Franchising Since: 1985
Headquarters: Oklahoma City, Oklahoma
Estimated Number of Units: 850
Franchise Description: Express Services, Inc. is the franchisor. The franchisor grants qualified franchisees the right to establish and operate an Express Employment Professionals Business, Specialized Recruiting Group Business, or Express Healthcare Staffing Business. Franchises offer temporary help, temporary staffing, contract staffing, flexible staffing, evaluation hire, temp-to-hire, personnel or department outsourcing, recruiting, long-term staffing and other staffing services. In addition, franchisees will have the option to provide recruiting and placement services for full-time positions. The franchise will provide the services exclusively for certain occupations identified in one or more Authorized Occupations Addenda that are signed concurrently with the Franchise Agreement: Core Occupations, Professional Occupations, and/or Healthcare Occupations.
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Territory Granted: The franchise is for a specific location described in the Franchise Agreement. The territory will be specified in the Franchise Agreement and will be based on information regarding available jobs based on results from GbBIS, a division of Intelligent Direct Inc. There is no minimum territory that the franchisor will grant franchisees and the territory granted may vary depending on the Authorized Occupations Addendum(s) executed. Franchisees must have an office in the territory. As long as franchisees perform their duties under the Franchise Agreement, are not in default under the Franchise Agreement, and have maintained their offices as required, the franchisor will not establish, except as otherwise described in the FDD, other third-party franchises or company-owned outlets selling or leasing the same products or services under the same or different trade name(s) or trademark(s) in the territory during the term of the Franchise Agreement. Franchisees must not target advertising to potential clients located outside their territory without the franchisor’s written approval.
Obligations and Restrictions: Franchisees (or the principal member, shareholder, or stockholder if a corporation, LLC, or partnership) must actively be involved in the day-to-day operation of the business and be the “on-premises” supervisor of the franchise. The on-premises supervisor must have a minimum of 51% percent equity of an entity-franchisee. 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 franchise 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. Franchisees must meet certain minimum performance standards set forth in each of the Authorized Occupations Addendums depending on the services you will offer. The minimum performance standards will vary depending on which services the franchisee is authorized to provide.
Term of Agreement and Renewal: The initial term is five years. The renewal term will be five years. At the end of any renewal term, franchisees may renew for another renewal term, if the franchisor grants them an additional renewal term and requirements are met.
Financial Assistance: The franchisor offers financing under the Bridge to Ownership (BTO) Program, if the franchisee qualifies for and participates in the BTO program. Also, 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. Other than the financing as described, the franchisor does not offer direct or indirect financing in connection with a franchisee’s purchase or operation of the franhise business, or for any other items. The franchisor does not guarantee a franchisee’s notes, lease, or other obligations.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $0 | $40,000 |
Lease and Deposit | $2,000 | $6,000 |
Leasehold Improvements | $5,000 | $25,000 |
Utility Deposits | $200 | $600 |
Training Costs | $4,000 | $25,000 |
Office Supplies | $500 | $1,200 |
Office Equipment | $2,000 | $7,500 |
Computer System Hardware | $7,000 | $12,000 |
Furniture and Fixture | $5,000 | $15,000 |
Signs | $4,500 | $6,400 |
Insurance | $500 | $4,000 |
Professional Service Fees | $1,000 | $6,000 |
Additional Funds | $60,000 | $450,000 |
ESTIMATED TOTAL | $91,700 | $598,700 |
Other Fees
Below is a portion of the other fees listed in the FDD. Please see the FDD for the fees specific to Core Occupations Services, Professional Occupations Services, and Healthcare Occupations Services.
Type of Fee | Amount |
The following entries only apply to Temporary Staffing Services | |
Express Advertising/Marketing Fund | 0.6% of the gross margin. |
Reserve Account | 1% 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 2.25% 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 | 0.054% of the gross associates’ payroll. |
Other Adjustments | Will vary under circumstances. |
Territorial Liquidated Damages | Will vary under circumstances. |
Franchisor’s Portion of Liquidated Damages | Will vary under circumstances. |
Online Business Management Fee | Maximum of $600. |
The following entries apply only to Direct Hire Services | |
Express Advertising/Marketing Fund | 2% of gross receipts. |
Interest | 1.5% per month, but in no event more than the maximum permitted by applicable law. |
Penalty | 10% on unpaid amount. |
Audit | Will vary under circumstances. |
Opt-out franchisees will pay the following fees (for both the Temporary Staffing and Direct Hire 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. |
Penalty | 10% on unpaid amount. |
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 | EDN Communication Monthly Recurring Charges (MRC): $420/month; ESP (eSkill) Testing Package Maintenance Fee (core services offices only): $41.67/month; Cloud Computer Fee: $210/month; User: $49.50/month/user; Test Workstation: $8.28/month/ workstation |
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