ApTask Franchise FAQ’s


1

Why the Staffing Business?

Staffing is an industry that generates more than 125B a year in revenue. There are very few companies doing more than 100M in revenue. The rest is done by small and medium-sized staffing companies. There is a HUGE opportunity to get involved in the Staffing Business.

2

Why an ApTask Franchise?

  • ApTask is an established brand with Blue Chip clients.
  • ApTask provides the required infrastructure to you to get started in the Staffing Business.
3

Other Franchised Staffing Companies

  • PrideStaff, Remedy Staffing, Express Staffing
  • JomSom, SearchPath, AllAboutPeople
  • Once you compare us to our competitors, we are sure that you will like and appreciate our offering.
4

What does it take to become an ApTask Franchisee?

  • 5+ years of staffing sales/business development experience;
  • Desire to be independent and provide world-class customer service to your clients;
  • Dream of setting up your own business;
  • The inclination to earn more than your current salary/commissions;
  • Willing to take initial risks; and
  • Create EQUITY VALUE in your company with an option to sell the business.
5

What are the Benefits of Becoming an ApTask Franchisee?

  • ApTask provides Franchising opportunity in the form of “Staffing Business As A Service” (SBAAS);
  • We provide back office, payroll, benefits, invoicing, onboarding, and collection services;
  • We provide world-class recruitment support; and
  • We provide all tools and insurance needed by your client to do business with you.
6

What is the Selection and Application Process?

  • Proven track record of sales and business development experience in staffing industry;
  • Currently making more than $150K/year;
  • Having rich C-Level rolodex and relationships;
  • Good understanding of VMS/MSP model of staffing; and
  • Good knowledge of staffing with SOW pricing model.
7

How Long is the Process to Finalize the Franchise Agreement and Start the Business?

  • It varies from state-to-state;
  • Usually takes between 20 and 40 business days from start to finish;
  • You will contact us to learn about our offering;
  • You will submit a franchise application with your company name;
  • Our legal team will provide you with a Franchise Disclosure Document, which needs to be reviewed by you and/or your attorneys;
  • Signing of all agreements; and
  • Writing a check for $1,001 (or the amount specified in your FDD) for your first year franchise fee and first year software fee (email, phone, business card, CRM access).
8

What is my Territory?

  • We have an innovative method where our franchise territory is not based on any geographic location or industry;
  • ApTask Franchise offers the option to select FIVE Fortune 2000 companies anywhere in the country to select as your DEDICATED client list, which is equivalent of your territory;
  • Small/Mid-size clients in your area are open for grabs and not part of your dedicated list;
  • Once you have received an Master Service Agreements (“MSA”) from three of the five dedicated clients, five MORE exclusive clients may be awarded to you.
9

What Happens if there is Conflict in Clients that I Would Like to Pursue?

  • There is a possibility that your desired exclusive client is already assigned to another franchisee. In that case, the client cannot be assigned to you, until either existing franchisee acquires the MSA from that client or they finished their ONE year of exclusivity with this client and still didn’t get the MSA from that client. In such a scenario, you may get that client assigned to you; or
  • You can partner with the alternate franchisee who this client is assigned to and try to procure the MSA together and share the profits with them. This will be completely at the discretion of the franchisee who has been assigned that client to accept or reject the relationship with you.
10

How and When do I get Paid?

  • Your share of profits will be paid once the client pays our invoices.
  • For monies received in a given month from the client, your share of profits will be paid on or around the 25th of the following month.
11

Do I Need to Set Up a Legal Entity?

  • Yes; we prefer that you form a separate legal entity.
  • For which type of company you should form, you should consult your attorney or accountant. We do not have any requirement for any particular type of legal entity. We need an EIN number and business bank account number to pay you your share of profits.
12

Do I Get Paid any Salary or Draw?

  • No, You are the OWNER of your own company and will do business as an independently-owned ApTask franchise.
  • In special cases, we may offer a draw against future share of profits based on the franchisee’s background and experience.
13

Who Pays for Business Expenses?

You pay for all your business expense from your own business entity. Consult your accountant for more information, including whether you can deduct certain expenses.

14

Can I Bring International Clients and Job Requirements?

Yes, ApTask can run payroll and provide recruitment support in more than 125 countries.

15

What Kind of Positions ApTask Can Work On?

  • Information Technology;
  • Account, Finance, BookKeeping, Admin;
  • Engineering, Clinical;
  • Healthcare; and
  • Any other WHITE COLLAR jobs.
  • We do not currently provide recruitment support for blue collar/light industrial jobs.
16

Is there a Gross Margin % or $ Required?

Yes, please review the Franchise Disclosure Document for the details. Currently for C2C/IC, the minimum gross margin needed is 18% and for W2 it is 32%; however, this is subject to change.

17

Can I Work from Home?

  • Absolutely YES.
  • You can work from home, vacation home and in the future from Mars J
18

Can ApTask do Payroll/Pass-Through Deals?

Yes. In case of Payroll/Pass-Through business, we will waive the recruitment fee and only charge 10% for C2C/IC and 20% for W2 placements. Anything over 10% and 20% will be split 50/50 between franchisee and ApTask.

19

Can ApTask Provide VMS Tool if I have a Client for it?

Yes. Any applicable cost for using VMS tools, such as Fieldglass, will be applied and reduce the profitability of the transaction for calculating the franchisee’s share of the profits.

20

Can ApTask become MSP for Client Onsite?

Yes. Terms for profit-sharing in this scenario will be discussed and mutually agreed before committing to any such project by franchisee and ApTask.

21

What if I Want to Hire Additional Sales People on my Team?

  • You can hire additional sales people, and will be responsible to pay for your team. You can either run the payroll, directly, or ApTask will run payroll for you provided you fund the payroll and all payroll-related costs before the due date of the payroll.
  • For every additional sales person you hire in your company, you will be awarded FIVE additional exclusive clients. Those FIVE clients will be suspended if a sales person leaves the company without procuring a MSA from those clients. If a MSA was procured and active business is being done with any of these clients, and sales person leaves, the franchisee can keep that client.
22

Can I Hire my Own Recruiters?

No; providing recruitment services is ApTask’s responsibility.

23

How Do I Calculate my Share of Profits?

Please review the Franchise Calculator, or watch a video demonstration, on our website at www.aptask.com/francalc.

24

How Can I Estimate my Share of Profits for Future Months?

We may provide you access to a portal which will try to predict your future months share of profits based on number of active contractors and your client’s payment pattern. This portal is expected to be available in 2018-Q2, however, this is subject to change.

25

Can I Sell my Business?

  • Yes, subject to applicable laws and the conditions in your Franchise Agreement, you may sell your franchise after the first yearof operation.
  • There is 5% transaction fee (with a minimum of $5,000) to transfer your franchise agreement to a new franchisee. You can decide if you will be paying or if the buyer will pay the fee. The new franchisee will continue to get your share of profits once the transfer is completed and transfer fee is paid in full.
26

Who Owns the Client?

ApTask has the MSA of the clients but, if the MSA was acquired by you, you are the actual owner of the client and, if any other ApTask franchisee wants to do business with your client, they will need your permission (which you cannot unreasonably withhold) and you will be paid 2.5% of the revenues generated by that client for all business over 18% for C2C and 32% for W2 sales/revenues.

27

Can I Recruit for Another Franchisee’s Open Positions?

Generally no but, in certain cases, permission might be granted and ApTask will share the recruitment fee with the franchisee 50/50. ApTask has sole discretion as to whether permission may be granted.

28

Can You Explain the Profit/Spread Breakup of My Share for Corp-to-Corp Placements?

Please review the Franchise Calculator, or watch a video demonstration, on our website at www.aptask.com/francalc.

29

Can You Explain the Profit/Spread Breakup of My Share for W2 Hourly Placements?

Please review the Franchise Calculator, or watch a video demonstration, on our website at www.aptask.com/francalc.

30

Can You Explain the Profit/Spread Breakup of My Share for W2 Salaried Placements?

Please review the Franchise Calculator, or watch a video demonstration, on our website at www.aptask.com/francalc.

31

How Much I Will be Charged to do Business with ApTask Existing National Accounts?

5% of the Bill Rate will be deducted for profit calculations.

32

Who Pays for Business Travel and Entertainment Expenses?

You do. You should consult your accountant for how to record these expenses on your books and to determine whether it qualifies as a business expense and whether same is tax deductible.

33

What Will be My Work Hours and Vacations?

While you decide your work hours and how many vacations you want to take, please review the Franchise Disclosure Document for the minimum days of operation required and related obligations for the franchisee to be involved in the operation of the franchised business.

