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Express Employment Professionals Franchise Cost & Fees

Date of Incorporation: 1983
Franchising Since: 1985
Headquarters: Oklahoma City, Oklahoma

Business Description: Express Employment Professionals provide a variety of services, including flexible staffing, temporary/contract staffing, career placement, and professional search business.

Franchise Offer: The franchise offered may provide two kinds of services: Temporary/Contract Staffing, known as “Flexible Staffing,” which is required in the Franchise Agreement, and Career Placement – Professional Search known as “Career Placement.” In addition, Recruiting Stations and Brach Offices within franchisee territories may be set up with the appropriate addendums. Three programs are offered by the franchisor to assist franchisees.

  1. Bridge to Ownership (BTO) Program: Offers qualified staffing industry employees an opportunity to become franchisees
  2. Industry Pro Program: Offers qualified staffing industry employees an opportunity to become franchisees,
  3. Conversion: Offers qualified independent staffing firms the opportunity to become franchisees.

Financial Assistance: If the franchisee qualifies for and participates in the BTO program, financing will provided. Franchisees are required to purchase all items of the Computer System and Computer Upgrades through the franchisor, for cash or on financing if the franchisor is at that time financing these items. If franchisees decide to obtain financing from the franchisor for such purchase, and the franchisor decides, in its sole discretion, to provide financing to franchisees, they will be required to sign a Promissory Note. Other than the financing as described above, the franchisor does not offer direct or indirect financing in connection with franchisees’ purchase or operation of the Express Employment Professionals Business, or for any other items. The franchisor does not guarantee franchisees’ notes, lease, or other obligations.

Training and Assistance: The franchisor will provide, and franchisees must attend, an initial training program of up to two weeks in Oklahoma City, OK, and one week at a designated site for field training, during which the franchisor will train franchisees to operate the Express Employment Professionals Business. The franchisor will provide refresher training programs for franchisees and their manager or other employees to attend at Regional Training Sites, Regional Meetings, and the annual International Leadership Conference, at locations to be designated by the franchisor, and at franchisees’ expense. Franchisees shall not be required to attend additional training for operation of the Branch Office, but franchisees will be responsible to train their employees for the operation of the Branch Office.

Territory: The territory will be specified in the Franchise Agreement and will have a minimum of 30,000 jobs based on results from the SCR’s software, Portfolio. Franchisees must not target advertise to potential clients located outside the territory without written approval.

Term of Agreement and Renewal: The initial term is five years. The renewal term will be equal to the term of the then-current form of the Franchise Agreement but in no event will be less than five years. At the end of any renewal term, the franchisee may renew for another renewal term..

Obligations and Restrictions: The franchisee or principal stockholder must actively be involved in the day-to-day operation of the business. Currently, the Manual requires a minimum of three internal staff members: a Sales Representative, a Staffing Consultant, and a Front Office Coordinator. Franchisees must operate the Express Employment Professionals Business in accordance with the methods, standards, and specifications as the franchisor may from time to time prescribe in the Manual or otherwise in writing.

Estimated Number of Units: 725

Investment Tables:
Initial Investment for a Single Core Model
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Lease and Deposit $2,100 $2,700
Leasehold Improvements $4,000 $5,000
Utility Deposits $200 $600
Training Costs $3,300 $6,500
Office Supplies $300 $400
Office Equipment $6,200 $6,500
Computer System Hardware $12,000 $14,500
Furniture and Fixture $8,000 $8,600
Signs $3,000 $4,000
Insurance $400 $600
Professional Service Fees $1,000 $2,000
Additional Funds $44,500 $53,600
ESTIMATED TOTAL $120,000 $140,000
Initial Investment for a Single Expanded Model
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Lease and Deposit $2,200 $2,300
Leasehold Improvements $4,000 $5,000
Utility Deposits $200 $600
Training Costs $9,900 $19,500
Office Supplies $500 $600
Office Equipment $7,200 $7,500
Computer System Hardware $13,500 $16,500
Furniture and Fixture $9,000 $10,100
Signs $3,000 $4,000
Insurance $400 $600
Professional Service Fees $1,000 $2,000
Additional Funds $84,100 $91,300
ESTIMATED TOTAL $170,000 $195,000
Initial Investment for a Branch Office
Name of Fee Low High
Branch Office Fee $3,000 $3,000
Lease and Deposit $500 $2,000
Leasehold Improvements $500 $10,000
Utility Deposits $500 $1,000
Office Supplies $250 $500
Office Equipment $1,500 $3,000
Computer System & Required Software $3,000 $10,000
Furniture and Fixture $1,000 $3,000
Signs $2,000 $3,000
Insurance $250 $1,000
Professional Service Fees $250 $750
Additional Funds $20,000 $30,000
ESTIMATED TOTAL $32,750 $67,250
Other Fees
Type of Fee Amount
Franchisor’s Portion of the Gross Margin 40% of the Gross Margin.
Minimum Monthly Gross Margin Will vary under circumstances.
Liquidated Damages Will vary under circumstances.
Express Advertising/Marketing Fund 0.6% of the Gross Margin.
Reserve Account 0.6% of Your portion of the Gross Margin.
Charge-back of Past Due Amounts Will vary under circumstances.
Finance Charges The greater of 1.5% per month or an interest rate of 2% over the National Prime Lending Rate as reported in the Wall Street Journal, but not to exceed the maximum permitted by applicable law.
Charge-back of Improper Payments Will vary under circumstances.
Cost of Misclassification of Workers' Compensation Will vary under circumstances.
The Claim/Indemnity Plan Contribution 0.05% of the gross associates payroll will be credited to the Claim/Indemnity Plan.
Other Adjustments Will vary under circumstances.
Territorial Liquidated Damages Will vary under circumstances.
Software, Testing, or Training Programs 40% percent of compensation received.
The following entries will apply to the Career Placement portion of the Express Employment Professionals Business
Express Advertising/Marketing Fund 2% of Gross Receipts.
Franchisor’s Portion of the Gross Receipts 8% of Gross Receipts of the Career Placement portion of the Express Employment Professionals Business.
Interest 1.5% per month, but in no event more than the maximum permitted by applicable law.
Audit Will vary under circumstances.
Instead of the fees described above, opt-out franchisees will pay the following fees (for both the Flexible Staff and Career Placement portions)
Royalty 8% of the Total Billings.
Marketing Fund Contribution 2% of the Total Billings.
Interest 1.5% per month, but in no event more than the maximum permitted by applicable law.
Audit Will vary under circumstances.
The following fees are applicable to all franchisees
Software, Testing, or Training Programs 40% percent of compensation received.
Transfer Fee 10% of the total sales price received not less than $5,000 or more than 50% of the then current initial franchise fee.
Branch Office Fee $3,000
Recruiting Station Fee $300
Indemnification Will vary under circumstances.
Mediation Costs Will vary under circumstances.
Services and Support of the Computer System and Required Software Subscriptions

Communication Fee: $385/month
ESP (Prove It!) Testing Package Maintenance Fee: $41.67/month;

Microsoft Software Server: $64.32/Month

User: $26.52/Month

Test Workstation: $8.28/Month

The above information has been taken from the FDD of Express Employment Professionals. Year of FDD: 2015

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