Labor Finders Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$153,635 - $354,200
Total US Locations
176
Business Summary
Labor Finders International, Inc. offers temporary industrial employment services under the name LABOR FINDERS. This business provides skilled, semi-skilled, and unskilled workers to the business community.
Corporate History
Labor Finders International, Inc. was originally incorporated in Florida in 1975 as Action Temporary Services, Inc. It later reincorporated in 1992 as Temporary Solutions, Inc., and then officially changed its name to Labor Finders International, Inc. on December 4, 1992. The company began offering LABOR FINDERS, LABOR FORCE, and OFFICE FORCE franchises in June 1992, though it discontinued offering LABOR FORCE franchises that same year and OFFICE FORCE franchises in December 1997. Labor Finders International, Inc. focuses exclusively on temporary industrial employment services and does not engage in any other business activities.
Financial Overview
Investment Range
$153,635 - $354,200
Franchise Fee (High)
$20,000
Royalty %
3.5%
Equipment Costs (Low)
$12,890
Equipment Costs (High)
$55,200
Working Capital
$135,323
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Labor Finders International, Inc. appears to be in sound financial health, with its auditors providing an unqualified opinion on its consolidated financial statements for the years ended December 31, 2023, and 2022, indicating fair presentation. The company's management is responsible for evaluating potential conditions or events that could raise substantial doubt about its ability to continue as a going concern, and the auditors did not identify such concerns. In 2023, Labor Finders International, Inc.'s total assets stood at $53,053,703, with shareholders' equity at $34,381,985. The company reported a net income of $2,905,880 in 2023, following $4,662,196 in 2022. While net cash decreased in 2023 due to investing activities, including a significant business acquisition for $12,346,053 cash, it saw an increase in 2022. The company also secured new long-term debt and shareholder loans in 2023 to support its operations and growth, such as the acquisition of an affiliate's locations.
Financing Details
Labor Finders International, Inc. offers two types of discretionary financing to franchisees: payroll funding and working capital loans. For payroll funding, Labor Finders International, Inc. may finance up to 75% of a franchisee's gross accounts receivable that are less than 60 days old, provided the client's credit is pre-approved. The interest rate on these loans is a floating rate of three percent above the annual prime rate published in the Wall Street Journal, payable monthly. Additionally, a weekly service fee of five percent of the principal amount of loans made the previous week is charged. For working capital, Labor Finders International, Inc. may provide loans to established franchisees, covering up to 100% of increased costs for temporary payroll expenses during growth periods. These working capital loans typically require fixed monthly installments over one to five years, with interest at a fixed annual rate of the then-current prime rate plus two percent. All loans are secured by the franchisee's accounts receivable and ownership interests in the franchise business, and require personal guarantees from all individual owners and their spouses.
Performance Metrics
Total US Locations
176
Franchised Units
83
Corporate Units
92
Avg Square Footage
1,100
Franchising Since
1992
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Labor Finders International, Inc. has no pending or concluded litigation required to be disclosed against LFI, its affiliate, or its management personnel. Additionally, Labor Finders International, Inc. did not initiate any lawsuits against franchisees at the end of the last fiscal year, indicating a clear legal record for the company.
Bankruptcy History
Labor Finders International, Inc. has no bankruptcy history to report for itself, its affiliates, or any of its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Labor Finders International, Inc. franchisees must meet several conditions: they must be in good standing, meaning they have not been repeatedly in default during the past year. Franchisees also need a written commitment for a renewal or a new lease for a minimum of five years from at least one current operating office in their territory. They must provide written notice of their intention to renew between four and six months before the current term ends. Additionally, all monetary obligations owed to Labor Finders International, Inc. and its affiliates must be satisfied, and the franchisee must sign a general release of claims. Finally, franchisees are required to sign the then-current standard form of franchise agreement, which may contain terms and conditions different from their original agreement.
