Risk Score
Pending analysis
Investment Range
$153,500 - $210,500
Franchise Fee
$32,000
Total US Locations
81
Business Summary
AtWork Franchise, Inc. offers franchises for staffing businesses that provide temporary clerical, administrative, and light industrial personnel, as well as full-time placements, to customers within specific territories. Franchisees operate offices under the AtWork brand and utilize the AtWork Franchise System. The business operates by placing temporary workers with clients, with AtWork Franchise, Inc. handling billing, collections, and remitting the franchisee's share after deductions for royalties and marketing contributions.
Corporate History
AtWork Franchise, Inc. was incorporated in Tennessee on April 20, 1992, and has offered franchises since that time. Initially, from 1992 through 2002, AtWork Franchise, Inc. offered AtWork Personnel Services franchises. From 2003 through 2011, it offered franchises limited to other specific secondary businesses, such as those placing medical personnel, which may operate under different terms than the current offering. AtWork Franchise, Inc. does not operate businesses of the type currently being offered but focuses solely on franchising. The company does not have a parent or any predecessors. However, its affiliate, G.C. Hall, LLC, has operated company-owned staffing outlets since December 2011. Other affiliates, Pipeline Talent Solutions, LLC and AtWorkGroup LLC, serve as guarantors and program owners under the Workers' Compensation Program.
Financial Overview
Investment Range
$153,500 - $210,500
Franchise Fee (Low)
$32,000
Franchise Fee (High)
$40,000
Royalty %
7%
Marketing %
0.5%
Equipment Costs (Low)
$15,500
Equipment Costs (High)
$22,500
Working Capital
$84,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
AtWork Franchise, Inc. presents audited financial statements that show some mixed financial trends. The company has maintained positive working capital, though it significantly decreased from 2022 to 2023. Net income also saw a decrease in 2023 compared to 2022. AtWork relies on a revolving credit agreement, with its outstanding balance nearly doubling from 2022 to 2023. There are also notable related party transactions, including significant payables and borrowings from affiliated entities. Despite these points, AtWork received an unqualified audit opinion, and the auditors found no substantial doubt about its ability to continue operations. Potential franchisees should be aware of the company's reliance on debt and related party transactions.
Financing Details
AtWork Franchise, Inc. does not appear to offer any direct or indirect financing to its franchisees. The provided document does not include a section dedicated to financing options provided by the franchisor. Instead, it mentions that franchisees may not pledge or encumber their agreement or business as security for loans from others without the franchisor's prior written consent, and any such lender's claims must be subordinate to the amounts owed to AtWork Franchise, Inc. or its affiliates. Therefore, prospective franchisees will need to secure their own funding through third-party sources.
Performance Metrics
Total US Locations
81
Franchised Units
81
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
AtWork Franchise, Inc. has no litigation history to report, as stated in Item 3 of its Franchise Disclosure Document. No litigation or arbitration proceedings, active or concluded, have been disclosed.
Bankruptcy History
AtWork Franchise, Inc. has no bankruptcy information to disclose, as stated in Item 4 of its Franchise Disclosure Document. This means neither the franchisor nor its managing executives have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Conditions
AtWork franchisees must have substantially complied with their franchise agreement throughout its term, including meeting the Minimum Performance Standard each Agreement Year. Franchisees must be in full compliance with the agreement and all System Standards both when they provide written notice of their election to acquire a successor franchise and at the commencement of the new franchise term. Franchisees are required to give AtWork written notice of their election to acquire a successor franchise no more than one year and no less than 180 days before their current agreement expires. They must maintain possession of their office and agree to remodel or expand it, add or replace improvements and operating assets, and otherwise modify their Personnel Services Business to comply with AtWork's then-current System Standards for new Personnel Services Businesses. Alternatively, they may secure an approved substitute office and develop it according to these standards. Franchisees must also sign AtWork's then-current form of franchise agreement, which may contain provisions that differ materially from their existing agreement, such as a higher Royalty, a different Minimum Performance Standard, or a reduced Protected Territory. Finally, franchisees and their owners must sign guarantees and general releases of any and all claims against AtWork and its affiliated parties.
