What is an Express Employment Professionals Franchise?
Express Employment Professionals is a global staffing franchise that connects employers with job seekers. This company focuses on temporary staffing services, contract work, and full-time staffing solutions. The franchise model allows individuals to own a business while benefiting from a well-known brand.
Founded in 1983, Express Employment Professionals started with a single office in Oklahoma. Over the years, it expanded rapidly. Today, there are over 800 locations across North America. The company has established itself as a leader in the professional staffing business with direct hire services. It provides staffing solutions for various administrative, industrial, and IT sectors.
Express Employment Professionals holds a significant market share in the staffing industry. According to reports, it ranks among the top staffing companies in the US. This success comes from its strong network and proven systems. Entrepreneur Magazine has ranked it the #1 recruitment franchise in the nation for the last 13 years.
As a franchise opportunity, Express Employment Professionals provides many benefits. Franchise owners receive training and support to help them succeed. Owners can tap into a vast pool of resources and expertise. They also gain access to marketing tools and ongoing support from corporate staff, which makes it easier for new franchisees to establish their businesses.
What’s required to Start an Express Employment Franchise?
Owning an Express Employment Professionals franchise requires specific work experience. While the company stresses that prior experience in staffing is not required, potential franchisees should have at least five years of experience in sales, management, or human resources.
Many successful franchise owners have backgrounds in business ownership or entrepreneurship. This experience helps them manage daily operations effectively. Knowledge of local markets and the ability to build relationships is crucial.
Express Employment Professionals values candidates who have demonstrated leadership skills. Previous roles that involve team management can be advantageous. Franchisees need to lead their staff and ensure quality service for clients.
Net Worth Requirement
Potential franchisees must also meet the following:
- Minimum net worth: $250,000
- Liquid cash: $200,000
- Minimum investment: $150,000
- Maximum investment: $400,000.
Ownership Commitment
Most Express Employment franchises have a minimum five-year franchise agreement. The franchisor expects ownership to be involved in the business’s day-to-day operations, meaning absentee ownership is not an option. The franchise must have at least three staff members, including the franchise owner. In addition, franchise owners are typically required to attend the annual International Leadership Conference.
Training
Express Employment provides many resources to support franchisees. This includes 80 hours of in-classroom training and 40 hours of on-the-job training as a requirement for new franchise owners. They also offer ongoing training sessions.
How much does an Express Employment Professionals Franchise cost?
The initial investment for a traditional office model ranges from $150,000 – $175,000. There are also ongoing costs to consider.
Costs to start an Express Employment Professionals franchise:
- Initial Franchise fee: $40,000.
- Lease & deposit: $2,000 – $6,000.
- Leasehold improvements: $5,000 – $25,000.
- Training: $4,000 – $25,000.
- Office equipment: $2,000 – $8,000.
- Office furniture & fixtures: $5,000 – $10,000.
- Professional services: $1,000 – $3,000.
- Supplies and business licenses: $4,000 – $6,000.
- Other costs: $15,000+.
Ongoing Costs
Franchisees should also know the ongoing costs once they get their Express Employment franchise up and running.
| Expense Type | Cost |
|---|---|
| Royalty Fee | 8% |
| Ad Royalty Fee | 2% |
| Technology Fee | $200 – $400 |
| Training and Support | $300 – $600 |
| Insurance | $500 – $1,200 |
What are the benefits of an Express Employment Professionals Franchise?
Owning an Express Employment Professionals franchise comes with many opportunities. This brand is well-known and respected in the staffing industry. Their strong business model gives franchise owners a reliable path to success. Franchisees benefit from proven strategies and ongoing support.
Franchise owners can earn a good income. The staffing industry continues to grow, providing a steady demand for services. With the right approach, franchisees can tap into this market effectively. They have options to expand their business as they gain experience.
A significant benefit is the focus on work-life balance. Many owners appreciate the flexibility that comes with running their own business. They can create schedules that fit their family needs while pursuing their goals. This balance is crucial for long-term satisfaction.
Partnership with Express Employment Professionals means joining a reputable brand. The company has a strong reputation for its commitment to clients and employees. This recognition helps franchisees attract customers and build trust in their communities.
Franchisees also receive comprehensive training covering everything from operations to marketing strategies. This training prepares them for challenges in the staffing industry, and owners feel confident knowing they have the support of an established leader.
What are the drawbacks of an Express Employment Professionals Franchise?
Owning an Express Employment Professionals franchise has some drawbacks. First, the initial investment can be high. Franchisees may need to pay for equipment, office space, and training. This can add up quickly.
Next, ongoing fees also exist. Franchisees pay royalties based on their revenue, which can reduce profits over time. Some franchisees might feel pressure to meet sales targets, which can lead to stress and affect work-life balance.
Another concern is competition in the staffing industry. Many companies offer similar services, making it harder to stand out. Franchisees must find ways to attract clients and candidates. Marketing strategies can require time and money.
Franchisees also follow strict guidelines from Express Employment Professionals. They must adhere to company policies and procedures. This limits their ability to make independent decisions about their business. Some franchisees may find this restrictive.
Training and support are provided, but they may not cover every situation. Franchisees might face challenges that aren’t addressed in training sessions. This can leave them feeling unprepared.
Lastly, the success of the franchise relies on local market conditions. Economic downturns can impact hiring needs. If job openings decrease, franchisees may struggle to maintain profitability.
Express Employment Professionals Pros & Cons
Pros:
- Strong brand reputation.
- Proven business model.
- Good income potential.
- Emphasis on work-life balance.
