SANFORD ROSE ASSOCIATES

Item 7 lays out an unusually affordable entry: initial franchise fee of $7,500, with total investment ranging $11,400 to $14,800 covering training, marketing materials, and setup—no real estate or inventory needed. Ongoing fees from Item 6 include 5.5% royalties on cash receipts up to $2 million (dropping to 0.25% after) plus a $2,500 quarterly minimum, ensuring steady franchisor revenue even from slower starts. Without Item 19 disclosure, there's no average revenue or profit figures, forcing reliance on indirect signals like 9 SBA loans averaging $194,444—suggesting franchisees often seek substantial financing post-launch to scale recruiting operations.

System metrics from Item 20 paint a mixed health picture: 172 locations in 2024, down 5% from 181 in 2023, with 30 terminations signaling potential owner exits amid challenges. Yet projected 23 new units hints at optimism, and long-term stability since 1970 under Next Level Exchange Holdings in Plano, TX, shows resilience. For investors eyeing business services, this low-cost model suits recruiters with sales chops, but the contraction and earnings blackout demand scrutiny of client acquisition realities before committing.