For existing search firms who waive the normal franchise start-up and induction training, we waive the franchise fee. However, there is an initial start-up package of $7,500 which will in part offset SRAI’s incurred costs providing for initial onboarding work and services. Royalties are paid on the cash-in of your office. Existing search firms are on a tiered schedule of 5.5% of revenue up to $2mil, 3% on $2-3mil, and 1% on $3mil+.
Initial on boarding work and services in the Start-Up Package include but are not limited to minor website alterations and integration, website alterations for co-branding, initial public relations and market promotion, marketing material design/facilitation of co-branded materials, filing fees, applicable state license support, SRAI orientation calls, initial operations and training onboarding, process and systems integration, business audit and review, technology audit and review, HR documents audit and review, and any new office start up projects.
The term of our initial agreement is five years. If you desired to leave after the first two years, the agreement provides for a buy-out option of a payment of one year of your royalties. At the end of the fifth year, you could choose to exit without any payment or the agreement would continue and simply require a six month notice to exit without any fee. While a new non-existing search firm franchisee has restrictions, non-competes, and the like the only requirement of an existing firm would be to return all SRA material, cease to use any SRA material and property, and remove any branding or co-branding association from your organization.
No, you do not have to change anything; if you choose the co-branding option, you will retain all of your current email addresses, website, phone number, etc. You will be provided with a separate SRA email (email@example.com as an example) for your internal and/or external use. You will also be listed on the main www.sanfordrose.com website and for an internal-only purpose within the network you will be listed as SRA-NAME OF YOUR FIRM. We will work with you to determine how to best add the co-branding additions to your website, collateral material and the like. As a reminder there are a variety of options for this with the minimum requirement being that you integrate the SRA tagline that states “a member of the Sanford Rose Associates Network of offices” near your logo, website header and footer copyright notices, and the integration of the “About SRA” content in your website and marketing content.
You still wholly own and operate your firm. What specifically would you be concerned that you would lose control over? We have no ability or desire to mandate the way you do business, operate your business, the hours you work, or the amount your office bills. We are here to support you in the implementation and achievement of your vision, but it’s your vision.
No, territories are one mile from office location but in some instances, we have offices located within a mile of each other and nobody cares. What we do care about is making sure niche specializations are complimentary to one another and not over saturating any markets.
It is difficult to quantify without knowing your situation and what part of offerings will be most utilized by you. The following is a hypothetical example:
- Uses hiring services 3 times throughout the year. This has a charge of over $10,000 for NLE clients.
- Puts 3 hires through our Facilitated Foundation Program with advanced individualized coaching. This too is over $10,000 for NLE clients.
- Enjoys over $15,000 a year in marketing communication and public relations benefit
- Used SRA leadership and legal counsel to collect on a $25,000 fee that otherwise may have required litigation
- Saved thousands and avoided a technology nightmare by establishing an effective email archiving and system back up procedure
- Utilizes the accounting and operational team to audit commission records and uncovers thousands in overpaid commissions
- Gets handed a retained search by another owner whose client has a need for hires out of their competency and ends up with 80% of a $50,000+ fee
- Has an associate motivated to achieve a top position in the annual Top 10 rankings and production doubled year over year
- Partakes in regular coaching with a SRA coach as well as two MasterMind groups with other owners. Outside firms charge in excess of $20,000 annually for this.
- Enjoys incredible savings that exceed $25,000 from either free or drastically reduced costs from outside vendors
- Blue sky value of the culture and being part of something bigger than oneself: priceless
The firms generates $1.1 M in revenue and thus paid $55,000 for the above. Can you hire a person that costs $55,000 total including taxes and insurance and overhead that could provide you with all this?
Kaye/Bassman has built its own distinctive brand that is independent and separate from Sanford Rose. To ensure respective brand integrities, they have remained separate. Every year there are many split placements between KBIC and SRA and we periodically hold events that perpetuate the great relationship between the two organizations. NLE is a separate consulting and training organization; however, many of the people who serve on the NLE team also serve the SRA organization. This provides a bench of support unmatched by anyone in the industry. Both Kaye/Bassman and Next Level are instrumental in providing the funding, support and expanded buying power for SRA. Additionally, SRA is able to leverage many KBIC and NLE resources for the betterment of each franchisee.
A franchise provides for far more mutual commitment and has more protections for both parties. For those non-established firms we do allow to join, we provide the initial training, on-boarding, standard branding and the like commensurate with a franchise network. We believe this is a vital element of maintaining the integrity, quality and culture of our network. While some other franchises in our industry may have given you a potentially negative preconceived idea of what a franchise is, we prove that it is not the system that is the issue but rather poor execution and greed. To this end, since we acquired Sanford Rose we have been ranked every year in the Top 200 Franchises nationally and Top 20 in Business Services. We were the ONLY LISTED and thus the #1 search firm who achieved this distinction. The list is compiled based on an independent and anonymous survey of all of our owners by Franchise Business Review.
We control the number of offices allowed in the network and type of niches in which those firms specialize. Although offices have no restrictions in terms of the markets they can ultimately pursue, if for any unfortunate reason an organization operates in a way that constitutes a default, we can also require that firm’s exit from our network. Each member should behave in such a way that only strengthens the reputation and value of the overall brand. Clients and candidates view the SRA office as an independent business who is part of a collective of firms that allow them to be better served.
Our franchise territories are geographically only one mile; thus, multiple firms can be in a proximate area to one another. The geography is not what matters except in local functional businesses. In those cases, we would restrict those that could enter but it would not be because of geography. The reason for one mile is to avoid confusion for those visiting an SRA office and having two offices in the same building or across the street.
Acquiring and growing SRA is a “get to” not a “have to” for the leadership team and owners of SRA. Building something that is a true industry game-changer and that has never been done before is the legacy we strive to create. We are committed to a corporate team that is capable, connected and unified in the pursuit of our own next level. We love helping firms achieve their goals, and being able to do so within the framework of a like-minded group of fun-loving entrepreneurs is what we are all about. Imagine a couple hundred search firms all over the US and another few hundred around the globe all in pursuit of building the search firms of their dreams, guided by common core values, who respect each other’s individuality but know that together they can achieve far more collectively than they would individually. Now think about the benefit of developing so many authentic and meaningful relationships with people who understand the issues you face. Operating from abundance and the concept that a ‘rising tide lifts all boats’ is baked into the cultural DNA of our team. We all have a gap between our achievement and our potential, and the gap between those is the journey to the next level. Of course, as soon as the gap closes, a new potential opens up. Like a journey to the end of a rainbow, the pot of gold is not at a destination as there is no end. The pot of gold is the journey itself!