing
Avg revenue
42nd pct Staffing
Royalty
50.0% (?)
Likely extraction error
Units
1
0th pct Staffing
SBA default

Bottom line

  • Total investment $111K – $522K including a $100K franchise fee, 50.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 87/100.
  • 11 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Jomsom Franchise Company, LLC
Parent company
Agarwal Holdings, LLC and Loyalty Franchising, LLC
Incorporated in
New Jersey
HQ
4250 US Highway One, Suite 7, Monmouth Junction, New Jersey 08852
Auditor
Bernard Robinson & Company, L.L.P.
Audited financials
Franchisor revenue
$215K
vs $55K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Jomsom Staffing Services unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $111K–$522K
Working capital
$
FDD reports $5K–$10K

Unlevered ROIC · per unit

-70%

Negative

0%30–60% Yale band80%

Store EBITDA · annual
$-225K
EBITDA margin
-30.0%
Total invested
$324K
Payback
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Jomsom Staffing Services operates as a staffing and recruitment services franchise, placing temporary and permanent employees across industries. Franchisees manage client relationships, recruit candidates, process placements, and retain staff through ongoing service delivery. Revenue is generated through placement fees and service contracts with corporate clients.

CEO
Saurabh Agarwal
Founded
2012
FDD year
2023
States available
1

Item 7 · what it costs

The Vitals

Total investment
$111K – $522K
All-in to open one unit
Liquid capital
$5K – $10K
Cash you must have on hand
Franchise fee
$100K
Royalty
50.0%
Percentage of Net Royalties · typical 6–8%
Ad fund
n/d

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
1
Last reporting year
Closed
1
Turnover rate
100.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
33.3%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2021
1±0
Franchised units
2022
1
Franchised units
2023
1
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

87
Risk · 0-100
AVOID87 / 100

Avoid: Failing franchisor with going concern issues, toxic litigation history involving founder fraud allegations, unviable 50% royalty model, zero growth, and no financial transparency.

Score breakdown · what drove the 87 / 100 rating

  1. 01HIGHGoing concern status is FALSE — franchisor cannot guarantee ability to continue operations
  2. 02HIGHSevere litigation history involving founder John Hewitt with allegations of fraud, tortious interference, and securities violations from Liberty Tax Service tenure
  3. 03MEDOnly 1 franchised unit in system with no disclosed growth trajectory — indicates failed or stalled expansion
  4. 04MINORRoyalty structure of 50% of net fees is extremely aggressive and unsustainable for franchisee profitability
  5. 05MEDNo average revenue or net income disclosure (missing Item 19) — impossible to validate earnings claims
  6. 06MINORNo protected territory — direct competition from other franchisees and company-owned operations
  7. 07HIGHHigh franchise fee ($100,000) relative to single-unit system and going concern status creates poor risk/reward ratio
  8. 08HIGHManagement credibility severely compromised by founder's documented history of fraudulent practices and litigation

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
designated territory
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
11
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New Jersey

Item 11

Training & Operations

Classroom training
22 hrs
On-the-job training
0 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

2 numbers

Locked
(706) 453-••••
GA
(631) 831-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Jomsom Staffing Services · FDD (2023) PDF

Single-page checkout · instant download · CSV export of contacts available separately above