Express Employment Professionals Franchise in 2024: Costs, Fee & FDD

Discover the key insights into Express Employment Professionals, a top staffing franchise. Explore investment costs, revenue potential, and the pros and cons to determine if this established brand is the right business opportunity for you.

Last updated 9 Oct 2024 Time 10 min read
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Express Employment Professionals is a well-established franchise in the staffing and personnel industry, founded in 1983 by Bob Funk and Bill Stoller. Their goal was to create a company that could help businesses connect with top-tier talent while supporting job seekers in finding meaningful work. Over the years, it has become one of the largest staffing agencies in the U.S., and its founders’ vision of making a difference in people’s lives has made Express Employment a significant player in the industry.

At its core, Express Employment provides temporary, contract, and permanent staffing solutions to businesses. Their services cater to various sectors, including light industrial, office services, skilled trades, and professional placements. Ancillary services include HR solutions, workforce management, and recruitment support. Their primary customers are businesses looking to fill staffing gaps quickly and efficiently, as well as job seekers aiming to secure employment opportunities.

As of now, Express Employment operates more than 850 franchise locations across the U.S., Canada, and South Africa. With this broad reach, the franchise serves tens of thousands of businesses and job seekers every day. Their extensive network ensures a steady flow of business for franchisees, benefiting from both local and international demand in the staffing market.

One of the standout features of Express Employment is its comprehensive franchise support system. Franchisees benefit from in-depth training, marketing assistance, ongoing operational support, and access to cutting-edge technology that streamlines staffing processes. They also provide mentorship, peer networking, and resources to help franchisees succeed in the ever-evolving staffing industry.

Express Employment Professionals Franchise Insights

  1. Express Employment Professionals has 791 locations in the U.S., with 788 franchised units, offering a large, well-established network for franchisees.
  2. The franchise ranks consistently among the top staffing franchises by Entrepreneur magazine, reinforcing its leadership position in the staffing industry.
  3. With more than 850 locations worldwide, franchisees benefit from an established and trusted brand, operating in the U.S., Canada, and South Africa.
  4. On average, Express franchises fill over 500,000 job openings every year, showcasing the high volume of business that franchisees handle.

Express Employment Professionals Franchise Key indicators

Growth YOY (%)

0%

vs industry 0%


Total U.S. Franchised Units

788


3-Year Failure Rate

6%

vs industry 16%


Sales-to-Investment ratio

22.8:1

How much does it cost to open an Express Employment Professionals franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening an Express Employment Professionals franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening an Express Employment Professionals franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Express Employment Professionals below from the most recent Item 7 below:

Type of Expenditure  Minimum Investment  Maximum Investment 
Initial Franchise Fee  $40,000  $40,000 
Lease and Deposit  $2,000  $3,000 
Leasehold Improvements  $5,000  $25,000 
Utility Deposits  $200  $600 
Training Costs  $4,000  $7,000 
Office Supplies  $500  $1,000 
Office Equipment  $2,000  $4,000 
Computer System Hardware  $7,000  $10,000 
Furniture and Fixture  $5,000  $12,000 
Signs  $4,500  $6,400 
Insurance  $500  $1,000 
Professional Service Fees  $1,000  $3,000 
Additional Funds (9 months)  $60,000  $100,000 
Total  $132,000  $213,000 

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open an Express Employment Professionals franchise, the required capital involves both the initial investment costs and a net worth requirement set by Express Employment Professionals. Let’s take a closer look below:

  • Initial Investment As shown above, the total estimated initial investment ranges from $132,000 to $213,000. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
  • Liquid assets While the franchise doesn’t provide a specific figure in the provided data, a reasonable estimate would be around $100,000 to $150,000 in liquid assets, ensuring franchisees have the necessary cash flow to manage the business during the initial months.
  • Net worth For similar staffing franchises, it’s typical to have a minimum net worth of $250,000 to $500,000. This helps ensure the franchisee can support both personal and business financial needs during the ramp-up period.

How much does an Express Employment Professionals franchise owner make?

Calculating the salary of an Express Employment Professionals franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Express Employment Professionals franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Express Employment Professionals Revenue & Gross Sales

Based on most recent analysis, Express Employment Professionals franchises achieved a median revenue of $4,805,178. Note that this figure is before the payments need to be made to the staffed personnel. The gross sales margin were roughly $950,000. This financial performance underscores the brand’s robust consumer demand and potential for significant revenue generation.

Which key factors impact the average revenue performance of Express Employment Professionals franchisees?

Several factors likely contributed to the performance of U.S. franchisee median gross sales for Express Employment Professionals in recent years. The ongoing demand for staffing services, driven by labor shortages and companies seeking flexible hiring solutions, likely boosted franchisee sales. Additionally, the continued recovery of industries like manufacturing, logistics, and healthcare increased the need for temporary and contract workers, which is a core service of the franchise. Investments in technology, such as more efficient recruitment platforms, may have also enhanced operational efficiency and client satisfaction, driving growth. Finally, a focus on local marketing and support from the franchise’s national branding efforts could have helped franchisees attract new clients and retain existing ones.

