What was the gross value of Management Recruiters' franchise agreements as of December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ing network in the world, headquartered in Delray Beach, Florida. MRI provides executive placement services and commercial staffing in the across the US and internationally.
On March 1, 2021, we completed our acquisition of Snelling Staffing and affiliates ("Snelling"). We acquired substantially all of the operating assets and assumed certain liabilities of Snelling for a purchase price of approximately $17.9 million. On March 22, 2021, we completed our asset acquisition of LINK Staffing and affiliates ("LINK") in which we acquired all of the franchise relationships and certain other assets of LINK for a purchase price of approximately $11.1 million. On October 1, 2021 we completed our acquisition of Recruit Media, Inc. ("Recruit Media"). We purchased all of the outstanding shares of Recruit Media for approximately $4.4 million, inclusive of $1.0 million of liabilities assumed. On December 6, 2021 we completed the acquisition of the Dental Power Staffing division ("Dental Power") from Dental Power International, Inc. ("DPI") for $1.9 million, inclusive of $382 thousand of contingent consideration.
For additional information related to these transactions, see Note 2 - Acquisitions.
As of December 31, 2022 we had approximately 433 franchisee-owned offices and 2 company-owned offices in 45 states and the District of Columbia. We are the employer of record to approximately 85 thousand employees annually, who in turn provide services to thousands of clients in various industries including construction, recycling, warehousing, logistics, auctioneering, manufacturing
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the financial statements discuss several acquisitions and sales of assets that involve franchise agreements. However, the document does not explicitly state the gross value of Management Recruiters' franchise agreements as of December 31, 2022.
The FDD mentions acquisitions such as Snelling Staffing and affiliates for approximately $17.9 million, LINK Staffing and affiliates for approximately $11.1 million, Recruit Media, Inc. for approximately $4.4 million, and the Dental Power Staffing division for $1.9 million. It also details the acquisition of Northbound Executive Search, LTD for approximately $11.4 million and The Dubin Group, Inc., and Dubin Workforce Solutions, Inc. for approximately $2.5 million. Additionally, the acquisition of certain assets of MRI was completed for approximately $13.3 million.
While these transactions involve the purchase and sale of assets related to franchise operations, the aggregate value of franchise agreements specifically is not provided. A prospective franchisee should consider asking Management Recruiters for a specific valuation of their franchise agreements as of December 31, 2022, to gain a clearer understanding of the company's asset values.