Training & Support Program
Franchisor Assistance
Labor Finders International, Inc. provides extensive support to its franchisees both before and after opening. For pre-opening, Labor Finders International, Inc. offers initial training for two people at no charge in Palm Beach Gardens, Florida, or another agreed-upon location. It provides a set-up package with master artwork for stationery and advertising, and loans a copy of its Operations Manual. Franchisees also receive a license to use Labor Finders International, Inc.'s proprietary computer software, LF Connect mobile app, and customer portal, along with server hosting. Assistance with evaluating possible office locations is available upon request, and franchisees can purchase forms and promotional supplies from Labor Finders International, Inc. During operation, Labor Finders International, Inc. provides ongoing support including telephone software support and business consultation, periodic notifications of new developments, cooperation in obtaining account leads and contracts, assistance with promotional campaigns, and periodic analyses of the franchisee's business performance. Labor Finders International, Inc. also offers counseling on insurance, payroll taxes, and unemployment claims, conducts periodic office visits, and provides other support as deemed necessary. Updates to manuals and software are provided, and assistance with evaluating locations for additional offices is available. Labor Finders International, Inc. reviews sign specifications and may provide a temporary manager if the franchisee dies or becomes incapacitated.
Initial Training Hours
80
Training Location
Corporate headquarters in Palm Beach Gardens, Florida, or an affiliate-owned location closest to the franchisee for on-the-job training
Ongoing Support
After opening, Labor Finders International, Inc. franchisees receive ongoing support including reasonable telephone access to corporate personnel for business consultations and software support during business hours. Labor Finders International, Inc. provides periodic notifications of new developments and techniques, cooperates in obtaining account leads and contracts for temporary personnel services, and assists in developing promotional campaigns and materials. Franchisees also receive periodic analyses of their promotional programs, financial status, and other business aspects based on submitted data. Labor Finders International, Inc. offers counseling and assistance regarding insurance, payroll taxes, and unemployment claims. Additionally, Labor Finders International, Inc. conducts periodic visits to the franchisee's office and provides any other support it deems advisable or necessary. Updates to the Operations Manual and Software Manuals are provided via the internet, and Labor Finders International, Inc. offers forms and promotional supplies for purchase. Assistance with evaluating possible locations for additional offices is also available. In the event of a franchisee's death or permanent incapacity, Labor Finders International, Inc. may, at its option, provide a temporary manager for the business.
Franchise Requirements
Ideal Candidate Profile
Labor Finders is seeking franchisees who are dedicated to hands-on operation, providing personal and continuous effort, supervision, and attention to their business. Ideal candidates should demonstrate strong educational, personal, managerial, and business standards, coupled with good moral character and a solid reputation. They must possess the aptitude and ability to successfully run a temporary industrial employment service, backed by adequate financial resources, financial responsibility, and a favorable credit rating. Additionally, prospective franchisees should be committed to adhering to the Labor Finders system and should not have any direct or indirect ties to competitors. For legal entities, a designated representative is required to complete initial training and oversee employee instruction.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
hands-on
Territory Type
exclusive
Staff Count
2
Territory Size Requirements
Labor Finders International, Inc. grants franchisees an exclusive territory, usually consisting of one or more contiguous counties within a state or states. Franchisees are required to establish and maintain one active franchise office for every 500,000 people residing in their territory, based on the current population. If a franchisee fails to meet this 'Penetration Goal', the territory may be reduced. For territories with an original population of 5 million or less, the reduced territory will be a 20-mile radius around each operating office. For territories with an original population over 5 million, the reduced territory will be a 10-mile radius around each operating office. The general locations for opening additional offices within the territory are mutually agreed upon by the franchisee and Labor Finders International, Inc.
Staffing Notes
Each Labor Finders International, Inc. office must be supervised on a day-to-day basis by an office manager, who can be an individual franchisee or the designated representative of an entity franchisee for one office. The appointment of an office manager does not require Labor Finders International, Inc.'s prior approval, but the franchisor must be notified within five days of the appointment. Office managers are not required to hold an equity interest in the business. Franchisees must also have at least one qualified staff member on duty during business hours.