Express employment professionals is a business-to-business recruitment franchise that helps Canadian and international companies secure full-time, part-time, and temporary staffing placements. As well as providing the opportunity to build a successful business, Express Employment claim their program delivers a better work/life balance and the potential for franchisees to earn the income they deserve.
Established in 1983, and offering franchise opportunities since 1985, Express Employment’s head office is located in Oklahoma City, Oklahoma. They are the largest staffing franchise and have been named as Entrepreneur Magazine’s top recruitment franchise for 13 years in a row.
Currently, Express has more than 800 franchised offices worldwide and operate in countries such as the US and South Africa.
Express employment professionals at a glance:
Although Express Employment stress that previous experience in the staffing sector is not necessary to run a franchise, they prefer candidates with a minimum of five years’ proven leadership, sales, or sales management experience. If you fit this description and you have a net worth of at least $250,000 and liquid cash of $200,000 an Express franchise may be a suitable business proposition. Be aware that owning an Express Employment Professionals franchise as a ‘hands off’ business is not an option. The company expects all franchisees to be actively engaged in the day to day running of the agency.
Express Employment offers two kinds of product – temporary staffing and direct hire services – and two franchise ownership models. Depending on the chosen franchise option, initial costs can range from low to moderate.
Franchise options – Express Employment Professionals:
Both franchise models require a minimum of three staff (including owner). The initial franchise fee is $40,000. There is a 50% franchise fee discount for qualified veterans. After opening, you are required to pay an array of ongoing fees and charges. They include:
Key Costs Guide | Low | High |
---|---|---|
Franchise fee | $40,000 | $40,000 |
Lease and deposit | $2,000 | $6,000 |
Leasehold improvements | $5,000 | $25,000 |
Training costs | $4,000 | $25,000 |
Office equipment | $2,000 | $8,000 |
Technology hardware and software | $7,000 | $12,000 |
Furniture and fixtures | $5,000 | $10,000 |
Legal and professional services | $1,000 | $3,000 |
Fixtures, supplies, licenses | $4,000 | $6,000 |
Other costs- three months | $15,000 | $250,000 |
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They can be. Express Employment says average first year revenues are +$1million and offices open at least five years generate average revenues of +$7million. However, net profits are dependent on individual franchise costs such as staffing, office overhead and local marketing and promotional activities. Average net profits for staffing agencies in Canada is 10%.
The failure rate is low – averaging 2% in the first year and 6% in the first three years. Express Employment says their average franchise agreement lasts 17 years.
With low to moderate start-up costs and the possibility for rapid growth, owning an Express Employment franchise has the potential to be a solid business opportunity. However, in staffing, like real estate, it’s all about location, location, location. Although Express Employment promises franchisees an exclusive territory with a minimum of 30,000 jobs, it’s where those jobs are situated and the mobility of the local workforce that counts. If the territory is dominated by a few major corporations with low employee churn and limited need for temporary staffing, you may find your staffing business has few customers to sell to and few workers to re-situate. The conclusion: Express Employment franchises that go the distance can deliver significant seven-figure revenues, but thoroughly research available territories before jumping in.
Franchisees are granted an exclusive territory that contains business activity and population density to support a minimum of 30,000 jobs. As long as franchisees perform their duties under their franchise and maintain their offices as required, Express Employment promises not to establish other third-party franchises or company-owned outlets in the territory during the term of the agreement. Franchisees cannot target potential clients located outside their territory without the franchisor’s written approval.
Express Employment Professionals support for franchisees includes:
It starts with an application. Begin the process today.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new staffing business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Canada. Just tell us what you need and leave the rest to us.
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