Express employment professionals franchise

Hassle-free business loans to start your Express Employment Professionals franchise.

Express employment professionals is a business-to-business recruitment franchise that helps US 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.

Express employment professionals business details

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 in the US and have been named as Entrepreneur Magazine’s top recruitment franchise for 13 years in a row. 

Currently, Express has more than 860 franchised offices across the US as well as franchisees in Canada and South Africa. 

Express employment professionals at a glance:

  • US stores: Approximately 860
  • Required Investor net worth: $250,000
  • Required investor liquid cash: $200,000
  • Min. investment: $150,000
  • Max. investment: $400,000
  • Standard franchise term: 5 years

Can I start an Express employment professionals franchise?

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.

How much does an Express employment professionals franchise cost?

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:

  • Traditional Office Model: Requires an investment ranging from $150,000 to $175,000 and an active role in new business development by the franchise owner. In this model, franchisees attend customized training and will manage one recruiting staff member.
  • Specialized Recruiting Group Office Model: Requires an investment ranging from $200,000 to $400,000 and applies to pre-designated territories with a high propensity for professional staffing. In this model, franchisees attend customized training and will manage two recruiting staff members.

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:

  • Gross margin fee: 40% of the gross margin (temporary staffing services)
  • Gross receipts fee: 8% of gross receipts (direct hire services)
  • Brand marketing and promotion fee: 0.6% of the gross margin (temporary staffing), 2% gross receipts (direct hire)
  • Computer hardware and software maintenance and support: Up to $2,000 per year
  • Finance charges: The greater of 1.5% per month or an interest rate of 2.25% over the National Prime Lending Rate as reported in the Wall Street Journal, but not to exceed the maximum permitted by applicable law
  • Transfer assignment fee: $3,000

Software, testing, or training programs: 40% of compensation received

Estimated key costs to open an Express employment professionals franchise:

Key Costs GuideLowHigh
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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Are Express employment professionals franchises profitable?

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 the US is 10%.

What is the failure rate for an Express Employment Professionals franchise?

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.

Why should you start an Express employment professionals franchise?

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.

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What are the franchise territory policies for Express employment professionals?

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.

What franchise resources does Express employment professionals offer?

Express Employment Professionals support for franchisees includes:

  • Training: To begin, franchisees must attend an initial training program of up to one week in Oklahoma City, Oklahoma, during which the franchisor trains franchisees to operate their Express Employment business. Further training may be provided, at franchisor’s discretion, to train the franchisee to operate the direct hire portion of the Express Employment business. The franchisor may also provide additional training programs for franchisees at the annual International Leadership Conference (ILC). Note that attendance at the annual ILC is mandatory for all franchisees.
  • Marketing support: The franchisor helps its franchisees with advertising and marketing support. 
  • Third-party financing: Express Employment provides limited financial support for investors seeking franchise funding. Alternatively, you could work with the many independent funders who provide business loans to franchise operators.
  • Technology and innovation: The company offers initial technology support and access to proprietary software. Franchisees must purchase all items of the computer system and any computer upgrades through the franchisor.

What is the process for starting an Express employment professionals franchise?

It starts with an application. Begin the process here.

Secure franchise funding with Swoop

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 the US. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

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