Global Recruiters Network Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$61,250 - $128,550
Franchise Fee
$40,000
Total US Locations
178
Business Summary
Global Recruiters Network, Inc. offers franchises to operate permanent placement service businesses. These businesses, operating under the GLOBAL RECRUITERS NETWORK® service mark, focus on placing full-time employees for various clients across different business and industry sectors. Franchisees manage offices where these recruitment services are performed.
Corporate History
Global Recruiters Network, Inc. (GRN) was incorporated in Delaware in December 2002 and began operating as a franchise organization in the same month. GRN's parent company is RFB Holdings, Inc., incorporated in November 2002, which owns all of GRN's stock. RFB Holdings also owns BBDP, Inc., formed in March 1995, which develops and owns the CAPSX Software® and other GRN software. Additionally, YGI, Inc., an affiliate incorporated in August 2016, offers accounting, tax, and business strategy consulting services to franchisees. Another affiliate, Quantum Leap Holdings, LLC, formed in December 2006 and doing business as 401K4NOW, assists potential franchisees with structuring and funding their franchise using 401k plans. GRN itself has no predecessors and has exclusively offered franchises for its permanent placement service businesses since January 2003, focusing on placing full-time employees.
Financial Overview
Investment Range
$61,250 - $128,550
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Royalty %
10%
Equipment Costs (High)
$14,000
Working Capital
$22,650
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Global Recruiters Network, Inc. appears to be in sound financial health. Its financial statements for 2023 and 2022 were audited with an unqualified opinion, meaning the auditors found them to be presented fairly. The company maintains positive working capital, with current assets exceeding current liabilities. In 2023, Global Recruiters Network, Inc. reported a small net loss of $10,328, compared to a net income of $628,583 in 2022. The auditors did not identify any conditions that raise substantial doubt about the company's ability to continue as a going concern. The company has also recorded uncertain tax positions as long-term liabilities.
Financing Details
Global Recruiters Network, Inc. offers limited indirect financing for the Initial Franchise Fee. Franchisees can pay the $50,000 Initial Franchise Fee by first paying a $10,000 Territory Deposit, with the remaining $40,000 balance due no later than 5 business days before the initial training program. This balance is formalized through an interest-free Promissory Note, though overdue payments will incur late charges and 18% annual interest. The Promissory Note can be prepaid without penalty. The franchisor also requires a personal guarantee from principals/owners if the franchise is assigned to a corporation or LLC. Beyond this, Global Recruiters Network, Inc. does not offer any other direct or indirect financing, nor does it guarantee franchisee notes, leases, or obligations. An affiliate, Quantum Leap d/b/a 401K4NOW, assists franchisees in structuring ownership to use 401k funds for financing, but this affiliate also does not provide direct financing or guarantees.
Performance Metrics
Total US Locations
178
Franchised Units
178
Corporate Units
0
Avg Square Footage
1,200
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Global Recruiters Network, Inc. has no litigation to report in Item 3 of its Franchise Disclosure Document, indicating a clean legal record for the franchisor and its management.
Bankruptcy History
Global Recruiters Network, Inc. has no bankruptcy history to report for itself or its key management personnel in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Global Recruiters Network, Inc. franchisees must meet several conditions. They must be in full compliance with their franchise agreement, the operations manual, and all other related agreements, and must have paid all monetary obligations on time throughout the initial term. Franchisees must also have updated their operational methods and office appearance to meet Global Recruiters Network, Inc.'s current standards, including any optional modifications they had not implemented earlier. They cannot have received two or more default notices in the two years prior to expiration. Additionally, franchisees need to renew their office lease or secure a new approved location without business interruption, renew their Workstation Network Support Agreement, and sign a general release. A renewal fee of up to $5,000 may also be required.
Training & Support Program
Franchisor Assistance
Global Recruiters Network, Inc. provides comprehensive support to its franchisees. Before opening, GRN assists with territory and office site selection, lease approval, and offers pre-training consultation on office layout, furniture, and licensing. It provides essential computer hardware (laptops, printer, router, headset) and software, including 10 user licenses for its proprietary CAPSX Software® and other GRN software programs, access to a video conferencing network, a standardized website, a 12-month subscription to HireEz, and access to the ZoomInfo database. Franchisees also receive an initial supply of printed materials and forms, along with access to the confidential Recruiter's Manual. Initial training involves a 15-day classroom program and a 15-day remote "Virtual Office" on-the-job training session. After opening, Global Recruiters Network, Inc. offers a 2-week "Foundation Learning" program for new staff, requires attendance at an annual Global Workshop (with registration fees covered for one attendee), examines business reports to provide advice, and furnishes field support services. It also continues to host franchisee websites, provide access to its online Resource Center, and offers ongoing computer system support.
Initial Training Hours
281
Training Location
Chicago, IL and Virtual Office
Ongoing Support
Global Recruiters Network, Inc. provides extensive ongoing support to its franchisees. This includes a 2-week live, interactive remote "Foundation Learning" program for new search consultants, assistants, and researchers. Franchisees are required to attend an annual 2-day Global Workshop, and optional regional meetings and seminars are also offered; registration fees for the Global Workshop and one regional meeting are covered by the monthly Operation Support Fee. Global Recruiters Network, Inc. also examines franchisee sales, marketing, and financial reports to offer advice on business and operational procedures. Field support services are provided on-site, off-site, by phone, or electronically, with costs covered by the Operation Support Fee. Additionally, franchisees have 24/7 access to the GRN Resource Center, which offers a collection of training, research, and consultation materials. The franchisor also continues to approve additional office locations and advertising materials.
Franchise Requirements
Ideal Candidate Profile
Global Recruiters Network seeks individuals who are committed to personally supervising and dedicating their best efforts to the operation of a permanent placement service business. The ideal candidate is a hands-on owner, actively involved in the day-to-day management and capable of staffing and training their office according to Global Recruiters Network standards. While the franchise can be assigned to a corporate entity, the initial agreement requires an individual signature, emphasizing personal responsibility. Candidates should possess a diverse skill set, significant experience, and a strong educational background, indicating an entrepreneurial spirit capable of operating and developing the business. They must also demonstrate financial capability to secure financing and operate from a commercial premises within 24 months of training completion, demonstrating a commitment to professional image and growth. They are also expected to adhere to strict operational standards and comply with all legal requirements, including equal opportunity employment.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Global Recruiters Network, Inc. franchisees are granted a defined geographic territory, which is typically described using physical boundaries like streets, highways, city, or county lines. Each territory is designed to encompass a population of approximately 25,000 people at the time the franchise agreement is signed.
Staffing Notes
Global Recruiters Network, Inc. requires its franchisees to staff their business with at least one full-time search consultant, search assistant, or researcher who must work from the office. The franchisee is expected to personally supervise the business and dedicate their best efforts to its operation. Each office must also have an approved Office Manager who has day-to-day management responsibility, exercises on-premises supervision, and personally participates in the direct operation. The franchisee may serve as the Office Manager. All Office Managers and new search consultants, search assistants, or researchers must complete the franchisor's Foundation Learning program. Additionally, specific performance metrics are outlined for search consultants and assistants for franchisees to qualify for a waiver of the Minimum Annual Royalty.