Gecko Executive Hospitality Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$54,249 - $85,185
Franchise Fee
$35,000
Total US Locations
106
Business Summary
Gecko Hospitality operates a business that provides management recruiting services. Franchisees can choose to specialize in management recruiting for the restaurant industry under the trade name GECKO HOSPITALITY® or for the broader hospitality industry under the trade name GECKO EXECUTIVE HOSPITALITY®. Additionally, franchisees may offer optional services like Creative Advertising, Management Career Fairs, and Management Open House services to clients looking to hire management personnel.
Corporate History
Gecko Hospitality's predecessor, Gecko Development Corporation, was initially formed in Illinois on May 9, 2003, to franchise management recruiting for the restaurant industry under the GECKO HOSPITALITY® trademark. In June 2013, the assets of this predecessor merged into the current Gecko Development Corporation, a Florida corporation incorporated on April 20, 2013, as part of a relocation to Fort Myers, Florida. The current Gecko Development Corporation continued offering GECKO HOSPITALITY® franchises and expanded in 2008 to include the hospitality segment, which was then divided into two separate franchise offerings in 2012: GECKO HOSPITALITY® for the restaurant industry and GECKO EXECUTIVE HOSPITALITY® for the broader hospitality industry. On July 25, 2023, Gecko Development Corporation and its affiliate Gecko Hospitality, Inc. were acquired by Triumph Talent Solutions, LLC, which is a subsidiary of Triumph Higher Education Group, LLC. An earlier affiliate, Gecko Hospitality, LLC, started operating the first GECKO HOSPITALITY® business in 2000, sold its company-owned businesses by 2010, and merged its assets into Gecko Hospitality, Inc. in June 2013.
Financial Overview
Investment Range
$54,249 - $85,185
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$50,000
Royalty %
10%
Marketing %
4%
Equipment Costs (Low)
$1,800
Equipment Costs (High)
$3,500
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Gecko Development Corporation appears to be in a sound financial position, with its independent auditors providing an Unqualified Opinion on its financial statements for 2023, 2022, and 2021. This indicates that Gecko Development Corporation's financial statements fairly represent its financial position and cash flows in all material respects. No concerns about its ability to continue as a going concern were noted by the auditors. As of December 31, 2023, Gecko Development Corporation reported cash of $142,206, total assets of $256,156, and total liabilities of $20,000, with shareholders' equity of $236,156. The company also generated net income of $87,187 in 2023. The financial statements disclose related-party loans receivable and payable, both without interest or specific repayment terms, which are common in privately held companies.
Financing Details
Gecko Development Corporation does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own loans, leases, or other financial obligations. The franchisor also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
106
Franchised Units
106
Corporate Units
0
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Gecko Development Corporation has no litigation history to report. No administrative, criminal, or civil actions are currently pending or have been concluded against the franchisor, its predecessors, its affiliates, or any individuals identified in the FDD, according to Item 3.
Bankruptcy History
Gecko Development Corporation has no bankruptcy history to disclose. Item 4 of the FDD states that no bankruptcy information is required to be disclosed for the franchisor, its affiliates, or key personnel.
Agreement Terms
Initial Term
8 years
Renewal Term
5 years
Renewal Conditions
To renew their Gecko Hospitality or Gecko Executive Hospitality franchise, franchisees must provide the franchisor with written notice of their intent to renew between 6 and 12 months before the current term ends. They must be in good standing, meaning they are not in default of any agreements with the franchisor and have not received three or more default notices during the current term. All money owed to the franchisor and its affiliates must be paid. Franchisees will need to sign the then-current standard franchise agreement, which may include different terms, such as royalty fees and territory size. They must also sign a general release of claims against the franchisor, complete any required retraining, and update their business equipment, technology, and computer system to meet current standards. A renewal fee, equal to 10% of the then-current initial franchise fee for new franchisees, is also required.
Training & Support Program
Franchisor Assistance
Before opening, Gecko Hospitality provides franchisees with a license to use its trademarks and assists with selecting equipment, operating supplies, and signs, offering a list of approved suppliers. Franchisees also receive initial training for up to two people at the corporate office in Fort Myers, Florida, for approximately two weeks, covering the GDC Restaurant System or GDC Hospitality System. The franchisor also loans an Operations Manual and offers general assistance with pre-opening promotional programs. After opening, Gecko Hospitality continues to provide ongoing support including updates to the Operations Manual, individual or group guidance through visits, phone calls, newsletters, or electronic communications, and access to system-wide programs. Franchisees can receive available advertising materials at cost, and additional training programs may be offered, though travel expenses for attendance are the franchisee's responsibility. Franchisees must also attend up to two mandatory annual meetings and participate in conference calls. Gecko Hospitality refers candidates in the franchisee's territory, administers national/regional/multi-state client accounts, and provides all client billing services for the franchised business.
Initial Training Hours
61
Training Location
Fort Myers, Florida
Ongoing Support
After opening their Gecko Hospitality or Gecko Executive Hospitality business, franchisees receive ongoing support including continuous access to and updates for the Operations Manual and other training aids. Gecko Hospitality provides periodic individual or group advice and assistance through personal visits, telephone, electronic transmissions, newsletters, or bulletins, covering areas like sales, profits, marketing, employee training, customer service, and client relations. Franchisees can participate in system-wide programs and receive advertising material at cost. The franchisor may also offer additional training programs, workshops, and seminars, with franchisees responsible for their own travel and living expenses for mandatory annual meetings and required conference calls. Franchisees are required to complete at least 10 hours of continuing recruiting education annually at their own cost. Gecko Hospitality also tests new services, equipment, or technologies and makes approved ones available to franchisees, refers candidates in their territory, and administers national, regional, and multi-state client accounts. The franchisor provides all client billing services, deducting fees and remitting the balance to the franchisee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Gecko Hospitality territories are defined based on population and geographic boundaries. For both GECKO HOSPITALITY® and GECKO EXECUTIVE HOSPITALITY® franchises, territories are granted with a minimum population of 2,000,000 people and a maximum population of 6,250,000 people. The initial franchise fee is calculated based on the population size of the granted territory. Franchisees retain rights to their territory even if the population increases, as long as they comply with their franchise agreement.
Staffing Notes
Gecko Hospitality requires that the franchisee, if an individual, or one of the principal owners, if a business entity, must devote a full-time equivalent of at least 40 hours per work week (Monday through Friday, 9:00 a.m. to 5:00 p.m.) to manage or act as a recruiter for the franchised business. This individual cannot perform this function for another Gecko Development Corporation franchise simultaneously. Any person actively involved in the management or operation of the franchised business must also commit at least 40 hours per week and cannot hold other employment or outside contract work during business hours. Franchisees must employ at least one full-time recruiter, which may be the owner, for each franchise they operate. If a territory has a population exceeding 6,000,000 people, an additional full-time recruiter must be employed. Recruiters must work exclusively for the franchisee and are required to have two years of relevant experience in management recruiting and either restaurant or hospitality management. If the franchised business lacks the required number of trained recruiters for 30 days or more, Gecko Development Corporation has the right to place candidates in the territory and retain a portion of the fees. If an owner operates multiple Gecko Development Corporation franchises, they may only act as a recruiter for one franchise.