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What is The Cost of a Patrice & Associates Franchise
For more than three decades, Patrice & Associates have been connecting excellent management candidates to companies in the United States and Canada. With such a reputable service and experience in the recruitment industry, Patrice & Associates is undeniably the go-to recruiting firm. If you’re interested in a franchise, the company has been offering business opportunities since 2010. Here’s everything you need to know about the Patrice & Associates franchise cost and terms.
Company Overview
Patrice & Associates started as a management recruitment business way back in 1989. The company specialized in the Hospitality niche and progressed to a full-fledged recruitment firm. Patrice & Associates then offered franchising opportunities in 2010 under the franchisor Patrice & Associates Franchising, Inc.
More than 150 Patrice & Associates franchise business owners are now happily running their stores. Also, the company boasts 275 highly trained and experienced recruiters. This ensures that Patrice & Associates connects companies in the United States and Canada with suitable management candidates.
The company also represents specialty and hospitality businesses such as restaurants, retail, and more. According to the founder Patrice Rice, her aim is not about revenue but also about helping people.
Franchise Training Details
Here are the training details you need to know:
- The franchisor requires franchisees to attend both initial and advanced training programs, covering the details of the business operations.
- These training programs come on an ad hoc basis and are held at Patrice & Associates’ headquarters in Dunkirk, Maryland. However, the franchisor may assign another location if necessary.
- Franchisees must attend a week-long virtual training and the initial training program for two weeks at the franchisor’s office.
- Franchisees may opt to attend an advanced training program for a week 90 to 120 days after opening their agency.
- A representative will receive support via one-on-one phone sessions daily for the first 90 days. Additionally, the franchisor will provide support for the first six months through telephone conferences twice a week.
- The franchisor also requires franchisees to attend refresher training programs in Maryland or in another location the franchisor designates.
- Franchisees and their appointed manager must attend annual conferences.
Franchise Territory
Here is the franchise territory overview:
- Franchisees are assigned a specific territory that should follow the Franchise Agreement rules.
- The franchisor should also choose the territory boundaries based on several components. These include population, retail and hospitality infrastructure, competitors, and political, physical, and natural boundaries.
- The population must have at least 250,000 and should be described by zip codes.
- The franchisor will not grant another franchisee within the chosen territory as long as the current franchisee isn’t in default.
Franchise Obligations and Conditions
The franchisee must appoint a designated manager to direct and supervise the agency full-time daily. For individual franchises, the owner may be appointed as the designated manager. If they want to assign another designated manager, the franchisee must ask for consent from the franchisor.
However, if the franchise is under a corporation, they must select a designated manager, who must also be one of the business owners.
The designated manager is required to attend and complete the training program satisfactorily before running the agency. The franchisees must only offer services that the franchisor requires and authorizes.
Franchise Terms and Renewal
The initial franchise term length is five years. However, franchisees may renew another three five-year terms if they are in good standing.
Financial Assistance
The franchisor doesn’t offer indirect or direct financing. Also, the franchisor doesn’t promise franchisees a lease or other obligations.
Did You Know?
Here are some fun facts about Patrice & Associates you probably didn’t know:
- Patrice Rice once opened a cruising business called Chesapeake Cruising on the Chesapeake Bay.
- She became the first woman Captain in Chesapeake.
- Patrice has been recognized by known digital magazines such as The Washington Post, Wall Street Journal, CNN, Forbes, Entrepreneur, and more.
- Patrice also made a debut on Fox & Friends television as well as radio news broadcasts.
Your Investment:
Here’s the Patrice & Associates franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $58,000 | $58,000 |
| Training Fee | $7,000 | $7,000 |
| Starter Kit | $3,000 | $3,000 |
| Office Equipment & Supplies | $300 | $500 |
| Rent and Security Deposit | $0 | $1,000 |
| Expenses During Training | $2,500 | $5,000 |
| Initial Inventory | $3,000 | $5,000 |
| Computer(s) | $500 | $1,000 |
| Development of Microsite and Maintenance | $7,000 | $7,000 |
| Legal & Accounting | $1,000 | $1,500 |
| Annual Contracts with 1 of the Approved Suppliers for Job Boards | $275 | $1,000 |
| Dues, Subscriptions & Business License or Permit | $1,000 | $2,000 |
| Insurance | $250 | $500 |
| Recruiter | $4,800 | $10,000 |
| Additional Funds (3 months) | $5,000 | $10,000 |
| ESTIMATED TOTAL | $93,625 | $111,000 |
Other Fees:
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 10% of gross sales. |
| Marketing Fund Contribution | 2% of gross sales. |
| Proprietary Database Fee | 7% of gross sales. |
| Billing Services Fee | 5% of gross sales. |
| Annual Convention Fee | Reasonable fee and all expenses. Currently the fee is $495 per person. |
| Additional Training and Assistance | Fee and expenses (only if the franchisor visits the franchisor’s agency). The current fee is $600 per day and the expenses would include the franchisor’s travel and living costs. |
| Interest on Late Payments | Lesser of 1.5% per month or maximum legal rate. |
| Transfer Fee – Franchise Agreement | $10,000 |
| Taxes | Actual cost |
| Recruiter Training | Reasonable fees. Currently $2,000. |
| New Recruiter Fee | $125 set up charge and $60 per month and $85 to train recruiters using the Proctor Program. |
| Training of Designated Manager | Reasonable fees. Currently $3,500. |
| Non-Compliance Fee | $100 per incident. |
| Technology Fee | The then-current fee, currently $150 per month. |
| Temporary Management Assistance | Currently, $600 per day plus the franchisor’s expenses. |
| Indemnification | Will vary under circumstances. |
| Approval of Suppliers | Reasonable fee based on the costs of the test. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Failure to Comply with the Dispute Resolution Provisions | Damages in the amount of the initial franchise fee plus costs and expenses. |
If you’re ready to start your Patrice & Associates franchise, visit their website for more details.
And if you want to check out other franchises, read more here at Franchise How!