Express Employment Professionals Franchise Operational Costs

If you were to open an Express Employment Professionals franchise, key primary ongoing operational costs would likely include the following:

  • Staffing and payroll As a staffing agency, you’ll need to cover the salaries of your internal staff as well as the wages for the temporary and contract workers you place with clients.
  • Office rent and utilities Depending on your location, office space costs can vary, but you’ll need to budget for monthly rent, utilities, and office maintenance.
  • Technology and software Maintaining recruitment software, payroll systems, and other technology necessary for day-to-day operations will be an ongoing cost.
  • Marketing and advertising (local) While the franchise offers national support, you’ll likely need to invest in local marketing efforts to build relationships with businesses in your area.
  • Insurance Workers’ compensation, general liability, and professional liability insurance will be ongoing costs to protect your business and employees.

Careful planning and budgeting for these operational costs are crucial for the financial health and success of your Express Employment Professionals franchise.

Express Employment Professionals Franchise Fees

When considering an Express Employment Professionals franchise, it’s important to be aware of the ongoing fees associated with running the business. Here’s a breakdown of the key fees you should expect:

  • Royalty Fee Franchisees are required to pay 8% of total billings for both temporary staffing and direct hire services. This fee is due by the 10th day of each accounting period.
  • Marketing Fund Contribution Franchisees contribute 2% of their total billings towards the marketing fund, which is also due by the 10th day of each accounting period. This helps support national branding and advertising efforts.
  • Additional Fees There might be other miscellaneous fees or costs related to technology, compliance, or specific franchise support services.

Being aware of these fees will help you plan your finances accordingly and ensure you’re prepared for the ongoing operational costs of running the franchise.

Express Employment Professionals Franchise Earnings

Based on the most recent data available, Express Employment Professionals franchisees reported median revenue of approximately $4,805,178. However, the gross sales margin is roughly $950,000. For owner-operators, the median operating earnings were estimated to be around $190,000. This figure provides a strong indication of the earning potential for franchisees actively involved in running the business.

These earnings reflect the income that owner-operators can expect after operational expenses but before taxes. It’s important to note that actual earnings may vary based on factors such as location, the franchisee’s involvement, and local market conditions. With strong gross sales and solid earnings potential, Express Employment Professionals continues to be an attractive option for franchisees in the staffing and personnel industry.

How to Open a Express Employment Professionals Franchise

Becoming a franchisee with Express Employment Professionals involves a multi-step process, ensuring you’re fully prepared to launch and operate your business successfully. Here’s an overview of the typical process:

  1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
  2. Preliminary Application & Review You’ll be asked to complete a formal application, which includes financial information. The franchisor reviews your qualifications to ensure you meet the required financial and operational criteria.
  3. Discovery Day You’ll likely attend a Discovery Day, either in person or virtually, where you’ll meet the corporate team, learn more about the franchise, and have an opportunity to ask in-depth questions.
  4. Franchise Agreement Signing Once you’re ready to move forward, you’ll sign the franchise agreement and pay the initial franchise fee to secure your territory.
  5. Training & Preparation Next, you’ll undergo comprehensive training that covers all aspects of running your Express Employment franchise, including staffing, marketing, and day-to-day operations.
  6. Site Selection & Setup If applicable, you’ll work with the franchise team to select a location for your office and set up the business infrastructure, including equipment and staffing.
  7. Business Launch With training complete and your office ready, you’ll begin operations, supported by ongoing franchisor assistance as you build your client base and establish your presence in the local market.

Pros & Cons

Pros

Strong Market Demand: The staffing industry is growing, with consistent demand for temporary, contract, and permanent staffing services across multiple industries.

Established Brand: Express Employment Professionals has over 850 locations worldwide and a strong brand presence, giving franchisees a competitive edge.

Diverse Revenue Streams: You can serve a variety of sectors, including light industrial, office services, and professional placements, giving you multiple opportunities to grow your business.

Scalable Business Model: With a focus on staffing and personnel, this business model is easily scalable, allowing you to expand and increase your earnings as your client base grows.

Cons

Competitive Market: The staffing industry is highly competitive, and standing out among other staffing agencies may require significant effort and local marketing.

Economic Sensitivity: The success of a staffing franchise can be tied to the broader economy—during downturns, demand for staffing may decrease, which could impact profitability.

Intensive Operations: Running a staffing agency can be operationally demanding, especially in managing both clients and temporary workers while keeping up with compliance regulations.

FAQs

Who owns Express Employment Professionals franchise?

  • Express Employment Professionals is privately owned by its co-founders Bob Funk and Bill Stoller. Bob Funk serves as the Chairman and CEO, while Bill Stoller holds the position of Vice Chairman. The company has remained under their leadership since its founding in 1983, helping it grow into one of the largest staffing agencies worldwide.
  • Yes, Express Employment Professionals is a franchise. It offers franchise opportunities to entrepreneurs who want to operate staffing agencies under the Express brand, with comprehensive support and resources provided by the franchisor.
  • Express Employment Professionals ’ biggest competitors include large staffing agencies like ManpowerGroup and Adecco. Alternatives to Express include other staffing franchises like Spherion , AtWork Group , and PrideStaff , all of which operate in similar markets and offer franchise opportunities in the staffing industry.
  • As of the most recent data, Express Employment Professionals has 791 locations in the U.S., of which 788 are franchised locations and 3 are affiliate locations.
  • The most recent calculated 3-year failure rate of Express Employment Professionals was 6% in the U.S.
  • The earnings of Express Employment Professionals franchise owners can vary based on factors such as location, market conditions, and the franchisee's involvement in the business. According to the most recent data, median earnings for owner-operators are approximately $190,000 annually. However, this figure can fluctuate depending on business performance, client demand, and operational efficiency. It’s important to review the Franchise Disclosure Document (FDD) and consult with existing franchisees to get a clearer picture of potential earnings in your specific market.
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