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MRI Network Franchise Cost & Fees

Date of Incorporation: 1957
Franchising Since: 1965
Headquarters: Philadelphia, Pennsylvania

Business Description: The franchisor is Management Recruiters International, Inc. (MRI). MRI offers franchises to operate a Management Recruiters or a Sales Consultants personnel placement business in permanent or temporary placement services. Management Recruiters offices offer general permanent placement services, with emphasis on administrative, technical, managerial, professional, and sales personnel. Sales Consultants offices engage in the permanent placement of sales, sales management, and marketing personnel.

Franchise Offer: The franchisee will operate a Management Recruiters or Sales Consultants staffing and recruiting business, offering both permanent placement and contract staffing services.

Financial Assistance: MRI offers financing options to qualified individuals depending on the category the franchisee falls into. MRI is registered on the Small Business Administration’s franchise registry as a franchise who meets the SBA’s lending guidelines.

Training and Assistance: Before franchisees open their office, franchisees must attend MRI’s initial four-week instruction program known as the New Office Development (NOD) training program. This course is designed as a blended adult learning program, consisting of web based e-learning, conference training, coaching and traditional classroom training. The program consists of up to two weeks of distance learning from the franchisee’s home base. At the franchisor’s discretion, it may provide new and existing franchisees with assistance and advice to support the development of the business through its entire life cycle. This support may consist of one-on-one meetings conducted before, during or after a company sponsored event or meeting; telephone conference calls or face-to-face visits to franchisees’ office.

Territory: Franchisees who purchase a franchise receive a single site non-exclusive location within a defined non-exclusive geographic area in which franchisees are free to establish or relocate their office. MRI can sell additional franchises in this geographic area. Franchisees are not granted an exclusive right and will have no area of protection.

Term of Agreement and Renewal: Franchisees choose a term between 10 and 20 years. If franchisees are converting an established recruiting firm, franchisees may choose a 5-year term. Franchisees can renew for unlimited renewal periods of 5 years each, subject to contractual requirements.

Obligations and Restrictions: Franchisees must directly supervise the franchised business on its premises. MRI requires franchisees to offer and sell only those services that it approves. If franchisees purchase a Management Recruiters franchise, they are permitted to recruit and place all types of employees in permanent positions and they must offer these services. If franchisees purchase a Sales Consultants franchise, their office must recruit and place only sales, sales management and marketing personnel. MRI may reduce or waive this restriction if it determines that it is appropriate to do so.

Estimated Number of Units: 630

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $40,000 $40,000
Additional Required Expenses $18,000 $32,844
Travel and Living Expenses while Training $3,000 $4,000
Real Estate and Improvements $0 $2,000
Cabling for Office $0 $1,900
Internet $50 $300
Office Furniture $0 $3,000
License Fees $0 $300
Initial Office Supplies $300 $500
Business Insurance $2,100 $2,700
Legal $0 $2,500
Miscellaneous $0 $500
Salaries – Researcher (paid monthly assumes 3 month working capital investment) $3,120 $6,240
Salaries – Acct. Exec. (paid monthly assumes 3 month working capital investment) $0 $9,000
ESTIMATED TOTAL (without taxes) $66,570 $105,784
Other Fees
Type of Fee Amount
Royalty The royalty fee is 9% on the first 500,000 of Net Cash-In; 7% on Net Cash-In from $500,001 to $1,000,000; 5% on Net Cash-In from $1,000,001 to $2,000,000; and 3% on Net Cash-In that exceeds $2,000,000. There is a minimum royalty obligation beginning in the 3rd full year of operation of $12,000 adjusted for changes in the CPI.
Marketing and Public Relations Fee 0.5% of Net Cash-In.
Training Fee Varies.
Transfer Fee Varies from 1% to 5% of sales price.
Other Amendment Fee $100
Audit Cost of audit.
Interest Lesser of 12% per year or maximum legal rate.
Global Meeting Fee $350-Varies - up to $800
Relocation Fee $500
Late Fee $10
Renewal Fee $500
Penalty for failure to secure a commercial space within the first six months after the Effective Date of the Franchise Agreement $500
Second Consultation, Desk Specialty and Database Build $2,500

The above information has been taken from the FDD of MRI Network. Year of FDD: 2016

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