What was the value of Management Recruiters' franchise agreements, net, as of December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ertain 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").
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the provided excerpts do not contain a specific figure for the net value of Management Recruiters' franchise agreements as of December 31, 2021. However, the document does detail several acquisitions made by Management Recruiters during 2021, where franchise agreements were part of the acquired assets.
Specifically, the FDD mentions the acquisitions of Snelling Staffing, LINK Staffing, Recruit Media, Inc., and the Dental Power Staffing division. For example, Management Recruiters acquired LINK Staffing and affiliates for approximately $11.1 million, noting that substantially all of the fair value of the gross assets acquired was concentrated in the franchise agreements. This suggests that a significant portion of the $11.1 million was attributed to the value of the franchise agreements acquired from LINK.
To determine the precise net value of franchise agreements as of December 31, 2021, a prospective franchisee should ask Management Recruiters for their audited financial statements or request specific details on how the value of franchise agreements is calculated and reported in their financial records. Understanding the valuation methods and any associated amortization or impairment charges would provide a clearer picture of the net value of these agreements.