$45

Business Description

To simplify the language in this disclosure document, "MRI" and "we" means Management Recruiters International, Inc., the “Franchisor.” "You" or “Franchisee” means the person who buys an MRINetwork franchise whether an individual, corporation, partnership, or limited liability company. The Franchisor, MRI, was formed as a corporation in the State of Delaware on January 5, 1972. Franchisor’s principal business address is 1735 Market Street, Suite 200, Philadelphia, Pennsylvania 19103 and our telephone number is (800) 875-4000. We do business under our corporate name, “MRINetwork,” “Management Recruiters,” “Sales Consultants,” and “OfficeMates 5,” and the associated logos and designs which have been registered on the Principal Register of the United States Patent and Trademark Office and any other service marks, trademarks and/or logos we designate (the names and logos will be referred to as the “Marks”). We do not own or operate any business of the type you will be operating. We have offered franchises in the line of business disclosed in this disclosure document since 1993 and have not offered franchises in any other line of business. We only offer franchises which operate under the marks listed above.

Prior Experience

We do not own or operate any business of the type you will be operating. We have offered franchises in the line of business disclosed in this disclosure document since 1993 and have not offered franchises in any other line of business. We only offer franchises which operate under the marks listed above. MRI was purchased from our Predecessor CDI Holding Company, LLC on May 28, 2019 by MRI Network Holdings, LLC, a Delaware limited liability company formed on May 16, 2019. MRI Network Holdings, LLC maintains its principal place of business at 1735 Market Street, Suite 200, Philadelphia, Pennsylvania 19103. MRI Network Holdings, LLC offers direct hire placement service franchises through its subsidiary MRI.

Business Offered

MRI offers franchises for the right to operate a MRINetwork recruitment and placement business for direct hire and licenses for contract staffing placement services (the “Franchised Business”) as a traditional franchise or an established firm franchise. If you qualify as an established firm, you will enter into an Established Firm Addendum which will amend certain terms of the Franchise Agreement. The Franchised Business is operated under the marks and uses our distinctive operating procedures, standards, and know-how (the “System”). The distinguishing characteristics of the System include, but are not limited to, our distinctive design, training methods, trade dress, sales techniques and materials, control systems, bookkeeping and accounting methods, uniform standards, specifications and procedures for operations, quality control, training and ongoing operational assistance, advertising, and promotional programs, marketing systems, and related benefits for use by all franchisees, all of which may be changed, improved, or further developed by us at any time.

Initial Fees

You must pay to us an initial franchise fee (the “Initial Franchise Fee”) when you sign a Traditional Franchise Agreement. The Initial Franchise Fee is $40,000. You must also pay a Start-up Package Fee in the amount of $18,000. If you qualify as an Established Firm, defined as a staffing and recruiting business having been in operation for no less than two years and having annual placement revenue of no less than $250,000 per year, the initial franchise fee is waived. You will pay the first installment of the annual fee upon signing the franchise agreement. If the purchase is as a result of a Transfer, you must pay a Jump Start Fee of $5,000 to cover the costs of training and other administrative functions. We offer a discount to honorably discharged veterans of the United States armed forces. The Initial Franchise Fee is discounted for honorably discharged veterans to $32,000. A copy of your DD214 will be required to receive this discount. In addition, the veteran must own at least 51% interest in the franchised business, attend Phase I and II New Office Development Training, and activity participate in the day-to-day operations of the business at least thirty hours per week for five years. Payment is fully earned by us and is due and payable when you sign the Franchise Agreement. The Initial Franchise Fee is not refundable under any circumstances.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations.

Franchisee Revenue and Profit

BACKGROUND The tables below show the revenue of 223 offices who reported revenue from placements and contract staffing through our Point-of-Sale software. Some franchisees have agreements that do not require reporting in this manner. Each office in these tables was in operation for the full year 2018. The tables also include those offices that reported all twelve months in 2018 with at least one direct hire placement during the period of at least $12,000. A direct hire placement means that a candidate was hired by a client to work on a full-time basis. Twelve offices report all revenue for more than one franchise agreement on a combined report. These tables do not include thirty-five franchisees who reported in our Point-of-Sale system during 2018 and reported less than $12,000 in revenue. Of these thirty-five, four were new owners, two were three to five years in tenure, four were six to nine years, twenty-five had a tenure of more than ten years. Some older agreements have provisions that do not require full-time operations of the franchised business and these legacy owners may not operate their businesses full-time. We have used the "Quartile Analysis" in the presentations of the results. The minimum cash column represents the lowest reported earnings within the category, the maximum cash column represents the highest reported earning within the category. The quartile columns reflect the average operating results of offices whose net profit ranks in the mid and upper 25% of offices in their size category. The average placement fee for all US MRINetwork offices is $24,523 calculated from results reported to us by all MRI franchisees. The offices are located in 41 states. We attach no relevance to the geographical locations of the offices, since each office may do business anywhere in the country. All information is based on data reported to us by the offices and has not been audited by us. Your individual results may differ. There is no assurance that you’ll earn as much. Net income will vary from business to business depending upon factors such as rental or real estate costs, costs of goods sold, labor costs and other costs relating to the operation of the business. We strongly urge you to consult with your financial advisor or personal accountant concerning the financial analysis that you should make in determining whether or not to purchase a Management Recruiters International, Inc. franchise. Written substantiation of the data used in preparing these figures will be made available to you upon reasonable request. The information presented above has not been audited. Other than the preceding financial performance representation, Management Recruiters International, Inc. does not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting Nancy Halverson at 1735 Market Street, Suite 200, Philadelphia, PA 19103 and 770- 325-3368, the Federal Trade Commission, and the appropriate state regulatory agencies.