- Comprehensive training and support.
Cons:
- High initial investment & ongoing fees.
- Potential competition in the industry.
- Strict guidelines from the company.
- Potential lack of preparation for all situations.
- Reliance on local market conditions for success.
What are the steps to Start an Express Employment Professionals Franchise?
Start by researching the Express Employment Professionals franchise. Understand its business model and market position. Look into the support it offers to franchisees.
Run the Numbers
Ensure you meet the net worth and liquidity requirements. Many new businesses operate at negative cash flow for the first few months. You must be committed to providing the working capital for payroll, rent, utilities, and operating costs.
Complete the Application Process
Express Employment offers a six-step process to start a franchise:
- Step 1 – Virtual Learning Brochure: This online document provides essential information about investment costs, available markets, and financial performance.
- Step 2 – Introductory Call: Speak with a Franchise Development Director about the opportunity. The call will cover your background and qualifications.
- Step 3 – Review the Franchise Disclosure Document (FDD): The FDD provides crucial information. Ensure you study the document and understand all the benefits, risks, and responsibilities before moving forward.
- Step 4 – Validation with Express Franchise Owners: This part of the process involves the opportunity to gain valuable insights from other franchisees.
- Step 5 – Attend Discovery Day: New franchise applicants meet the Express Employment leadership team at their international headquarters in Oklahoma City. This part of the process helps both the franchisor and franchisee determine if it’s the right business partnership.
- Step 6 – Sign the Franchise Agreement: Carefully review the agreement before signing. Once you finalize and sign the agreement, you’ll be on your way to opening your Express Employment Franchise.
Launch the Business
Once the agreement is signed, franchisees undergo training to learn about the company’s operations, systems, and best practices. After training, franchisees work closely with a support team to set up their location, hire staff, and market their services. The grand opening marks the official launch of the franchise, where the community is invited to learn about the new business and its offerings. Throughout the process, Express Employment provides ongoing support and guidance to help franchisees succeed in their new venture.
Frequently Asked Questions
Here are the most common questions about starting an Express Employment Professionals franchise.
How much does an Express Employment Franchise owner make?
Express Employment Professionals franchise owners can earn a variety of salaries. According to Glassdoor, the average salary for a new express staffing franchise owner is around $72,000 per year. Some owners may earn less, starting at about $50,000 annually. Others might see higher earnings, reaching up to $200,000 or more.
Profitability is crucial to a franchisor’s earnings potential. Fortunately, Express Employment Professionals typically have high revenue. According to the company’s website, franchises see average sales of $1,346,028 in the first year. Average sales for franchises operating for five years reach $6.4 million. Profit margins can vary based on operating expenses but can be as high as 10% – 20%. The Financial Disclosure Document can provide more information and industry revenue projection provided by SIA.
Franchise owner satisfaction tends to be high among Express Employment Professionals. Many owners appreciate the support from the knowledgeable franchise owner network. They also value the training provided by the company. This helps them succeed in their business.
Does Express Employment offer exclusive territories?
Express Employment Professionals provides franchise owners with exclusive territories defined by geographical boundaries, ensuring no competition from other Express franchises. This model allows franchisees to focus on business growth, establish strong local relationships, and benefit from market penetration and customer loyalty. Territories are determined based on factors like population density and demand for staffing services, with franchise owners receiving support in selecting the right territory that aligns with their goals and interests.
What Franchise resources does Express Employment offer?
Express Employment offers franchisees a range of resources and support to help them succeed in their business ventures. Some of the critical resources include an initial training program, ongoing training programs, and franchisor resources to help franchisees understand the business model, marketing strategies, and operational processes.
Additionally, Express Employment provides ongoing support through regular communication, regional meetings, and access to a network of experienced franchise owners. Franchisees also benefit from Express Employment’s brand recognition and reputation, which can help attract clients and candidates. Overall, the resources and support provided by Express Employment aim to empower franchisees to build successful staffing businesses within the framework of a proven franchise system.
How long does it take to open an Express Employment Professionals Franchise?
Opening an Express Employment Professionals franchise usually takes several weeks to a few months, depending on location and preparation.
Are there Business Loans to finance an Express Employment Professionals Franchise?
Many entrepreneurs seek franchise business loans to start or support their enterprises. Various financial institutions offer options for prospective franchisees. These loans can cover initial costs like equipment, inventory, and leasing spaces.
Franchisor Financing
Express Employment Professionals offers a unique financing option for potential franchisees called the Bridge to Ownership (BTO) Program. This program provides a pathway for individuals to become franchise owners by offering financing solutions to help cover startup costs. Qualified franchisees pay the $40,000 franchise fee but can receive up to $250,000 for other costs.
Small Business Loans
Many entrepreneurs use small business loans to support and grow operations once they launch the franchise. You may be interested in one of the following small business loans:
- Bad credit business loan.
- Business line of credit.
- Business loans for women.
- Business term loans.
- Equipment financing.
- Invoice factoring.
- Merchant cash advance.
- Revenue-based loan.
- SBA loans.
- Working capital loans.
- ERTC advance.
How to Start an Express Employment Professionals Franchise – Final Thoughts
Starting an Express Employment Professionals franchise can be a rewarding venture. With the right experience and resources, you can build a successful business that meets the needs of your community.
Research further, connect with current franchise owners, and explore financing options. It’s crucial to ensure you meet the requirements to become a franchisee and understand the costs and risks involved.
Contact us to learn more about business franchises or apply for a small business loan. Our alternative financing experts can help you find the best funding program for your business goals.
