Labor Finders

## Executive Summary

Labor Finders International is the oldest and largest privately held industrial labor staffing franchisor in the United States founded in 1975. With over $380 million in sales nearly 200 branch locations and 48 years of proven operations the company has demonstrated resilience through multiple economic cycles. Named to Entrepreneur Franchise 500 since 2008 and ranked 11 on Forbes Best Temporary Staffing Firms 2025 Labor Finders offers a lower-cost entry into the staffing industry with strong franchisor financial health.

## The Business

Labor Finders specializes in blue-collar industrial temporary staffing across positions including electrical construction carpentry production assembly and maintenance. The company employs more than 20000 people daily through its network of locally owned and operated offices. Core values emphasize Respect Appreciation and Safety with focus on treating temporary employees and customers fairly. Unlike some staffing companies each Labor Finders office operates with local ownership providing community connection.

## The Numbers

**Initial Investment:** $153635 - $354200

**Franchise Fee:** $20000

**Royalty:** 3.5% of gross revenue

**Net Worth Required:** $150000

**Liquid Capital Required:** $35000

**Franchise Term:** 10 years with 10-year renewal

**Unit Count:** 183 units currently operating

**Systemwide Sales:** Over $380 million

**Franchisor Net Worth:** $38.4 million (2024)

**Franchisor Net Income:** $3.8 million (2024)

## System Health

**Awards and Recognition:** - Best of Staffing Client award every year since 2010 - Entrepreneur Franchise 500 listing since 2008 - Forbes Best Temporary Staffing Firms 2025 ranked 11 - Top Franchises for Less Than $100K (Entrepreneur 2024) - Top Franchise for Veterans (Entrepreneur) - Diamond Award for nine consecutive years of Best of Staffing

**Critical System Change:** In 2023 the franchised system experienced significant restructuring with unit count dropping from 184 to 84 primarily due to franchisor affiliate reacquiring 99 locations. This 50%+ reduction represents a massive change that prospective franchisees should investigate thoroughly.

## Franchisee Experience

**Training:** 80 hours total including 44 hours classroom and 36 hours on-the-job training.

**Client Reviews:** Labor Finders offices consistently earn 5 out of 5 stars from clients with 2025 Best of Staffing awards across multiple locations.

**Employee Reviews (Mixed):** Some workers praise flexibility and helpful staff while others cite limited growth opportunities. Management quality varies by location.

**Core Differentiators:** Local ownership model provides community connection and personalized service compared to corporate-owned staffing agencies.

## Risk Assessment

**Key Concerns:** - 2023 system contraction of 50%+ units requires investigation - Industrial staffing vulnerable to economic downturns and automation - Worker reviews show inconsistent experience across locations - Lower royalty rate may indicate different support model

**Mitigating Factors:** - Strong franchisor financial health $38.4M net worth - 48-year operational track record through multiple recessions - Consistent industry recognition and awards - Low initial investment reduces financial risk - Blue-collar labor demand remains strong

## Competitive Position

Direct competitors include Express Employment Professionals Spherion PrideStaff and Staffing Inc. Competitive advantages include 48-year brand heritage industry-leading awards low investment requirements locally owned model and industrial specialization. Competitive disadvantages include 2023 system contraction mixed worker reviews and limited white-collar services.

## Validation Questions

1. What drove the 2023 reacquisition of 99 franchised locations by the franchisor affiliate? 2. What is the current franchisee satisfaction level after the system restructuring? 3. How do unit-level economics compare before and after the 2023 changes? 4. What support changes have been implemented following the restructuring? 5. What territories are currently available and what is the development strategy? 6. How do labor market conditions in specific territories affect performance? 7. What technology platforms are provided for recruiting and placement?

## Data Gaps

- Specific Item 19 financial performance data - Franchisee satisfaction survey results - Detailed explanation of 2023 system restructuring - Territory-specific performance benchmarks - Customer acquisition and retention metrics - Worker placement rates and repeat business data