Patrice & Associates Recruiting Specialists Franchise Costs, Fees & FDD

Year Business Began: 1989

Franchising Since: 2008

Headquarters: Scottsdale, Arizona

Estimated Number of Units: 190

Franchise Description: The franchisor is Patrice Franchising, LLC. The franchise offered is for the establishment and operation of a recruiting business specializing in providing management candidates to the retail, restaurant and hospitality industry, as well as all other industries.
Training Overview: The franchisor provides an initial training program for the managing owner. If franchisees hire a recruiter and/or manager, those individuals must also attend and successfully complete the initial training program. The initial training program is conducted virtually. Currently, the initial training program consists of 24.5 hours of classroom training and 26 hours of on-the-job training. Before participating in executive recruiting, franchisees must complete the executive recruiting training and certification. Executive recruiter training and certification is a supplemental module to the initial training. In addition to the initial training program, the franchisor provides franchisees with a mentor (who may be an established franchisee) during the 90-day period after they commence operating their P&A agency. The franchisor may also provide ongoing business development training covering various topics such as hiring and training recruiters, business expansion, client development, leadership training and territorial enhancement.

Territory Granted: The Franchise Agreement grants franchisees the right to operate one P&A Agency solely within the territory the franchisor designates. The franchisor typically grant territories that consist of one or more adjacent zip codes, as determined by the United States Postal Service. However, the franchisor may define territories in any other manner it deems appropriate (for example, by reference to city or other municipal boundaries). There is no minimum-sized territory. However, most territories include a population of approximately 250,000 people. Although the franchisor does not grant exclusive territories, it does grant franchisees certain territorial protections.

Obligations and Restrictions: Franchisees must designate an owner with overall responsibility for the management and operation of the P&A agency (the “managing owner”). The managing owner must meet all the qualifications specified by the franchisor in the FDD. Franchisees may hire a manager to manage, or to assist the managing owner with management of, the P&A agency. The managing owner is not required to dedicate full-time efforts to your P&A agency as long as a trained manager is managing the P&A agency. Any person hired as a manager must meet the qualifications outlined by the franchisor. The franchisor must approve all goods and services franchisees sell. Franchisees must offer all goods and services the franchisor requires. Franchisees may not sell any goods or services the franchisor has disapproved of.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees meet the conditions for renewal, they can enter into three consecutive successor franchise agreements. Each renewal term will be five years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s lease or other obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$65,000	$65,000
Initial Training Fee (Franchise Training)	$7,000	$7,000
Initial Training Fee (Manager Training)	$0	$3,500
Executive Recruiting Training & Certification Fee	$10,000	$10,000
Microsite Fee (includes setup and maintenance)	$7,000	$7,000
Marketing Starter Kit	$3,000	$3,000
Grand Opening Marketing	$6,000	$12,000
Rent and Security Deposit	$0	$1,000
Computer System	$500	$1,000
Office Equipment & Supplies	$300	$500
Business Licenses, Dues & Subscriptions	$800	$1,200
Professional Fees	$1,000	$3,000
Insurance (3 months’ premium)	$500	$850
Additional Funds (3 months)	$4,000	$6,000
ESTIMATED TOTAL	$105,100	$121,050

 
Other Fees

Type of Fee	Amount
Royalty Fee	10% of gross sales.
Billing Services Fee	5% of gross sales.
Brand Fund Contribution	2% of gross sales.
Proprietary P&A Database Fee	7% of gross sales.
Recruiter Setup & Licensing Fees	$125 initial fee plus $60 per month.
Training Fee (New Recruiters)	$500 if the franchisor trains the recruiter or no charge if franchisees train the recruiter.
Training Fee (New Manager)	$3,500
Annual Convention Fee	Currently, $495 per person per conference.
Technology Fee	Up to $500 per month (currently $350 per month).
Product Purchases	Varies depending on item purchased.
Franchise Resale Service Fee	Broker fee equal to the greater of 10% of the purchase price or $31,000 plus $3,000 marketing services fee.
Transfer Fee	$10,000
Reimbursement of Insurance Costs	If franchisees fail to obtain and maintain the insurance required, and the franchisor elects to do so on their behalf, they must reimburse the franchisor.
Taxes	Actual taxes imposed on the franchisor.
Late Fee	$100 plus default interest at lesser of (a) 18% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law.
Non-Compliance Fee	Up to $500 per incident.
Default Reimbursements	All costs the franchisor incurs to cure the franchisee’s default.
Management Fee	Currently, $600 per day plus travel expenses.
Indemnification	Amount of the franchisor’s damages, losses or expenses.
Attorneys’ Fees and Costs	Amount of attorneys’ fees and costs the franchisor incurs.

The above information has been compiled from the FDD of Patrice & Associates. Year of FDD: 2025.
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