How Much Does a Management Recruiters Franchise Cost?
Data from the 2023 Franchise Disclosure Document
Investment Summary
Total Investment
$44K – $96K
Franchise Fee
$40K
Royalty
9.0%
Ad Fund
0.5%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Management Recruiters is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Management Recruiters franchise requires a total investment of $44K – $96K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $0 to $6K.
Ongoing Costs
Beyond the initial investment, Management Recruiters franchisees pay ongoing fees. The royalty fee is 9.0% of gross sales (Percentage of Net Cash-In). The advertising or brand fund contribution is 0.5% of gross sales.
Net Worth & Liquid Capital Requirements
Management Recruiters requires working capital of $0 – $6K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Management Recruiters's Item 19 financial performance representation:
Median gross sales: $24K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Management Recruiters?
SBA Loans Issued
72
Default Rate
11.3%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Management Recruiters has 72 SBA-backed loans on record. The default rate is 11.3%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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