34

Can I be Terminated as ApTask Franchisee?

Yes, it is possible, subject to applicable law; please read the Franchise Disclosure Document for causes and reasons you may be terminated as an ApTask Franchisee.

35

What Kind of Background Checks does ApTask Perform before Approving Franchisees?

Standard background check and drug test.

36

If I have Bad Credit, will it Affect ApTask’s Decision to Award me a franchise opportunity?

No.

37

What if I have a Non-Compete with my Current or Past employers?

Please consult your attorney to review your contract before deciding whether you can/should purchase a franchise opportunity from ApTask.

38

Is There a Referral Program if I Introduce ApTask to New Franchisees?

  • Yes; 2% of revenues in Year 1 and 1% of revenues in Year 2.
  • For example, if a franchisee you referred gets approved and he/she generates $2M in revenues in Year 1 and $3M in Year 2, you will get $40K for Year 1 and $30K for Year 2, as a referral fee.
  • You will be paid your referral fee within 30 days from the completion of the new franchisee’s first year.
39

How Can I Get Medical/Dental/Vision Insurance for Me and My Family and How Much Does it Cost?

  • ApTask’s insurance broker can help guide you; or
  • You may be able to go to the open market to get insurance.
40

Can I Setup a Physical Office or Shared Office like WeWork?

Of course, but you will pay for it from your business entity

41

Do I Need to Procure my Own Insurance Policies?

Yes, there are insurance requirements in the Franchise Agreement. Please review the Franchise Disclosure Document for additional information. However, you do not have to purchase insurance for contractors we place at your clients.

42

Can I Lease a Car under My Business Name?

Consult your accountant.

43

Can I Deduct Travel Expenses and/or Mileage Expenses?

Consult your accountant.

44

Can I Deduct Required Computers and Equipment Purchases as a Business Expense?

Consult your accountant.

45

Will ApTask Provide Me with a Desk Phone or Mobile Phone?

ApTask may provide a desk phone, but a mobile phone will be your responsibility. Please review the Franchise Disclosure Document for additional details.

46

Will ApTask Provide Me a Corporate @aptask.com Email Account?

Yes, each franchisee and sales person will receive an @aptask.com email account.

47

What ATS Will I Have Access to for Tracking My Client Jobs and Submittals?

JobDiva.

48

Will I Have a Dedicated Recruitment Team to Work On?

This will depend on the workload and number of positions you have active.

49

Are There Any Reporting Systems I Have to Comply With?

Yes, beyond filing state and federal taxes, for which you should consultant an accountant, there are additional reporting requirements. Please see the Franchise Disclosure Document for more information.

50

Will I Have my Name/Contact Information Listed on the Aptask.com Website?

Yes; ApTask, at its sole discretion, may also issue press releases using your name. If you buy this franchise, your contact information may be disclosed to other buyers while acting as a franchisee and after you leave the franchise system.

51

Are There Any Minimum Hours I Have to Work?

No, but you cannot have an alternate job while serving as an ApTask franchisee. Please review the Franchise Disclosure Document for additional information regarding your obligation to participate in the actual operation of the franchised business.

52

Can I Use ApTask’s Corporate Office?

Yes, as needed and subject to space availability.

53

Can I Use ApTask's Diversity Status?

Yes, we are currently certified as a Minority Business with NY/NJ-MSDC and NMDC.

54

What Happens to my Share of Profits if ApTask has to Pay Volume Discounts or Any Other Discounts/Rebates/Penalties to the Client?

All client discounts will reduce the profits before calculating your share of profits.

55

Who is Responsible for Collecting Unpaid Receivables from Clients?

  • Collection efforts are within the sole discretion of ApTask. If ApTask engages in collection efforts, you will be required to assist as needed and as determined by ApTask in its sole discretion.
  • Cost of collections will reduce the profits for distributing your share of the profits.
56

How Will I Report my Earning to the IRS?

Consult your accountant.

57

What if My Client/Contact wants ApTask to do Business with Them Through an Existing Approved Vendor?

This will be determined on a case-by-case at ApTask’s sole discretion.

58

Can I Send Corporate Holiday Gifts to My Clients, and Do I Get Reimbursed?

  • You can send gifts which are legal and permitted under the client’s MSA and rules of engagement, and as permitted by applicable law.
  • You will not be reimbursed by ApTask for these gifts.
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