Patrice & Associates Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$105,100 - $121,050
Franchise Fee
$32,500
Total US Locations
184
Business Summary
Patrice & Associates Franchising, LLC operates a recruiting business that specializes in providing management candidates primarily to the retail, restaurant, and hospitality industries, as well as other sectors. Patrice & Associates grants franchisees access to a proprietary database of hospitality management candidates and positions, along with a billing and collection service. The franchise also provides training, tools, and support including a personalized local webpage, specialized marketing training, and a mentoring program. Franchisees, referred to as Recruiters, work to solicit and place qualified job applicants with client businesses seeking to fill positions.
Corporate History
Patrice & Associates (P&A Agency) was founded by Patrice Rice in Dunkirk, Maryland, in 1989, beginning as a recruiting business that specialized in providing management candidates to the retail, restaurant, and hospitality industries, among others. The current franchisor entity, Patrice Franchising, LLC, was formally organized on August 15, 2022. This new entity was established to acquire the assets and operations of the Patrice & Associates franchise system from its predecessor, Patrice & Associates Franchising, Inc. (PAF), and to continue offering and selling P&A Agency franchises. Patrice Franchising, LLC began its franchising operations in December 2022. Its predecessor, PAF, had previously offered P&A Agency franchises from 2008 until December 2022 and also ran an area representative program from 2017 to December 2022. Notably, Patrice Franchising, LLC itself has never directly owned or operated a P&A Agency.
Financial Overview
Investment Range
$105,100 - $121,050
Franchise Fee (Low)
$32,500
Franchise Fee (High)
$65,000
Royalty %
10%
Marketing %
2%
Equipment Costs (Low)
$800
Equipment Costs (High)
$1,500
Working Capital
$5,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Patrice Franchising, LLC appears to be in a strong financial position, according to its audited financial statements. The company showed a significant profit in 2024 of over $3.6 million and in 2023 of over $2.1 million, which indicates growing profitability after an initial loss year in 2022 (its inception year). Patrice Franchising, LLC also maintains positive and increasing working capital, with over $5.8 million in 2024 and $3.7 million in 2023. The independent auditors did not identify any concerns about Patrice Franchising, LLC's ability to continue its operations, suggesting a stable financial outlook for the franchise system.
Financing Details
Patrice & Associates Franchising, LLC does not offer any direct or indirect financing options. Franchisees will need to secure their own funding, as the franchisor also does not guarantee any notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
184
Franchised Units
184
Corporate Units
0
Avg Square Footage
275
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Patrice & Associates Franchising, LLC, or its predecessor Patrice & Associates Franchising, Inc. (PAF), has been involved in three disclosed legal matters. The Mark Fischer case, filed in July 2017 against PAF, involved allegations of fraudulent misrepresentation and violations of the Minnesota Franchise Act. PAF counterclaimed for breach of agreement and interference. Arbitration concluded in February 2019, awarding Fischer a refund of his franchise fees with prejudgment interest but denying other damages, and all other claims were denied or dropped. The Daniel Harris and Hospitality Partners, LLC case was filed in January 2018 against PAF and its executives, alleging New York State Franchise Sales Act violations, fraud, and negligent misrepresentation. The claimants sought rescission and monetary damages. The case settled confidentially in July 2018, with PAF refunding $69,000 in fees and training costs, and both parties exchanging mutual releases without admitting wrongdoing. Lastly, in December 2019, PAF filed for arbitration against an area representative, McCoury Enterprises, Inc., seeking a declaratory judgment for breaches of their area representative and franchise agreements. This case settled in May 2020, with PAF paying McCoury $125,000, and both parties mutually agreeing to terminate their agreements and exchange releases.
Bankruptcy History
Patrice & Associates Franchising, LLC has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Patrice & Associates Franchising, LLC franchisees must notify the franchisor in writing between 180 and 270 days before their current term expires. They are required to be in good standing, meaning they must not be in default under any existing agreements. Franchisees must also sign the then-current form of franchise agreement and all related documents, including a General Release. Additionally, they must upgrade their equipment to comply with the franchisor's latest standards and specifications. The franchisor reserves the right to refuse renewal if the franchisee has received two or more default notices during the current term.
Training & Support Program
Franchisor Assistance
Before opening, Patrice & Associates Franchising, LLC provides franchisees with access to a confidential Brand Standards Manual, written specifications for required goods and services, and a list of approved suppliers. The franchisor sets up and launches a personalized Microsite and grants access to the proprietary P&A Database. Franchisees also receive an initial training program, which includes executive recruiting training. During operation, Patrice & Associates Franchising, LLC provides ongoing access and support for the P&A Database, a 90-day mentoring program with daily one-on-one calls for new franchisees, and twice-weekly group calls for the first six weeks. The franchisor offers guidance and recommendations to improve business operations, administers a brand and system development fund, and handles all billing and collection services. Patrice & Associates Franchising, LLC maintains a corporate website and provides ongoing maintenance and support for the franchisee's Microsite. Optionally, the franchisor may negotiate discounted purchase agreements with suppliers, hold periodic conferences, and provide additional training upon request (for a fee). The franchisor also offers an optional service to assist with the resale of a P&A Agency.
Initial Training Hours
50.5
Training Location
Online/virtual
Ongoing Support
Patrice & Associates Franchising, LLC provides extensive ongoing support for its franchisees. This includes continuous access to the proprietary P&A Database and associated maintenance. Franchisees receive a 90-day mentor program with daily one-on-one calls during business days for coaching and support. For the first six weeks, new franchisees also participate in two group conference calls each week with a franchisor representative to provide additional guidance. The franchisor offers executive recruiting training, provides general guidance and recommendations to improve operations, and administers the brand and system development fund. Additionally, Patrice & Associates Franchising, LLC handles all billing and collection services for the franchisees and maintains a corporate website and individual Microsites with ongoing maintenance and support. The franchisor may also provide ongoing business development training on various topics.
Franchise Requirements
Ideal Candidate Profile
Patrice & Associates is looking for individuals who can commit to managing and operating their recruiting agency effectively. Ideal candidates must be approved by Patrice Franchising, LLC and successfully complete all required training programs. While franchisees have the option to hire a Manager for day-to-day supervision, the Managing Owner must maintain at least a 51% ownership interest and either dedicate full-time efforts or ensure their appointed Manager does. Success in a Patrice & Associates franchise is significantly tied to the franchisee's ability to develop their own client base, with a recommendation to spend a minimum of 20 hours per week on new business development. Franchisees are encouraged to aim for a balanced placement mix, with approximately 50% of clients sourced from corporate relationships and 50% from self-generated efforts. Strong management and supervisory skills are essential, especially when building a team of Recruiters.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Absentee Allowed
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Patrice & Associates Franchising, LLC typically defines territories using one or more adjacent zip codes. Most territories include a population of approximately 250,000 people, with population determined by United States Department of Commerce Census Bureau data and territory mapping software.
Staffing Notes
Patrice & Associates Franchising, LLC requires that each P&A Agency be under the direct, full-time, day-to-day supervision of either the Managing Owner or a trained Manager. Franchisees may hire one or more Recruiters to provide recruitment services, who must complete required training and sign a Brand Protection Agreement, and be supervised by the Managing Owner or a trained Manager. Franchisees are responsible for determining their own appropriate staffing levels, hiring, training, and supervising all employees. All employees are considered employees of the franchisee, not the franchisor, and franchisees must inform their employees of this by using their legal business entity name on employment documents and requiring employees to sign a prescribed acknowledgment form.