Management Recruiters
Formerly known as MRINetwork
Bottom line
- Total investment $44K – $96K including a $40K franchise fee, 9.0% ongoing royalty.
- Average unit revenue of $29K/year (median $24K).
- Rated CAUTION with a risk score of 71/100. SBA loan default rate of 0.0% across 109 loans (below the industry average).
- System contracting at -23.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
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 Management Recruiters unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Overview
About
Management Recruiters franchisees operate staffing and recruitment placement services, primarily focused on identifying and placing mid-to-senior level management candidates with corporate clients. Day-to-day activities include candidate sourcing and screening, client relationship management, job matching, and negotiating placement fees typically earned on successful placements.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting franchise system with alarming unit decline, undisclosed profitability, extremely low average revenues, unprotected territory, and prior franchisor litigation involving fund mismanagement present high-risk investment profile unsuitable for most investors.
Score breakdown · what drove the 71 / 100 rating
- 01MEDUnit count declined 17.5% YoY (203 units) indicating system contraction and franchisee viability concerns
- 02MINORAverage revenue of $28,940.86 is extremely low for a staffing/recruitment franchise and suggests most units are underperforming
- 03MINORNo Item 19 (Net Income) disclosure prevents accurate ROI assessment and raises transparency concerns
- 04HIGHPredecessor franchisor litigation history includes $300,000 settlement for encroachment and fund mismanagement—material governance red flag
- 05MINORNo territory protection creates direct competition risk and race-to-bottom pricing dynamics among franchisees
- 06HIGHGoing Concern status of 'False' suggests franchisor financial instability or restructuring concerns
- 07MEDRoyalty structure on disclosed average revenue ($28,940) yields only $2,604 in annual royalties—unit economics appear unsustainable
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Management Recruiters · FDD (2023) PDF