Risk Score
Pending analysis
Investment Range
$110,000 - $151,000
Franchise Fee
$47,500
Total US Locations
1
Business Summary
GIGWORX operates a recruiting and staffing business that provides various talent acquisition services to third-party businesses. This includes contract, contract-to-hire, temporary, temporary-to-hire, and direct hire placements for administrative, general office, professional, and technical personnel. With approval, they can also offer hospitality and light industrial staffing. GIGWORX handles client invoicing, acts as the employer of record for temporary staff, manages their payroll, and provides workers' compensation insurance. The business utilizes a mobile application as part of its system.
Corporate History
GigWorx Franchising, LLC was formed in Delaware on May 22, 2023, and began offering GIGWORX franchises in September 2023. The brand itself has a longer history, as its affiliate, GigWorx Healthcare, LLC, has been operating a similar recruiting and staffing business under the GIGWORX trademarks since August 2018.
Financial Overview
Investment Range
$110,000 - $151,000
Franchise Fee (Low)
$47,500
Franchise Fee (High)
$47,500
Royalty %
37%
Marketing %
1%
Equipment Costs (Low)
$5,500
Equipment Costs (High)
$19,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GigWorx Franchising, LLC is a new company, formed in May 2023, and had not commenced planned principal operations as of December 31, 2023. The company reported a net loss of $3,616 for the period from inception to December 31, 2023, primarily due to interest expense. Its primary funding of $100,000 comes from a related party note payable, due in January 2028, bearing interest at Prime plus 1%. The auditors issued an unqualified opinion, indicating the financial statements fairly present the company's financial position. However, due to its short operating history and reliance on related party funding, potential franchisees should consider the inherent risks.
Financing Details
GigWorx does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees are solely responsible for securing their own funding from third-party lenders.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
1,250
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
GIGWORX has no litigation history that is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
GIGWORX has no bankruptcy history to disclose in Item 4 of the FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their GIGWORX franchise, franchisees must provide 180 days' written notice, comply with all material provisions of their current franchise agreement (including monetary obligations and operating standards), maintain possession of the business premises, and make reasonable capital expenditures to remodel or modernize the business to current brand standards. They must also ensure that they (or an approved Principal Owner) and the Branch Manager complete any required new or refresher training, sign GIGWORX's then-current franchise agreement (without paying an Initial Franchise Fee, and with the same Franchisor Share), pay a $5,000 renewal fee, sign a general release of claims, and be in compliance with their minimum performance requirements.
Training & Support Program
Franchisor Assistance
Before opening, GIGWORX assists with site evaluation and selection, provides prototype plans and specifications, conducts an initial training program, grants access to its confidential Operations Manual, and provides a list of approved products and suppliers. Once open, GIGWORX offers ongoing advisory services related to operations, marketing, and sales. It also provides periodic updates to the Operations Manual, handles all client invoicing, serves as the employer of record for all Temporary Staffing Associates, pays them, and maintains their workers' compensation insurance. GIGWORX also operates a Brand Fund for system-wide marketing efforts.
Initial Training Hours
120
Training Location
Online/virtual
Ongoing Support
After opening, GIGWORX provides ongoing advisory services for operational issues, including services offered, marketing assistance, sales promotion programs, and general operating procedures. Franchisees receive periodic updates to the Operations Manual. GIGWORX also manages client invoicing, acts as the employer of record for all Temporary Staffing Associates, handles their payroll, and maintains workers' compensation insurance for them. A Brand Fund is managed by GIGWORX for system-wide advertising. Franchisees and their Branch Managers may be required to attend supplemental and refresher training programs. GIGWORX also strongly encourages attendance at annual franchise conventions and meetings.
Franchise Requirements
Ideal Candidate Profile
GigWorx seeks actively involved individuals who can serve as their own Branch Manager or provide strong oversight to a hired Branch Manager. Ideal candidates must be prepared to hire, train, and maintain a staff that includes a Branch Manager, a Salesperson, and a Recruiter. These key personnel, including the franchisee or Principal Owner, must successfully complete GigWorx's initial training program. Candidates should demonstrate strong business judgment, adhere to good business practices, and comply with all applicable laws. They must also be committed to the full-time supervision of the business, ensuring that the Branch Manager, if a third party, dedicates full-time effort and does not engage in conflicting business activities. Franchisees, Principal Owners, and Branch Managers are required to sign non-compete and confidentiality agreements, emphasizing the importance of protecting GigWorx's proprietary information and market interests. GigWorx also conducts background checks to ensure compliance and good character.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staff Count
3
Territory Size Requirements
GIGWORX grants a territory surrounding the authorized business location. There is no minimum size for a territory, but typically it will include a population of between 50,000 to 250,000 people. The minimum population for any territory is 50,000 people.
Staffing Notes
For a single GIGWORX Business, the franchisee must hire one Branch Manager (who can be the owner if approved), one Salesperson, and one Recruiter. All three must attend and successfully complete the initial training program before the business opens. For franchisees developing multiple territories, additional groups of one Salesperson and one Recruiter must be hired and trained for each new territory by specific anniversary dates. The Branch Manager is required to supervise the business day-to-day on a full-time basis and cannot have other conflicting management responsibilities. If a third-party serves as the Branch Manager, the Principal Owner must still remain actively involved in overseeing operations. GIGWORX conducts background checks on the franchisee, principals, and key staff members.