What is the range of the estimated total initial investment for a Management Recruiters franchise?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
STIMATED INITIAL INVESTMENT
| Type of expenditure | Amount* | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee 1 | $40,000 | Up front or, in Franchisor's sole discretion, via weekly deduction from Franchisee's Share | The first 156 weeks following the Effective Date | MRI |
| Real Estate and | $0 - $2,000 | Lump sum | Before opening | Landlord |
| Improvements 2 | ||||
| Computer | $0 - $4,500 | As incurred | Before opening | Suppliers |
| Hardware 3 | ||||
| Applicant Tracking | $900 - $2,100 | As incurred | Before opening | Suppliers |
| System 4 | ||||
| Online Recruiting | $1,100 - $6,100 | As incurred | Before opening | Suppliers |
| Software 5 | ||||
| Cabling for Office 6 | $0 - $1,900 | Lump sum | Before opening | Suppliers |
| Internet 7 | $0 - $300 | As incurred | Before training | Suppliers |
| Office Furniture 8 | $0 - $3,000 | As incurred | Before opening or as arranged | Suppliers |
| Licensing Fees 9 | $0 - $300 | Lump sum | Before opening | Government Licensing Authorities |
| Initial Office | $300 - $500 | As incurred | Before opening | Suppliers |
| Supplies 10 | ||||
| Business | $1,750 - $2,000 | As incurred | Before opening | Insurance |
| Insurance 11 | Suppliers | |||
| Professional Services 12 | $0 - $2,500 | As incurred | At your discretion | Attorney, Accountant, Other Professional Service Providers |
| Miscellaneous 13 | $0 - $500 | As incurred | At your discretion | Suppliers |
| Salaries 14 : | $0 - $6,240 | As incurred | At your discretion | Staff |
| Researcher | ||||
| Account | $0 - $9,000 | As incurred | At your discretion | Staff |
| Executive | ||||
| Project | $0 - $9,000 | As incurred | At your discretion | Staff |
| Coordinator | ||||
| Printer (all in one) | $0 - $150 | As incurred | Before opening | Suppliers |
| Additional Funds | $0 - $6,000 | As incurred | At your discretion | Varies |
| (3 months) 15 | ||||
| TOTAL ESTIMATED INITIAL INVESTMENT: |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–26)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the estimated total initial investment ranges from $44,050 to $96,090. This investment encompasses various expenditures, including the initial franchise fee of $40,000, real estate and improvements which can range from $0 to $2,000, and computer hardware which can range from $0 to $4,500. Additionally, franchisees should budget for an applicant tracking system ($900 to $2,100), online recruiting software ($1,100 to $6,100), and cabling for the office ($0 to $1,900).
Further costs include internet service ($0 to $300), office furniture ($0 to $3,000), and licensing fees ($0 to $300). Initial office supplies are estimated at $300 to $500, while business insurance ranges from $1,750 to $2,000. Professional services could add another $0 to $2,500, and miscellaneous expenses are projected at $0 to $500. Depending on staffing needs, salaries could range from $0 to $9,000 for positions like Account Executive or Project Coordinator, and a printer may cost up to $150. Finally, additional funds for the first three months could require an investment of $0 to $6,000.
The wide range in total initial investment depends on several factors. Whether the franchisee already possesses computer hardware or office furniture significantly impacts the initial costs, as does the decision to hire staff immediately. The low end of the range assumes no employees are hired within the first three months, while the high end assumes three full-time employees are hired during that period. These estimates are based on Management Recruiters' experience as a franchisor and the experiences of new members, but the document indicates that they cannot guarantee franchisees will not have additional expenses.