The Blue Collar Recruiter Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$72,650 - $104,750
Franchise Fee
$39,600
Total US Locations
5
Business Summary
Blue Collar Recruiter offers franchises for a staffing and recruiting business. This business focuses on placing skilled tradespeople, such as licensed plumbers, electricians, and HVAC technicians, with employers for both temporary and permanent employment. Franchisees operate a home-based or office-based employment service to provide these staffing solutions.
Corporate History
The Blue Collar Franchise Group, LLC, doing business as Blue Collar Recruiter, was formed in Texas in August 2022. The company plans to begin offering franchises upon the issuance of its Disclosure Document in May 2024. Blue Collar Recruiter is an affiliate of The Blue Collar Recruiter, LLC (BCR Austin), which was organized in Texas in February 2020 and operates a company-owned staffing and recruiting agency similar to the franchised businesses. The parent company, Latuff Management Company, LLC, was organized in Texas in December 2011.
Financial Overview
Investment Range
$72,650 - $104,750
Franchise Fee (Low)
$39,600
Franchise Fee (High)
$49,500
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$5,650
Equipment Costs (High)
$12,750
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
As of December 31, 2023, Blue Collar Recruiter reported a members' deficit of ($169,538). The company relies on short-term loans from shareholders ($3,000) and a related-party line of credit ($75,290). Auditors provided an unqualified opinion on the financial statements, indicating they present fairly the financial position in accordance with GAAP.
Financing Details
Blue Collar Recruiter may offer direct financing for a portion of the initial franchise fee and grand opening marketing fee. Franchisees would need to pay at least 50% of these fees upfront. The remaining financed amount would have a maximum term of 24 months from the first payment date, with an interest rate of 12% per year or the maximum rate allowed by law, whichever is less. Payments are due monthly via ACH along with the royalty fee. Prepayments are permitted without penalty. This financing requires a Guaranty of Payment and Personal Guarantee from all owners of the franchise entity. Blue Collar Recruiter does not guarantee franchisee notes, leases, or obligations to third parties.
Performance Metrics
Total US Locations
5
Franchised Units
4
Corporate Units
1
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Blue Collar Recruiter has no litigation history to report. Item 3 of the FDD states that no litigation information is required to be disclosed for the franchisor or any person identified in Item 2.
Bankruptcy History
Blue Collar Recruiter has no bankruptcy history to report. Item 4 of the FDD explicitly states that no bankruptcy information is required to be disclosed for the franchisor or any person identified in Item 2.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, Blue Collar Recruiter franchisees must provide written notice between six and twelve months before the current term expires. They must not be in default, have substantially complied with the agreement throughout the term, and made all payments on time. Additionally, franchisees are required to sign a new franchise agreement (which may have materially different terms), refurbish their business to meet current standards, execute a general release of claims against the franchisor, complete any required additional training, secure the business site for the new term, and pay a $10,000 successor fee.
Training & Support Program
Franchisor Assistance
Blue Collar Recruiter provides pre-opening assistance, including approving the franchised business location and furnishing an initial training program. They will also provide access to the confidential Operations Manual and assist with grand opening marketing. Ongoing support includes access to advertising and promotional materials (with costs potentially passed on or charged to the Brand Fund), additional training on new methods, marketing, equipment, and products (which may include mandatory annual meetings), and updates to the Operations Manual. Blue Collar Recruiter may also establish and administer a Brand Fund and review local advertising proposals. Franchisees may be required to participate in a Franchisee Advisory Council.
Initial Training Hours
40
Training Location
Virtual/Austin, Texas
Ongoing Support
Blue Collar Recruiter provides continuing assistance to franchisees during their operation. This includes access to advertising and promotional materials (with costs potentially charged to the franchisee or the Brand Fund), additional training programs on new methods, marketing techniques, equipment, and products (which may involve mandatory annual meetings or conventions at the franchisee's cost), and updates to the Operations Manual. The franchisor may establish and administer a Brand Fund and will review any local or regional advertising proposed by the franchisee. Franchisees may also be required to participate in an advisory council.
Franchise Requirements
Ideal Candidate Profile
Blue Collar Recruiter seeks franchisees who possess strong management skills, business acumen, and a willingness to diligently follow the franchisor's methods and procedures. Ideal candidates should be prepared to be actively involved in the day-to-day operation and supervision of their business.
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
Exclusive
Territory Size Requirements
Blue Collar Recruiter grants franchisees a designated territory with an approximate population of 200,000 to 250,000 individuals. The size may vary based on factors determined by the franchisor, including geographic size and population density, and will be defined using county boundaries. Franchisees must operate their business within this designated territory.
Staffing Notes
Blue Collar Recruiter franchisees are solely responsible for all labor and employment-related decisions for their business, including hiring, firing, promotion, compensation, and ensuring employees are qualified and pass background checks. At all times the business is open, it must be under the personal, on-premises supervision of either the franchisee, their Principal Executive, or a trained manager. At least one management employee must successfully complete the franchisor's week-long full-time Initial Training course.