Snelling Franchise Cost, Revenue & Review 2026
- Investment
- $45K – $151K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 10.5%
- on 22 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Snelling, a HireQuest brand, is a staffing franchise placing temporary and direct-hire workers in office, industrial, and professional roles. Franchisees run a staffing office recruiting candidates, managing placements, and serving employer accounts.
FranchiseVerdict summary · 2026
A Snelling franchise requires a total initial investment of $45K – $151K, including a $3K – $25K franchise fee and an ongoing 4.5% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 10.5% charge-off rate across 22 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $45K – $151K
- 12th pct Business Serv…
- Avg gross sales
- N/A
- Projection
- Royalty
- 4.5%
- 5th pct Business Serv…
- Units
- 76
- 44th pct Business Serv…
- SBA charge-off
- 10.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $45K – $151K including a $3K franchise fee, 4.5% ongoing royalty.
- RETURNSItem 19 reports Average and Median Profit rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 65/100 (higher is better). SBA loan charge-off rate of 10.5% across 22 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -2 franchised outlets in the latest year (3 opened, 5 closed) (Item 20).
- DATAItem 19 reports Average and Median Profit rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HQ Franchising Corporation
- Parent company
- HireQuest, Inc.
- FDD Item 1, page 10 of the 2025 FDD
- Predecessor
- Hire Quest, L.L.C.
- Prior franchisor entity
- CEO title
- President and CEO of HireQuest, Inc.
- Richard F. Hermanns
- CEO experience
- 23 yrs
- Years in role or industry
- Incorporated in
- Delaware
- HQ
- 111 Springhall Drive, Goose Creek, SC 29445
- Auditor
- Forvis Mazars LLP
- Audited financials
- Franchisor revenue
- $34.6M
- vs $37.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 10
2 other brands on this site name HireQuest, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Richard F. Hermanns
- Headquarters
- SC
- FDD year
- 2025
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 26% below the typical business services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $3K | $25K | |
| Real Propertynot refundable | $800 | $2K | |
| Leasehold Improvements, Furniture, Fixturesnot refundable | $2K | $15K | |
| Equipmentnot refundable | $3K | $5K | |
| Opening Advertisingnot refundable | $3K | $5K | |
| Training Expensesnot refundable | $2K | $3K | |
| Start-up Suppliesnot refundable | $200 | $1K | |
| Insurancenot refundable | $1K | $5K | |
| Utility Deposits | $200 | $3K | |
| Professional Feesnot refundable | $300 | $4K | |
| Additional Funds (12 months)not refundable | $30K | $75K | |
| Softwarenot refundable | $1K | $5K | |
| Total initial investment | $45K | $148K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $45K – $151K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $75K
- Middle of category vs category
- Franchise fee
- $3K – $25K
- Top 40% of category vs category
- Royalty
- 4.5%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 5.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $5K |
| Total fee load | 5.5% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Snelling is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Snelling unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Item 19 reports Average and Median Profit rather than annual gross sales, so unit revenue is not directly comparable. We omit it from rankings.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.5% — below the Business Services median of 9.0%.
Disclosure
Item 19 reports Average and Median Profit rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 11.8% CAGR over 3 years across 76 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Snelling Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 76
- Opened
- 3
- Last reporting year
- Closed
- 5
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -2.6%
- Net unit change over 3 years
- 3-yr CAGR
- +11.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 10
- Franchisor's next-year forecast
- Transfer rate
- 2.6%
- Owners selling to other franchisees
- Termination rate
- 1.3%
- Franchisor-initiated terminations
- Ceased ops
- 7.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 25 states 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.
25
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- EL 1
Counts only, from the list the franchisor prints in Item 20; 73 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 22
- Loan volume
- $4.1M
- Median loan
- $186K
- average
- Charge-off rate
- 10.5%
- on 22 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 2
- Typical loan rate
- 6.5%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 17%
- top lender's share
Vintage analysis
Snelling charge-off rate by loan vintage
Top lenders financing Snelling franchisees
Showing 3 of 13 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Snelling from SBA 7(a) FOIA data.
