HireQuest Direct

HireQuest Direct, under parent HireQuest, Inc., started franchising in 2003 and reached 77 locations by 2023 before dropping to 75 in 2024—a -3% contraction flagged in the 2025 FDD. With 76 total franchise locations and just 1 corporate-owned, the system shows modest scale but recent stagnation; only 2 transfers occurred, hinting at low mobility. No Item 19 disclosure means zero official earnings data from franchisees, a major gap that leaves AUVs, profits, or performance benchmarks invisible—forcing reliance on private inquiries. Item 20 likely projects limited openings given the downtrend, underscoring weak momentum.

Litigation notes in the FDD highlight risks: a former franchisee sued over breach of contract, non-compete violations, trade secret misappropriation, and tortious interference, painting a picture of internal friction. Without revenue transparency or growth tailwinds, this setup screams caution—reimbursing payroll via an affiliate adds operational layers that could squeeze margins unseen here. Longevity since 2003 offers brand credibility in industrial/hospitality staffing, but the combo of shrinkage, disputes, and data opacity suggests it's a high-risk bet unless you're experienced in staffing and tolerant of uncertainty.