How many Management Recruiters franchised offices closed during 2023?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| Franchised offices, December 31, 2021 | 217 |
|---|---|
| Purchased in 2022 (net of sold locations) | 207 |
| Opened in 2022 | 16 |
| Closed in 2022 | (5) |
| Franchised offices, December 31, 2022 | 435 |
| Purchased in 2023 | 7 |
| Opened in 2023 | 14 |
| Closed in 2023 | (29) |
| Franchised offices, December 31, 2023 | 427 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, 29 franchised offices closed during 2023. This figure is part of a broader table tracking the changes in the number of franchised offices over time.
Specifically, the table shows that Management Recruiters started 2023 with 435 franchised offices. Throughout the year, 7 locations were purchased and 14 new offices were opened. However, 29 offices closed, resulting in a year-end total of 427 franchised offices.
For a prospective franchisee, this data indicates the churn rate within the Management Recruiters franchise system. While new offices are opening, a significant number are also closing, which could be due to various factors such as poor performance, failure to adhere to franchise agreements, or franchisees choosing to exit the business. It would be prudent for a potential franchisee to investigate the reasons behind these closures and assess the overall health and stability of the franchise system.