MRI Network Franchise Cost & Fee, MRI Network FDD & Franchise Information

MRI Network

Date of Incorporation: 1976

Franchising Since: 1976

Headquarters: Philadelphia, Pennsylvania

Country: U.S.

Description: MRI offers franchises to operate a Management Recruiters or a Sales Consultants personnel placement business. Clients include companies and other organizations that require permanent placement services.

Franchise Offer: Two types of franchise:
i.) Management Recruiters offices offer general permanent placement services, with emphasis on administrative, technical, managerial, professional, and sales personnel.
ii.) Sates Consultants offices engage in the permanent placement of sales, sales management, and marketing personnel.

Financial Assistance: The franchisor may finance a portion of the initial franchise fee. The franchisee will sign a promissory note payable to MRI and a security agreement. The note is typically due within 30 days after the last day of the New Office Development Training program. The franchisor does not charge interest if payments are made as agreed. Overdue amounts will bear interest at a 12% annual interest rate or the highest lawful rate, if that rate is lower.

Training and Assistance: The franchisee must attend the initial seven-week instruction program known as the New Office Development training program, which consists of both classroom and telephone conference training. The telephone conference portion consists of two weeks of telephone calls and directed activity immediately before the classroom portion and one week immediately after the first two weeks of classroom training. The classroom portion of the training is conducted in Cleveland, Ohio at the MRI Training Center. It is broken down into two sessions of two weeks each with a one week break.

Territory: The franchisee is not granted an exclusive right and contains no area of protection in their designated territory.

Term of Agreement and Renewal: The term of the franchise is optional between 10 to 20 years, with unlimited renewal periods of 5 years each.

Obligations and Restrictions: The franchisee must directly supervise the franchised business on its premises. If the franchisee has more than one office, they must be the full time manager of at least one of them. They may hire managers to manage the other office or offices. This manager must complete a new manager training course, which may be offered through Webinar, or other electronic means or in Cleveland, Ohio.

Total Number of Units: 831 units worldwide.

Investment Tables:

Initial Investment:

Name of Fee	Low	High
Initial Franchise Fee	$100,000	$115,000
Travel and Living Expenses while Training	$3,420	$4,800
Real Estate and Improvements	$900	$2000
Telephone System	$5,500	$6,500
Cabling for Office	$1,900	$1,900
Internet	$280	$280
Office Furniture	$ 1,000	$6,500
License Fees	$0	$300
Initial Office Supplies	$200	$500
Business Insurance	$1,800	$2,650
Legal	$200	$2,500
Miscellaneous	$250	$500
Additional funds	$21,000	$42,000
Total	$136,450	$185,430 +taxes

Ongoing Fees:

Name of Fee	Amount
Royalty	7% of Net Cash In, with a minimum royalty obligation beginning in the 3rd full year of operation of $7,000 adjusted for changes in the CPI
Advertising, Marketing and Public Relations	0.5% of Net Cash In
Supplemental Royalty	0.5% of Net Cash In
Training Fee	Varies
Transfer fee	Varies from 1% to 5% of sales price
Audit	Cost of Audit
Interest	Lesser of 18% per year or maximum legal rate
Termination	Formula

Date of FDD: 2008

The above information has been taken from the UFOC/FDD and online sources of the MRI Network.

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MRI Network Franchise Cost & Fees

MRI Network