National Recruitment was established in 1994 and by the end of 2007 there were 7 franchisees. Three have since departed.

We ctitically evaluated our franchise offer and the type of franchisees we were attracting.

The review has resulted in the decision to incorporate the following:

1. The territory will be occupational based, not industry based.

2. Franchisees will be recruited with occupational experience.

3. We have appointed a person who will train and induct new franchisees and make sure they comply completely with National Recruitment's systems.

4. Franchisees will be given the opportunity to pay part of the franchise fee up-front and the balance after 12 months.

5. We will pay a living allowance plus all operating expenses of the franchise until profit is achieved. We expect this will occur within the first 6 months.

These changes are now being implemented with 2 new franchisees presently going through training. One of our former franchisees is going to open a new franchise using this model.