FRANCHISE·WATCH·DESK

Verified — real FDD extraction

Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender

Management Recruiters, Sales Consultants

Other · independent · est. —

Management Recruiters and Sales Consultants are executive-search and recruiting brands that place professional, managerial, and sales talent with employer clients. A franchisee runs an office-based recruiting practice, employing search consultants who earn placement fees from companies hiring through the firm.

Management Recruiters, Sales Consultants net unit count declined -1.4% from 20132015 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Showing strain

Distress

0
STABLE

The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.

Exit rate · latest year

4.4%

fiscal 2015, per Item 20

Cost to open

$67K–$106K

Item 7 total investment range

SBA loan defaults

15.2%

vs 14.8% avg across rated brands

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Weak
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Weak
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2013–2015

-1.4%
623201361520146142015

Survival record

FDD Item 20 · outlet status by year

In fiscal 2015, 27 of 615 franchised outlets left the system — a 4.4% annualized exit rate. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)201320142015
Outlets at start680623615
Opened81716
Transfers742
Terminations496226
Non-renewals1040
Reacquired by franchisor002
Ceased — other reasons011
Outlets at end623615614
Net change-57-8-1

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 91 SBA-backed loans to Management Recruiters, Sales Consultants franchisees since 1991. Of the 79 that have resolved, 15.2% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.

Charge-off rate

15.2%

12 of 79 resolved defaulted

Loss given default

84.4%

avg. charged-off $ ÷ approved $

Expected loss

12.8%

default rate × loss severity

Avg. loan · FY2020+

$182,699

what recent franchisees borrowed

Median time to default

63 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

distinct banks lending

Charge-off rate by loan approval year (%)

40'9103814'022250'07

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO MANAGEMENT RECRUITERS, SALES CONSULTANTS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Who finances it

Bank of America, National Association

16.5% of this brand's loans

That lender charges off 13.1% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

76.6%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

Not enough resolved loans to split

Computed from 91 SBA 7(a)/504 loans to Management Recruiters, Sales Consultants franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $40K franchise fee (Item 5) and a total investment of $67K–$106K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$67K–$106K

all-in investment range

Franchise fee (Item 5)

$40K

upfront, one-time

Royalty (Item 6)

9%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$90K

9% of sales, before profit

Over a 10-yr term

$900K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for Management Recruiters, Sales Consultants with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Moderate

Modeled from the public record, this brand sits mid-pack: riskier than 46% of systems we score.

Risk percentile

46 / 100

Measured

Modeled SBA charge-off

12.0%

Observed SBA charge-off

15.2%

Top drivers: System size (log units) (lowers) · Investment ceiling (log) (raises) · Single-lender dependence (raises) · Item 3 litigation (log) (lowers). 50+ resolved loans and complete disclosure data — the score is checkable against the brand's observed rate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for Management Recruiters, Sales Consultants. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Management Recruiters, Sales Consultants's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

Management Recruiters, Sales Consultants franchise questions, answered from the filings

What percentage of Management Recruiters, Sales Consultants franchises closed last year?

In Management Recruiters, Sales Consultants's latest FDD Item 20 (fiscal 2015), 27 of 615 franchised outlets left the system — an annualized exit rate of 4.4%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a Management Recruiters, Sales Consultants franchise cost?

Per Management Recruiters, Sales Consultants's 2016 FDD, buying in requires an initial franchise fee of $40K (Item 5) and a total initial investment of $67K–$106K (Item 7).

What royalty does Management Recruiters, Sales Consultants charge?

Management Recruiters, Sales Consultants charges an ongoing royalty of 9.0% of gross sales, per Item 6 of its 2016 FDD.

Does Management Recruiters, Sales Consultants disclose earnings (Item 19)?

Yes — Management Recruiters, Sales Consultants makes a financial performance representation in Item 19 of its 2016 FDD. Read it closely: franchisors choose which units and which metrics to include.

How often do SBA loans for Management Recruiters, Sales Consultants franchises default?

Across 91 SBA-backed loans to Management Recruiters, Sales Consultants franchisees since 1991, 12 of the 79 that have resolved were charged off — a 15.2% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.

Is Management Recruiters, Sales Consultants a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk