Patrice & Associates

Item 7 lays out the initial investment at $105,100-$121,050, including a $65,000 franchise fee, with ongoing hits like 10% royalties, 2% brand fund, plus extras: 5% billing services, 7% database fee, $350-$500/mo tech, and $125/mo per recruiter. That's a layered fee structure that could eat into margins fast. Item 19 shines a light on performance: average gross revenue clocks in at just $18,976 across franchisees, but the median drops to $2,800—showing most units struggle while a few outliers boost the average. With 189 locations and only +1% growth from 183 to 184 (2023-2024), expansion feels stagnant amid 21 terminations, 6 non-renewals, and 2 transfers.

SBA data adds caution: 96 loans averaging $130,054, but a 14.6% default rate signals risk for financed owners. Litigation history is messy, with franchisee suits over fraudulent inducement, misrepresentation in states like CA, NY, MN, and franchisor counters on breaches. For buyers eyeing business services, this setup demands scrutiny—the low median revenue underscores why many exit, yet the model's access to candidates and sectors could reward persistent operators who scale recruiters. FranDB's deep dive reveals if the support justifies the fees in a flat-growth system.