Snelling
Formerly known as HireQuest Inc.
Bottom line
- Total investment $45K – $151K including a $25K franchise fee, 4.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
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 Snelling unit return on the cash you put in?
Unlevered ROIC · per unit
87%
Above typical band (30–60%)
Overview
About
Snelling franchisees operate staffing agencies that place temporary and permanent employees in client organizations. Day-to-day operations include recruiting and screening candidates, managing client relationships, billing and invoicing for placements, and maintaining compliance with employment regulations. Revenue derives from markups on temporary worker billing and fees from permanent placement commissions.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 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
Snelling presents moderate-to-high risk due to shrinking unit count, opaque financials, complex layered royalties, and recent litigation suggesting franchisee-franchisor tension.
Score breakdown · what drove the 53 / 100 rating
- 01MINORDeclining unit count (-2.6% YoY) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo disclosed average revenue despite disclosed net income ($223k) raises transparency concerns and makes ROI analysis impossible
- 03MINORComplex royalty structure (4.5% payroll + 18% gross margin + 7% placement fees) creates unpredictable cost burden and potential for disputes
- 04HIGHLitigation in 2021 involving trade secret misappropriation and non-compete violation indicates franchisee compliance/enforcement issues
- 05HIGHGoing Concern flag is FALSE but this is unclear — requires clarification on franchisor's financial stability
- 06MINORHigh royalty on gross margin (18%) is unusual and may disproportionately penalize high-performing locations
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
53 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Snelling · FDD (2025) PDF