Training & Support Program
Franchisor Assistance
AtWork Franchise, Inc. provides comprehensive assistance to its franchisees. Before opening, AtWork designates the Protected Territory, approves the Office location, and provides initial training programs to the Operating Partner, Manager, and initially hired employees. AtWork also provides online access to the Operations Manual and a list of specifications for equipment, supplies, advertising, inventory, and approved suppliers. After opening, AtWork continues to provide online access to the Operations Manual and advises on operations based on reports and inspections. AtWork processes all Worker Expenses, prepares and files payroll tax reports for Assigned Temporary Workers, and pays most Worker Expenses on behalf of the franchisee. AtWork accrues workers' compensation insurance premiums and costs, holds and administers a Risk Management Reserve, transmits customer invoices, and collects customer payments, remitting the Balance Payment to the franchisee monthly. AtWork issues refurbishment notices for the Office and may periodically set minimum prices for products or services. AtWork maintains and administers a Marketing Fund and may require franchisees and their staff to attend various training courses, trade shows, ongoing education, and annual/regional meetings. AtWork also connects franchisees to its central computer system with industry-specific software and provides a Franchise Advisory Council for guidance.
Initial Training Hours
41
Training Location
Our Corporate Office, Knoxville, TN
Ongoing Support
After opening, AtWork provides continuous support to its franchisees. AtWork ensures ongoing online access to the Operations Manual, which includes System Standards and operational procedures. AtWork processes all Worker Expenses, prepares and files all necessary payroll tax reports, and pays most Worker Expenses for Assigned Temporary Workers on behalf of the franchisee. AtWork accrues workers' compensation insurance premiums and costs, and manages a Risk Management Reserve. AtWork handles customer invoicing and payment collection, remitting the Balance Payment to the franchisee monthly. AtWork issues refurbishment notices for the Office to maintain System Standards and may set minimum prices for products or services. AtWork also maintains and administers a Marketing Fund for national advertising. Franchisees and their management team may be required to attend various training courses, trade shows, ongoing education, or certification programs, and annual or regional franchise owner meetings, not exceeding ten days per calendar year. AtWork also provides staffing software and connection to its central computer system, and a Franchise Advisory Council meets quarterly to advise on various topics.
Franchise Requirements
Ideal Candidate Profile
AtWork Franchise, Inc. seeks individuals who will operate their Personnel Services Business as a corporation, limited liability company, or general or limited partnership. The franchise requires one owner, who must be a natural person with at least a 51% ownership interest and voting power, to act as an "Operating Partner." This Operating Partner must have the authority to take legally binding actions on behalf of the franchisee. All owners are required to sign a personal guaranty. If the Operating Partner chooses not to supervise the business on a full-time basis, a Manager who has completed the Training Programs must be appointed to work full-time in a supervisory role. The Manager must meet specific minimum qualifications established by AtWork. The franchisee's Personnel Services Business must be the only business operated by the franchisee.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
Non-Exclusive
Staff Count
3
Territory Size Requirements
AtWork territories are defined by specific counties, streets, ZIP codes, governmental jurisdictions, or other natural boundaries, using data from the US Census Bureau or similar resources. Each Protected Territory will generally have a population of approximately 200,000 individuals. For major metropolitan markets, AtWork divides them into multiple territories. Additional territories will also typically have a minimum population of approximately 200,000 individuals.
Staffing Notes
AtWork Personnel Services Businesses are required to hire no fewer than two full-time internal staff members before opening. Additionally, the business must always be under the direct, day-to-day, full-time supervision of the Operating Partner. If the Operating Partner does not wish to supervise full-time, a Manager must be appointed to work full-time to supervise operations. AtWork may establish minimum qualifications for this Manager, which include completing the Training Programs and confirming no competitive business activities. AtWork requires franchisees to purchase at least 3 computers for their internal staff, along with an additional 2 to 3 workstations for applicant-testing purposes. The Operating Partner, Manager (if applicable), and initially hired employees must complete AtWork's Training Programs to its satisfaction, and franchisees are responsible for providing training programs for all other internal staff members.