Complete investment analysis based on official FDD data
Total Investment
$132,000 – $213,000
Franchise Fee
$40,000
Royalty Rate
8.0%
The total initial investment to open a Express Employment Professionals franchise ranges from $132,000 to $213,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.
Midpoint estimate: $172,500
$40,000
One-time initial fee
The Express Employment Professionals franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Express Employment Professionals brand and is included in the total initial investment range above.
Royalty Fee
8.0%
of gross revenue
Ad/Marketing Fund
2.0%
of gross revenue
Total Ongoing Fee Burden: 10.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Our portion of the Gross Margin | 40.0 | PCT | Franchisor retains 40% of Gross Margin, franchisee receives 60%. Paid on 25th day of each month. Applies to Temporary Staffing portion only. |
| Express Advertising/Marketing Fund (Temporary Staffing) | 0.6 | PCT | Withheld from franchisee's portion of Gross Margin on 25th day of each month. Joint contribution totals 1% (franchisor pays 0.4%, franchisee pays 0.6%). |
| Reserve Account | 1.0 | PCT | Deducted monthly on 25th day. Used to cover uncollectible accounts, finance charges for accounts over 60 days, and charge-backs for accounts over 75 days unpaid. |
| The Claim/Indemnity Plan contribution | 0.056 | PCT | Withheld monthly on 25th day. Limits exposure for insurance policy deductibles and certain claims. Amount may be adjusted up or down. |
| Online Business Management Fee | N/A | FIXED | Maximum annual commission deduction of $600 from Gross Margin portion to cover online business management expenses. |
| Express Advertising/Marketing Fund (Direct Hire) | 2.0 | PCT | Withheld from Gross Receipts for Direct Hire portion. Paid directly to Express Advertising/Marketing Fund. |
| Our Portion of the Gross Receipts | 8.0 | PCT | Franchisor retains 8% of Direct Hire Gross Receipts, franchisee receives 90%. Remitted on 25th day of each month. Note: Total adds to 98% (8% royalty + 2% ad fund = 10% to franchisor, 90% to franchisee). |
| Royalty (Opt-out Franchisee) | 8.0 | PCT | Alternative fee structure for Opt-out Franchisees only. Due 10th day of each Accounting Period. Replaces the separate Temporary Staffing and Direct Hire royalty structures. |
| Marketing Fund Contribution (Opt-out Franchisee) | 2.0 | PCT | Alternative fee structure for Opt-out Franchisees only. Due 10th day of each Accounting Period. |
| Software, testing, or training programs | 40.0 | PCT | Due 15th day of month following receipt. Applies to compensation not reportable under Franchise Agreement. Applicable to all franchisees. |
| Transfer Fee | 10.0 | PCT | Maximum of 50% of then-current initial franchise fee. Due prior to transfer. No fee for transfers to franchisee's corporation, LLC, spouse, or adult children. |
| Branch Office Fee | 3000.0 | FIXED | Due when signing Branch Office Addendum. For opening a Branch Office within franchisee's Territory. |
| Recruiting Station Fee | 300.0 | FIXED | Due when signing Recruiting Station Addendum. For opening a Recruiting Station within franchisee's Territory. |
| Services and Support of the Computer System and Required Software | N/A | FIXED | EDN Communication MRC: $385/month; ESP Testing Package: $41.67/month; Cloud Computer: $210/month; User: $49.50/month/user; Test Workstation: $8.28/month/workstation. Amounts may change upon franchisor notice. |
| Interest (Direct Hire underreporting) | 1.5 | PCT | Charged if inspection shows Gross Receipts exceeded reported amount. Not to exceed maximum permitted by law. Due upon demand. |
| Penalty (Direct Hire underreporting) | 10.0 | PCT | Charged if inspection shows Gross Receipts exceeded reported amount. Due upon demand. |
| Audit (Direct Hire) | N/A | VARIABLE | Franchisee pays audit costs if reported Gross Receipts understated by 3% or more. Also applies to Opt-out Franchisees. |
| Interest (Opt-out Franchisee late payment) | 1.5 | PCT | Charged on overdue payments not paid 30 days beyond original due date. Not to exceed maximum permitted by law. |
| Finance Charges | N/A | VARIABLE | Greater of 1.5% per month or 2.25% over National Prime Lending Rate, not to exceed maximum permitted by law. Due upon demand. |
| Minimum Monthly Gross Margin | N/A | VARIABLE | Currently 10% or $1.75/hour minimum. If client account doesn't meet minimum, franchisor's portion calculated based on minimum and deducted from franchisee payments. Withheld monthly on 25th. |
| Charge-back of Past Due Amounts | N/A | VARIABLE | If account unpaid for 75 days (or other period determined by franchisor), invoice charged back to franchisee. Deducted from reserve account and/or Gross Margin portion. |
| Charge-back of improper payments | N/A | VARIABLE | Full deduction from monies due to franchisee for payments based on forged time slips or fraudulent/erroneous authorizations. Due upon demand. |
| Cost of mis-classification of workers' compensation | 100.0 | PCT | Franchisee responsible for 100% of additional premium from using wrong workers' comp classification code over period of mis-classification. Due upon demand. |
| Liquidated Damages (client hiring violation) | N/A | VARIABLE | If client hires Associate in violation of contract terms, liquidated damages divided between franchisee and franchisor per Manual. Due upon demand. |
| Territorial liquidated damages | N/A | VARIABLE | Charged if franchisee sends Associates to client location in another franchisee's territory. Due upon demand. |
| Other adjustments | N/A | VARIABLE | Adjustments for unsatisfactory work credits, incentive coupons, special overtime, or other deductions deemed necessary by franchisor. Due upon demand. |
| Indemnification | N/A | VARIABLE | Franchisee must indemnify franchisor for claims from unapproved contracts or franchisee's business operations. Due upon demand. |
| Mediation Costs | 50.0 | PCT | Each party pays own costs plus 50% of mediator/agency costs. As arranged. |
Category
Business Services
System Size
791 units
Franchise Score
out of 100
Express Employment Professionals operates as a staffing agency providing temporary and permanent employment solutions for businesses across various industries. The franchise specializes in matching qualified candidates with job opportunities while offering recruitment, payroll, and HR services.
Median Revenue
$2,407,160
per year, per location
Mean Revenue
$2,510,910
per year, per location
Estimated Owner Profit
$601,790
per year
Profit Margin
25.0%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 0.3 years
Based on midpoint investment of $172,500 and estimated annual owner profit of $601,790.
Avg. Annual Closure Rate
0.4%
Low risk — below industry average
Net Unit Growth
-778 units
From 2021 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2021 | 778 | +21 | -6 | — | 782 |
| 2022 | 782 | +17 | -3 | — | 789 |
| 2023 | 789 | +21 | -5 | — | 788 |
| 2024 | 10 | +17 | — | — | — |
Based on the FDD data, here is a data-driven snapshot of the Express Employment Professionals franchise opportunity:
Overall Score
85/100
Strong opportunity
Est. Payback Period
0.3 yrs
Fast payback
Risk Level
Low
0.4% annual closure rate
Express Employment Professionals scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,407,160 and a combined fee burden of 10.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Express Employment Professionals franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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