What was the net change in the number of franchised Management Recruiters outlets during 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised Outlets | 2021 | 265 | 246 | -19 |
| Franchised Outlets | 2022 | 246 | 203 | -43 |
| 2023 | 203 | 170 | -33 | |
| Company Owned | 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 | |
| 2023 | 0 | 0 | 0 | |
| 2021 | 265 | 246 | -19 | |
| Total | 2022 | 246 | 203 | -33 |
| 2023 | 203 | 170 | -33 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–65)
What This Means (2024 FDD)
According to Management Recruiters's 2024 Franchise Disclosure Document, the net change in the number of franchised outlets during 2022 was a decrease of 43. This means that the Management Recruiters system had 43 fewer franchised locations at the end of 2022 compared to the beginning of the year.
Specifically, the number of franchised Management Recruiters outlets started at 246 in 2022 and ended the year at 203. This decrease could be due to several factors, such as franchisees not renewing their agreements, terminations, or transfers.
A prospective franchisee should investigate the reasons behind this net decrease to understand the stability and health of the Management Recruiters franchise system. It would be prudent to ask the franchisor about the specific causes for outlet closures and what measures are being taken to support franchisees and improve retention rates.