What was the total revenue for Management Recruiters for the year ending December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
icture_2.jpeg)
HireQuest, Inc. Consolidated Statements of Income
| Year ended | ||||
|---|---|---|---|---|
| December 31, 2021 | December 31, 2020 | |||
| Franchise royalties | $ 21,317,045 | $ | 12,792,793 | |
| Staffing revenue, owned locations | 230,668 | - | ||
| Service revenue | 1,2 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the total revenue for the year ending December 31, 2021, was $22,759,793. This figure represents the combined revenue streams from franchise royalties, staffing revenue from owned locations, and service revenue. Franchise royalties made up the bulk of the total revenue, accounting for $21,317,045, while staffing revenue from owned locations contributed $230,668, and service revenue accounted for $1,212,080.
Understanding the composition of Management Recruiters' revenue is crucial for prospective franchisees. The dominance of franchise royalties suggests that the company's primary income source is derived from its franchisees' sales. The additional revenue from staffing at corporate-owned locations and service revenue indicates other business activities that contribute to the overall financial health of Management Recruiters.
For a potential franchisee, this information highlights the importance of the royalty structure and the factors that influence it, such as franchisee sales performance and the overall health of the staffing industry. It also provides a benchmark for evaluating the company's financial performance and stability. Reviewing these figures in comparison to previous years and industry trends can offer valuable insights into the potential risks and rewards of investing in a Management Recruiters franchise.