Express Employment Professionals Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$91,700 - $503,100
Min Cash Required
$60,000
Total US Locations
786
Business Summary
Express Employment Professionals, Specialized Recruiting Group, or Express Healthcare Staffing businesses provide a variety of staffing and employment services. These services include temporary help, temporary/contract staffing, and direct hire placements for full-time positions. The businesses cater to a broad spectrum of occupations, covering general labor (Core Occupations), specialized professional fields such as legal, finance, accounting, engineering, and technology (Professional Occupations), and licensed medical professionals like registered nurses and medical assistants (Healthcare Occupations). Franchisees operate from a main office within an exclusive territory and have the option to establish additional branch offices or temporary recruiting stations.
Corporate History
Express Employment Professionals was originally incorporated in Colorado as Express Temporary Help Service, Inc. on May 26, 1983. The company underwent a name change to Express Temporary Services, Inc. later that year, and then to its current name, Express Services, Inc., in February 1985. Express Employment Professionals began offering franchises on January 31, 1985, and also operates its own businesses in the staffing industry. The company utilizes trade names such as "Express Employment Professionals," "Specialized Recruiting Group," and "Express Healthcare Staffing." Its affiliates include Alamo Franchise Services, LLC, which owns the brand marks; various international entities franchising or operating staffing businesses in Australia, New Zealand, and South Africa; and other affiliates providing services like payroll, insurance, travel, and a web-based talent acquisition platform (Reflik, Inc.).
Financial Overview
Investment Range
$91,700 - $503,100
Franchise Fee (High)
$120,000
Minimum Cash Required
$60,000
Royalty %
40%
Marketing %
2%
Equipment Costs (Low)
$23,500
Equipment Costs (High)
$86,000
Working Capital
$350,000
Audited Financials
Yes
Offers Financing
Yes
Financing Details
Express Employment Professionals offers financing to qualified franchisees through its Bridge to Ownership (BTO) Program and for the purchase of the Computer System. Under the BTO Program, new territory franchisees can finance up to $250,000, resale territory franchisees up to $450,000, and Emerging Entrepreneur Program graduates up to $270,000. These loans typically start as an 18-month interest-only revolving loan, potentially refinancing into a 24, 30, or 36-month amortizing term loan. The annual interest rate for these loans is variable, based on the Prime Lending Rate, ranging from 4% to 9%. The loans are secured by the franchisee's accounts, gross margin, gross receipts, and other business assets. For the Computer System, Express Employment Professionals may finance up to 100% of the purchase price over 1 to 3 years, with variable annual interest rates ranging from the National Prime Lending Rate to 2% above it, also capped between 4% and 9%. Default on these loans can lead to acceleration of the loan and termination of the franchise agreement.
Performance Metrics
Total US Locations
786
Franchised Units
783
Corporate Units
3
Avg Square Footage
1,317
Franchising Since
1985
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Express Employment Professionals has disclosed two past litigation cases. One was a class action lawsuit filed in March 2012 by an associate, alleging that Express Employment Professionals and a franchisee failed to provide meal periods and pay final wages correctly. This case involved a large number of past and current associates. Express Employment Professionals offered individual settlements and eventually reached a class action settlement that was finalized in December 2021. The second case was filed in August 2020 by a franchisee, Sydlynn Professional Services, Inc., who claimed fraud, misrepresentation, and breach of contract related to their territory and lack of corporate support. Express Employment Professionals denied liability, and the case was settled in July 2021, leading to the termination of the franchisee's agreement and the closure of their office. Both cases are now resolved, and Express Employment Professionals has no currently effective injunctive or restrictive orders against it.
Bankruptcy History
Express Employment Professionals has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Express Employment Professionals franchisees must apply between 6 to 12 months before their current term ends. If approved, renewal is conditional on several factors: the franchisee must be in substantial compliance with their agreement, have paid all outstanding fees, and sign Express Employment Professionals' current franchise agreement, which might have different terms. Franchisees and their managers are also required to attend and satisfactorily complete re-training or refresher training programs. If the franchise has not achieved "Circle of Excellence" status within the first four years, the franchisee might need to present a business case for renewal to Express Employment Professionals' leadership. Additionally, the office must be updated to meet current design and specification standards, and the franchisee must sign a general release of any claims against Express Employment Professionals and its affiliates.
