What is a 'Direct Hire Placement' in the context of a Cordova franchise?

According to Cordova's 2025 Franchise Disclosure Document, a 'Direct Hire Placement' refers to a specific type of transaction within the franchised business. It involves placing a candidate with a client, where that candidate is then hired as an employee of the client company. In essence, Cordova facilitates a permanent employment arrangement between the candidate and the client, as opposed to a temporary or contract-based placement. This distinction is important for understanding the different revenue streams and service offerings of a Cordova franchise.

Understanding the difference between 'Direct Hire Placement' and 'Contract Placement' is crucial for prospective franchisees, as it impacts how Cordova generates revenue. While the FDD defines 'Direct Hire Placement', it also defines 'Contract Placement' as a short-term engagement of a candidate providing services on behalf of a client of the franchised business. The financial performance representations in Item 19 of the FDD likely break down revenues and costs associated with each type of placement, so understanding the definitions is important for interpreting that data.

For a prospective franchisee, it is important to understand the details of both placement types, including the fees associated with each, the typical length of a contract for each, and the support Cordova provides for each. Understanding the nuances of each type of placement will allow a franchisee to better target their marketing efforts and manage their business.