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Link Staffing Services Franchise Cost & Fees

Date of Incorporation: 1980
Franchising Since: 1993
Headquarters: Houston, Texas

Business Description: The franchisor is Franlink, Inc. The Link franchise may be one of the only employment placement services businesses that emphasizes the crafts and trades in addition to general labor and clerical, administrative and professional labor.

Franchise Offer: The franchise offered is for the operation of an employment placement services business involving skilled and semi-skilled crafts and tradespersons, light industrial/unskilled laborers, clerical/administrative/professional laborers, and workers with other specialty skillsets.

Financial Assistance: Link bas established a financial assistance program tor qualified franchisee candidates, primarily Link employees and other individuals with experience in the staffing service industry. Link will determine in its sole discretion which franchisee candidates are qualified to receive this assistance, and may not offer this financial assistance to all potentially eligible franchisee candidates. Link may modify or discontinue the program, in whole or in part, at any time.

Training and Assistance: Link will provide initial training on the operation of a Link Business to franchisees (or their managing shareholder or partner) and other full time employees designated by Link. Operations training consists of approximately 5 days of classroom training facilitated by various experts, depending on the subject matter. Sales training consists of approximately 3 days of classroom training facilitated by various experts, depending on the subject matter. At its option, Link may send one or more representatives to the DMA (Designated Market Area), for a time period Link deems appropriate, to provide on-site training, support, and instruction during the Business’s start-up operations. Additional operations and sales training courses are also available and may be required if Link deems it appropriate.

Territory: Franchisees will operate their business at a specific location identified in the franchise agreement. Link will also establish a geographic area in which neither Link nor any of its predecessors or affiliates will, during the term of the franchise agreement, operate or grant a franchise for a Link Business as long as the franchisee is in full compliance with the terms and conditions of the franchise agreement and all other agreements (the designated market area/DMA). In most cases, a DMA will consist of a county, zip code (or similar jurisdictional entity), or a portion of a county in more heavily populated areas.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If requirements are met, the franchisee can renew for 2 renewal terms of 10 years each.

Obligations and Restrictions: Franchisees (or their managing shareholder or partner) are not obligated to participate personally in the direct operation of the business, although Link recommends that they do so. If the franchisee (or managing partner or shareholder) does not participate in day-to-day operations, the business must at all times be under the direct, on-premises supervision of a manager. This manager must complete Link’s training program. Franchisees must offer for sale and sell only those services that Link has approved. Franchisees may not offer for sale any products or services that Link has not authorized. Unless specifically authorized by Link, franchisees may only place Field Staff at client locations if those locations are located within their DMA, and may not send Field Staff to a client’s business outside of the DMA. Link may periodically implement policies which regulate franchisees’ recruiting of candidates outside the DMA and their solicitation and sale of services to clients outside the DMA.

Estimated Number of Units: 40

Investment Tables:
Initial Investment for a Start-Up Business
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Additional Training Deposit $10,000 $10,000
Signage $2,500 $5,000
Leasehold Improvements, Furniture, Fixtures, and First Month's Rent $15,000 $30,000
Insurance $1,500 $5,000
Initial Supplies $1,000 $2,000
Computer System, Telephone and Other Equipment $6,000 $12,000
Security Deposit, Dues, Permits, Subscriptions and Other Prepaid Expenses $2,000 $4,000
Additional Funds (3 Months) $35,500 $81,000
Initial Investment for a Conversion Franchise
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Additional Training Deposit $10,000 $10,000
Signage $2,500 $5,000
Insurance $0 $5,000
Computer System, Telephone and Other Equipment $5,500 $7,500
Additional Funds (3 Months) N/A
Other Fees
Type of Fee Amount
Service Fee 8% of Gross Billings or 34-42% of Gross Margin, whichever is greater.
Additional Assistance The then-current per diem charge, (currently $50 per person, per day) and any travel and living expenses incurred by the franchisor’s personnel.
Transfer The then-current charge. Currently $12,500
Interest Lesser of 1.5% per month or highest contract rate of interest allowed by law.
Operations and Other Manuals The then-current charge (estimated range from $1,500 to $2,000)
Costs and Attorneys’ Fees Will vary under the circumstances.
Indemnification Will vary under the circumstances.
Management Fee Will vary under the circumstances.
Software Support Fee $500 per month.
Web Maintenance Fee $150 per month.
Workers’ Compensation and Risk Management Program Participation (Insurance) Will vary under the circumstances.
Unemployment Insurance Will vary under the circumstances.
Audit and Interest Costs of inspection or audit, and interest equal to the lesser of 1.5% per month the highest commercial contract interest rate law allows.
Administrative Fee 0.5% of monthly payroll.
Territory Infringement Policy Violation Fee Will vary under the circumstances, but may include (a) repayment of all revenue the franchisee generated outside of his or her DMA and inside another franchisee's DMA to that franchisee, (b) reduction of the franchisee’s periodic distributions by the amount of revenue or Gross Margin generated from services the franchisee provided outside of your DMA, or (c) $100 per placement in violation of the Territory Infringement Policy.
Automated Timekeeping Fee $100 per month, per client.
Skills Testing Fee As set forth in the Manual.
Brokers Fees or Costs All (100%) of broker fees and other costs the franchisor incurs.

The above information has been taken from the FDD of Link Staffing Services. Year of FDD: 2016

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