Sanford Rose Associates Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$11,400 - $14,800
Franchise Fee
$7,500
Total US Locations
172
Business Summary
SANFORD ROSE ASSOCIATES operates an executive search and recruiting business that assists client companies in filling critical position openings, typically on a direct-hire basis, but sometimes on a temporary or contract basis. The client company pays the fee. SANFORD ROSE ASSOCIATES encourages its franchise offices to specialize in a particular industry sector or functional discipline and grants them the right to develop business and recruit candidates globally without territorial limitation. The business primarily conducts client and candidate communications by telephone and e-mail, supplemented by face-to-face meetings as needed.
Corporate History
Sanford Rose Associates International, LLC (SRAI) is a Texas limited liability company that converted from Sanford Rose Associates International, Inc. on December 31, 2023. SRAI was initially formed as SRA International, Inc., an Ohio corporation, on November 24, 1992, to acquire the assets of its predecessor, Sanford Rose Associates International, Inc. The original predecessor company opened its first office in Akron, Ohio, in 1959 and began franchising its business format under the Sanford Rose Associates name in 1970. SRAI's sole business purpose since 1992 has been to operate, support, and grow a network of franchise offices that provide executive search and recruiting services.
Financial Overview
Investment Range
$11,400 - $14,800
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$7,500
Royalty %
5.5%
Equipment Costs (Low)
$1,800
Equipment Costs (High)
$3,600
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
SANFORD ROSE ASSOCIATES International, LLC's financial statements for 2024 and 2023 were audited and received an unqualified opinion, indicating they fairly present the company's financial position. The company reported a net income of $1,130,049 in 2024. As of December 31, 2024, the overall Member's Equity for SANFORD ROSE ASSOCIATES International, LLC was $62,712. However, supplementary information shows that two of its brands, Dimensional Search and NLP, had member's equity deficits of $1,415,186 and $1,348,277, respectively, while the SRA brand had a positive equity of $2,826,175. Total liabilities for the company were $4,339,510, significantly higher than the total Member's equity.
Financing Details
SANFORD ROSE ASSOCIATES does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure all necessary funding from third-party sources.
Performance Metrics
Total US Locations
172
Franchised Units
172
Corporate Units
0
Avg Square Footage
800
Franchising Since
1970
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
In November 2019, SANFORD ROSE ASSOCIATES International, LLC entered into an Assurance of Voluntary Compliance with the Illinois Attorney General. This agreement addressed the company's unintentional failure to register its franchise offerings in Illinois before signing three franchise agreements with residents there starting in January 2016. As part of the agreement, SANFORD ROSE ASSOCIATES agreed to stop offering franchises in Illinois without proper registration, offer rescission to affected Illinois franchisees, disclose the agreement in its FDD, and pay $6,000 to the State of Illinois. Other than this one matter, SANFORD ROSE ASSOCIATES has no other reportable litigation.
Bankruptcy History
SANFORD ROSE ASSOCIATES has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
1 years
Renewal Conditions
To renew their franchise agreement, SANFORD ROSE ASSOCIATES franchisees must provide at least six months' written notice of their intent to renew before the agreement's anniversary date. They must also be in good standing, meaning they are current on all financial obligations to SANFORD ROSE ASSOCIATES, their vendors, and are not in material default of any agreement. Franchisees are also required to sign SANFORD ROSE ASSOCIATES' then-current standard conversion franchise agreement, which may contain materially different terms, and execute a general release of claims against SANFORD ROSE ASSOCIATES and its affiliates.
Training & Support Program
Franchisor Assistance
SANFORD ROSE ASSOCIATES provides its franchisees with the right to operate an executive search and recruiting business using its network and trademarks. Before opening, the franchise offers one SRAI email address for one year at no cost and requires approval for the office location. After opening, SANFORD ROSE ASSOCIATES offers continuing guidance on search business matters, including advertising, marketing, new techniques, and business planning, primarily through phone and internet communication. This includes Leadership Coaching and business planning focused on office growth. The franchisor monitors franchisees for compliance with standards, maintains a company website, and allows franchisees to use a website built from an SRAI template and a unique email address. Franchisees receive advice on effective advertising and can run their own approved advertising programs. SANFORD ROSE ASSOCIATES also negotiates group purchase programs with vendors for the benefit of franchisees.
Initial Training Hours
1
Training Location
Online/virtual (Zoom)
Ongoing Support
After opening, SANFORD ROSE ASSOCIATES provides ongoing guidance and advice on various search business matters, including advertising, marketing, new techniques, operating methods, and business procedures. This support includes Leadership Coaching and business planning aimed at office growth and development, delivered primarily via phone, internet, and other remote communication. The franchisor monitors franchisees for compliance with standards and allows franchisees to use a website built from an SRAI template. Franchisees also receive weekly Zoom meetings for the first month after onboarding, followed by as-needed meetings. They can attend Next Level Recruiting facilitated training and regularly hosted webinars and training sessions. Additionally, SANFORD ROSE ASSOCIATES may offer Group Purchase/Preferred Vendor Programs and conduct Ongoing Satisfaction Surveys.
Franchise Requirements
Ideal Candidate Profile
SANFORD ROSE ASSOCIATES seeks individuals or entities that are established executive search and recruiting firms. To qualify as a franchisee, candidates must possess sufficient prior experience in executive search and recruiting services that are similar or identical to the SANFORD ROSE ASSOCIATES franchise business. This extensive experience means that SANFORD ROSE ASSOCIATES does not need to provide training to the franchisee on how to conduct the core business operations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
SANFORD ROSE ASSOCIATES territories are defined as a one-quarter mile radius from the franchisee's approved office location. The territory assignment primarily provides the franchise with a unique identity within the SANFORD ROSE ASSOCIATES network, such as "SANFORD ROSE ASSOCIATES® – [Territorial Name]," rather than protecting against widespread competition.
Staffing Notes
SANFORD ROSE ASSOCIATES franchisees are solely responsible for their employees and all employment-related decisions, including wages, benefits, hours, duties, supervision, hiring, and firing. SANFORD ROSE ASSOCIATES does not exercise control over these essential terms. Franchisees must inform their employees in writing that SANFORD ROSE ASSOCIATES is not a 'joint employer.' A General Manager, who may be the franchisee or another appointed person, must directly supervise the franchised business, though the General Manager is not required to be a shareholder.