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A recruitment franchise lets you operate under a larger brand that supplies you with systems, branding, leads, training, tech, etc., while you focus on generating placements (matching candidates with employers). You’re buying into their business model rather than starting from scratch.
Recruitment is generally a scalable business: if you build up your client side & candidate side, placements can generate high commissions.
Lower overheads compared to many brick‑and‑mortar businesses: much can be run remotely; people are the product/service.
Many franchisors let you start small (even from home or with one “desk”) and scale over time.
There's a low barrier to entry in terms of skills required (sales/negotiation, managing relationships, understanding industries) even if you don’t have decades in recruitment already.
If you’re considering investing in a recruitment franchise, you should:
Talk to existing franchisees (in different geographies if possible) about lead‑quality, support, real revenues vs promises.
Examine historical financials if possible: how many placements, average fee, client retention, candidate satisfaction.
Country / territory exclusivity.
Franchise length, renewal terms, what happens after end of term.
What fees you pay (franchise fee, ongoing/licensing/royalties, marketing levies etc.).
What the franchisor supplies (tech, marketing, leads).
How long to get first placements, when money from placements comes in vs your overheads.
Staff costs, marketing, software, compliance, maybe premises.
Are you doing generalist recruitment or specialising in a sector where you understand the clients well? Specialists often get better margins.
How you will differentiate from other agencies/franchises in your area.
Data protection (GDPR).
Right to work checks.
Contracts with clients and candidates.
Insurance, regulatory compliance if relevant.
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