On what basis are the financial performance representations in the Management Recruiters FDD based?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
articular location or under particular circumstances.
The representations below are based on historical financial performance of our existing outlets.
2021 Executive Search Placement Information (207 out of 248 offices reporting) January 1, 2021 – December 31, 2021
| Systemwide Placements Reported | 6870 |
|---|---|
| Systemwide Placement Fees Reported | $179,006,622 |
| Average Placement Fees | $26,056.28 |
| Median Placement Fees | $21,000.00 |
| Highest Placement Fee | $189,151.20 |
| Lowest Placement Fee | $180.00 |
| Average number of Placements per office | 33 |
2022 Executive Search Placement Information (197 out of 205 offices reporting) January 1, 2022 – December 31, 2022
| Systemwide Placements Reported | 6352 |
|---|---|
| Systemwide Placement Fees Reported | $183,057,280 |
| Average Placement Fees | $28,940.86 |
| Median Placement Fees | $23,750.00 |
| Highest Placement Fee | $189,062.50 |
| Lowest Placement Fee | $196.34 |
| Average Number of Placements per office | 31.0 |
2023 Executive Search Placement Information (162 out of 204 offices reporting) January 1, 2023 to December 31, 2023
| Systemwide Placements Reported | 5,163 | |-----------------------------------------|------------------| | Systemwide Placement Fees Reported | $106,991,512.48 | | Average Placement Fees | $20,722.74 | | Median Placement Fees | $20,000.00 | | Highest Placement Fee | $202,135.83 | | Lowest Placement Fee | $27.00 | | Average Number of Placements per office | 25.3 |
2021 Contract Staffing Placement Information (81 participating offices out of 248 member offices) January 1, 2021 – December 31, 2021
| Average Bill Rate for all contractors | $78.49 | |------------------------------------
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–58)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the financial performance representations are based on the historical financial performance of existing outlets. The Item 19 disclosures include data from both executive search placements and contract staffing placements. These representations include information from 2021, 2022, and 2023.
For example, the 2021 Executive Search Placement information is based on data from 207 out of 248 offices reporting between January 1, 2021, and December 31, 2021. During this period, systemwide placement fees reported were $179,006,622 with average placement fees of $26,056.28. The average number of placements per office was 33.
Similarly, the 2021 Contract Staffing Placement information is based on 81 participating offices out of 248 member offices between January 1, 2021, and December 31, 2021. The 2023 Contract Staffing Placement information is based on 61 participating offices out of 204 member offices between January 1, 2023, and December 31, 2023. The 2023 Executive Search Placement information is based on 162 out of 204 offices reporting from January 1, 2023 to December 31, 2023. The 2022 Executive Search Placement information is based on 197 out of 205 offices reporting from January 1, 2022 – December 31, 2022. The 2022 Contract Staffing Placement information is based on 63 participating offices out of 205 member offices from January 1, 2022 – December 31, 2022.
It is important to note that not all franchisees are required to self-report placement activities, but all who were required to report have been included in the data. Also, franchisees are not required to offer contract staffing services, and the data includes only those who participated in contract staffing during the periods shown. Management Recruiters states that individual results may differ, and there is no assurance that a franchisee will earn as much as the amounts presented. The franchisor will provide written substantiation for this financial performance representation upon reasonable request.