November 12, 2019

HireQuest Announces Rapid Progress on Strategic Initiatives

HireQuest Announces Rapid Progress on Strategic Initiatives

 Closes Sale of Four California Locations; Completes Conversion of All Remaining Branches to Franchise Model

HireQuest, Inc. , a national provider of back-office and operational support for franchised operators of on-demand and temporary staffing service providers across the United States, reported that it has completed the sale of its four locations in California and the conversion of its remaining branches to its franchise business model.

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“Our team worked expeditiously to gain state regulatory approvals and convert the acquired Command Center branches to our franchise business model within 10 weeks following our merger,” commented Rick Hermanns, HireQuest’s President and Chief Executive Officer. “We believe that this move lowers operational risk. We expect our franchise owners and operators will also benefit from the unique financing and risk management structures we provide. We also believe that both HireQuest and its franchisees will see enhanced growth rates at our newly franchised locations due to the financial incentives inherent in our model. Integration and rationalization of expenses is on-going as we continue to identify opportunities for long-term growth and increased profitability across our platform. Integration expenses and non-recurring charges related to these activities are expected in the coming periods.”

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In addition, the Company announced that it has completed the sale of its four locations in California to Resolute Enterprises, LLC for $1.8 million. Under the terms of the sale agreement, HireQuest is providing seller financing and has received a four-year promissory note with a face value of $1.8 million at 10% interest per annum.

“We believe that we are now positioned to grow, by expanding our national footprint, through select, accretive acquisitions and by broadening our participation with national accounts,” added Mr. Hermanns.

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