Training & Support Program
Franchisor Assistance
Express Employment Professionals provides extensive support to its franchisees. Before opening, the franchisor offers initial training, lists approved suppliers and specifications for equipment and signs, helps arrange insurance coverage for associates, provides operating manuals and sales programs, and offers guidance on setting up procedures and records, including suggested interior layouts and design. For ongoing operations, Express Employment Professionals provides continuous advice and assistance via phone (including a toll-free number) and in-person visits from corporate representatives, especially during the first year. They also administer all accounting, payroll, billing, and tax records for associates (unless the franchisee opts out of payroll services). Franchisees receive ongoing marketing and advertising materials, participate in a national advertising fund, and are granted use of proprietary software and testing packages for matching clients with candidates. Express Employment Professionals also commits to keeping manuals updated, notifying franchisees of service requests in their territory, and indemnifying them for certain claims related to associate activities if procedures are followed. Additional training programs and an annual International Leadership Conference are also provided.
Initial Training Hours
110
Training Location
Oklahoma City, OK; Tualatin, OR; franchisee's office; or virtually.
Ongoing Support
Express Employment Professionals offers ongoing support to its franchisees through various channels. This includes continuous advice, guidance, and assistance provided via correspondence, telephone, and personal instruction on all aspects of operating and promoting the franchise, accessible through a toll-free number. Corporate representatives conduct at least two visits per year to the franchisee's location (one of which may be a virtual meeting), offering assistance with sales development and promotion. Franchisees also receive updated marketing and advertising materials, participate in special sales campaigns, and contribute to and benefit from the Express Advertising/Marketing Fund. Express Employment Professionals also keeps franchisees informed of relevant industry news and developments. Franchisees are required to attend annual conferences, such as the International Leadership Conference or Catalyst conference, at their own expense.
Franchise Requirements
Ideal Candidate Profile
Express Employment Professionals seeks franchisees with a desire for business ownership and specific industry or leadership experience. Ideal candidates often have a minimum of 3 to 5 years of experience in the staffing industry, or a minimum of 3 years as an Express employee. For those who lack leadership experience or financial capabilities, the Emerging Entrepreneur program offers a 12-month leadership training path, after which qualified candidates may receive financial assistance to become franchisees. The franchisor also offers a Conversion Program for existing independent staffing firm owner/operators. All franchisees, or their principal owners (who must hold at least 51% equity), are required to be actively involved in the day-to-day operations and serve as the on-premises supervisor of their franchise.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Limited
Staff Count
3
Territory Size Requirements
The Express Services, Inc. FDD indicates that the territory for an Express Employment Professionals, Specialized Recruiting Group, or Express Healthcare Staffing business will be specified in the individual Franchise Agreement, based on information regarding available jobs from GbBIS, a division of Intelligent Direct Inc. The franchisor states there is no minimum territory size granted, and the size may vary depending on the specific Authorized Occupations Addendum the franchisee executes. The franchisor reserves the right to adjust and modify the territory boundaries as it deems necessary or appropriate, which could result in a reduction of the territory area. However, the document does not provide specific, measurable criteria such as a fixed radius, minimum population, or specific zip codes that generally define the size of a territory for any of the Express Services, Inc. franchise brands.
Staffing Notes
Express Employment Professionals requires a minimum of three internal staff members: a Sales Representative, a Staffing Consultant, and a Front Office Coordinator. The franchisee, or their principal owner, must be actively involved in the day-to-day operations and serve as the on-premises supervisor. For Professional Occupations Services, if the franchisee acts as the Specialized Recruiting Group (SRG) team lead, a separate dedicated and trained manager is required for all non-SRG services.