Labor Finders Franchise
Cost, fees, owner earnings, closure rate and litigation for a Labor Finders franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Labor Finders discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations made. Franchisor explicitly disclaims any representations about franchisee financial performance or outlet earnings.
What a Labor Finders franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $20,000 | Item 5 — paid up front, before you open |
| Royalty | 3.5% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 3.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $159,535 – $363,200 | Item 7 — franchisor's own low/high estimate |
Software/mobile app $365/month. Training free for two; $0-$2,500 additional. Social media $0-$100/month estimated.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Labor Finders system size and owner turnover
| Total outlets | 166 |
| Ceased operations | 4 |
| Terminated by franchisor | 4 |
| Transferred to new owners | 5 |
| Closure rate | 2.4% of outlets |
System declined 56% franchised outlets 2023-2025. 104 franchisee exits via reacquisition.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Labor Finders worth it? — how it compares to 436 similar franchises
| Ongoing fees | 3.5% of sales | lower than most (median 8%) |
| Startup cost | from $159,535 | about average (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 2.4% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Labor Finders
The franchisor's framing: No financial performance representations made. Franchisor explicitly disclaims any represe… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Labor Finders franchise — frequently asked
- How much does a Labor Finders franchise cost?
- The FDD lists a total initial investment of about $159,535–$363,200, including a $20,000 initial franchise fee.
- How much do Labor Finders franchise owners make?
- Labor Finders discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Labor Finders franchise fees?
- Labor Finders' FDD discloses a $20,000 initial franchise fee, a 3.5% royalty on gross sales, for roughly 3.5% of gross sales in recurring fees before rent, labor, or debt service. Software/mobile app $365/month. Training free for two; $0-$2,500 additional. Social media $0-$100/month estimated.
- What is the Labor Finders franchise profit margin?
- Labor Finders discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Labor Finders franchise failure rate?
- System declined 56% franchised outlets 2023-2025. 104 franchisee exits via reacquisition.
- How many Labor Finders locations are there?
- Labor Finders' FDD reports 166 total outlets, with 4 that ceased operations in the most recent reporting year and 5 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Labor Finders have complaints or lawsuits?
- Labor Finders discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Labor Finders franchise worth it?
- It depends on the numbers, not the pitch. Labor Finders scores F on disclosure honesty, carries about 3.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: MN CARDS 36005-202604-07 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Labor Finders or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.