- Avg interest rate
- 6.50%
- Lender concentration
- 16.7%
Top SBA lendersTop lender holds 17% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 3 | $390K | 0.0% |
| 2 | Readycap Lending, LLC | 2 | $1.2M | 100.0% |
| 3 | Bank of America, National Association | 2 | $145K | 0.0% |
| 4 | Simmons Bank | 2 | $586K | 0.0% |
| 5 | Legend Bank, National Association | 1 | $68K | 0.0% |
| 6 | Old National Bank | 1 | $100K | 0.0% |
| 7 | Fulton Bank, National Association | 1 | $48K | 0.0% |
| 8 | United Community Bank | 1 | $100K | 0.0% |
| 9 | TD Bank, National Association | 1 | $275K | 0.0% |
| 10 | Business Lenders, LLC | 1 | $200K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MOMissouri | 3 | 0 | 0.0% |
| TXTexas | 3 | 1 | 50.0% |
| CACalifornia | 2 | 0 | 0.0% |
| ILIllinois | 2 | 0 | 0.0% |
| NJNew Jersey | 2 | 0 | 0.0% |
| VAVirginia | 2 | 0 | 0.0% |
| FLFlorida | 1 | 1 | 100.0% |
| NENebraska | 1 | 0 | 0.0% |
| PAPennsylvania | 1 | 0 | 0.0% |
| WAWashington | 1 | 0 | -- |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 10.5% — 34% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Strong financials: net worth $64.8M, net income $3.67M on $34.6M revenue, no bankruptcy or going-concern. One routine breach-of-contract/trade-secret suit brought BY the franchisor against a former franchisee. 76 units, +11.8% net growth, 0% turnover.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Case No. 2021544173: HQ Franchising Corporation and Hire Quest, LLC v. Tardis Staffing, LLC, James Seale, Jade Holdings, Raider Staffing, Franklin Capital Holdings, and Capital Source Group. Filed April 28, 2021 in 237th District Court, Lubbock County, Texas. Claims: Breach of Contract, Misappropriation of Trade Secrets, Breach of Duty of Good Faith and Fair Dealing, Conversion, Tortious Interference with Contracts, and Aiding and Abetting. Former franchisee Tardis Staffing and owner James Seale allegedly converted franchise receivables and violated non-compete covenants. Settled June 4, 2021 via Consent Judgment and Permanent Injunction. TRO Defendants (Tardis, Seale, Raider, Jade) agreed to pay $35,000 and comply with injunction terms. Defendants Franklin and Capital settled via confidential settlement agreements. Forbearance Agreement remains in effect.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
Score breakdown · what drove the 65 / 100 verdict
- 01HIGHOne litigation matter (franchisor as plaintiff vs former franchisee, routine commercial)
- 02MEDPositive net worth $64.8M, net income $3.67M, Item 19 disclosed, audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Geographic (Counties, City Limits, or Zip Codes) |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Berkeley County, South Carolina |
| Jury trial waiver | Yes |
| Governing law | South Carolina |
| Litigation count | 1 |
View Item 3 litigation summary
Case No. 2021544173: HQ Franchising Corporation and Hire Quest, LLC v. Tardis Staffing, LLC, James Seale, Jade Holdings, Raider Staffing, Franklin Capital Holdings, and Capital Source Group. Filed April 28, 2021 in 237th District Court, Lubbock County, Texas. Claims: Breach of Contract, Misappropriation of Trade Secrets, Breach of Duty of Good Faith and Fair Dealing, Conversion, Tortious Interference with Contracts, and Aiding and Abetting. Former franchisee Tardis Staffing and owner James Seale allegedly converted franchise receivables and violated non-compete covenants. Settled June 4, 2021 via Consent Judgment and Permanent Injunction. TRO Defendants (Tardis, Seale, Raider, Jade) agreed to pay $35,000 and comply with injunction terms. Defendants Franklin and Capital settled via confidential settlement agreements. Forbearance Agreement remains in effect.
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- Franchisee, subject to Franchisor approval; Franchisor assists and advises on lease negotiation
- Franchisor financing
- Offered
- Item 10
- POS system
- HQ WebConnect
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HQ WebConnect
Item 20 · call current owners
Franchisee Contacts
74 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Snelling franchise?
The total investment to open a Snelling franchise ranges from $45K – $151K, with an initial franchise fee of $3K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Snelling franchise owners earn?
Item 19 of the Snelling FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Snelling?
Snelling is franchised by HQ Franchising Corporation. Its parent company is HireQuest, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Snelling FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Snelling FDD and qualifies whose outlets they describe.
What is Snelling's franchise failure rate?
Based on SBA 7(a) loan data, Snelling has a charge-off rate of 10.5% across 22 loans, meaning 10.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Snelling franchise locations are there?
As of their most recent FDD filing, Snelling has 76 total units in the United States, including 76 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Snelling a good franchise to buy?
FranchiseVerdict rates Snelling as a B-grade franchise with a verdict score of 65 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.