Spherion Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$211,725 - $423,925
Total US Locations
192
Business Summary
Spherion Staffing, LLC offers franchises that provide high-quality general staffing services to clients. This includes temporary staffing and permanent placement services for occupations such as office, clerical, non-clinical healthcare, call center, administrative, and semi-skilled/unskilled industrial roles. Spherion Staffing, LLC identifies, recruits, assesses, and deploys talent for various customers. Franchisees are responsible for developing and supporting customers, applicants, and temporary employees, and Spherion Staffing, LLC pays them a commission based on the gross profit generated from these services. An optional addendum may allow franchisees to expand services to include professional roles in legal, finance, accounting, engineering, marketing, information technology, and management.
Corporate History
Spherion Staffing, LLC was incorporated in Delaware on October 22, 2008, as a successor to SFN Professional Services, LLC (formerly Spherion Atlantic Enterprises, LLC). The company and its predecessors have been active in the staffing business since 1946 and began offering franchises in the staffing business in 1956. Spherion Staffing, LLC is an indirect wholly-owned subsidiary of Randstad N.V. In 2012, Randstad North America, Inc. transitioned all its company-owned Spherion branded offices to the Randstad brand. Currently, Spherion Staffing, LLC offers franchises under the Spherion brand for general staffing services.
Financial Overview
Investment Range
$211,725 - $423,925
Franchise Fee (High)
$60,000
Marketing %
0.25%
Equipment Costs (Low)
$35,000
Equipment Costs (High)
$90,000
Working Capital
$179,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Spherion Staffing, LLC has received an unqualified audit opinion, indicating that its financial statements present fairly in all material respects. The company maintains positive working capital, with $43,366 thousand in 2024 and $39,316 thousand in 2023. However, its net income has shown a declining trend over the past three fiscal years, decreasing from $6,945 thousand in 2022 to $3,278 thousand in 2024. Spherion Staffing, LLC operates under a centralized cash management system with its parent company, Randstad North America, Inc., which means it does not hold its own cash or cash equivalents; all cash operations are managed by the parent, with net transfers to or from the parent adjusting member's equity.
Financing Details
Spherion Staffing, LLC generally requires franchisees to secure initial and ongoing capital from their own sources. However, Spherion Staffing, LLC effectively finances temporary employee payroll by paying temporary employees and then billing clients, with franchisees only incurring interest on their share of receivables after 60 days. Spherion Staffing, LLC also offers two workers' compensation financing options: a standard pay-as-you-go system that caps monthly charges at 150% (or 200%) of average historical expense, and a loss fund option where estimated annual costs are deducted monthly, with year-end adjustments. If a franchisee choosing the loss fund option owes money at year-end, they can apply for a loan of up to 12 months. These loans are repaid with interest at the Prime Rate plus an additional percentage based on the franchisee's credit risk, and are secured by the franchise's assets, with personal guarantees required from owners. Spherion Staffing, LLC does not currently sell or assign these franchisee loans to third parties, nor does it receive payments from other lenders or guarantee franchisee obligations to others.
Performance Metrics
Total US Locations
192
Franchised Units
189
Corporate Units
3
Avg Square Footage
1,500
Franchising Since
1956
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Spherion Staffing, LLC has no litigation that is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
Spherion Staffing, LLC has no bankruptcy information to report for itself or its key management personnel in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Spherion Staffing, LLC franchisees must provide written notice between 6 and 12 months before the agreement expires. They must be in full compliance with the franchise agreement and not have been in default during the final year of the term. Renewing franchisees are required to sign the then-current form of franchise agreement, which may contain different terms and conditions, and also execute a general release of Spherion Staffing, LLC and its affiliates.
Training & Support Program
Franchisor Assistance
Spherion Staffing, LLC provides pre-opening assistance including initial training, confidential memoranda, manuals, software, and a security policy. They also assist with selecting and approving the office location and provide guidance on office layout. Ongoing support includes making forms, supplies, and standardized sales and promotional programs available. Spherion Staffing, LLC handles weekly payroll for temporary employees, including taxes and other direct labor costs, and prepares and delivers invoices to customers. They remit commissions to franchisees monthly, provide advice on collections, and arrange and pay for accrued insurance expenses like workers' compensation and liability. Franchisees also receive access to market data for identifying customers and candidates, and Spherion Staffing, LLC matches contributions to the Marketing Fund.
Initial Training Hours
390
Training Location
Atlanta, Georgia & Online
Ongoing Support
Spherion Staffing, LLC provides continuous support through additional training sessions available online, by phone, webinar, e-learning, or in-person. These include advanced recruiter training sessions, advanced sales training programs (Selling the Spherion Way and Sandler Sales and Solution Design Training), and national/regional meetings covering sales, advertising, operating procedures, insurance, and legal developments. Spherion Staffing, LLC handles payroll processing, customer billing, data maintenance, and provides online and telephone support for its computer system. They also offer advice and guidelines for customer collections, arrange and pay for insurance-related expenses, and provide access to market data.
Franchise Requirements
Ideal Candidate Profile
Spherion Staffing, LLC seeks managing owners who can devote their full time and best efforts to the business's management and operation. They should possess strong management skills and financial resources. For those with a Professional Services Addendum, an additional full-time professional services employee may be required. Spherion Staffing, LLC values candidates with a minimum of 5 years' experience in the general staffing industry, as this qualifies them for a discount on the initial franchise fee. When considering transfers, Spherion Staffing, LLC looks for purchasers who meet or exceed current new franchisee requirements, including sufficient capital, business experience, character, financial and managerial capability, and an absence of conflicting business interests.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
non-exclusive
Staff Count
3
Territory Size Requirements
Spherion Staffing franchise territories are defined as a specific geographic area, which typically consists of one or more political jurisdictions such, as a city, county, parish, or township, or a defined list of zip codes. The size of the market, based on temporary help payroll, determines the initial franchise fee, ranging from $30,000 for markets with $0-$25,000,000 in temporary help payroll (Tier 4) up to $60,000 for markets with $300,000,001-$500,000,000 in temporary help payroll (Tier 1). While the economic potential of the market is tiered, the physical territory is defined by these governmental or postal boundaries. Spherion Staffing will not establish another Spherion branded office providing General Staffing Services within a franchisee's designated Area. However, the franchisor or its affiliates may operate or franchise other businesses under different trademarks that offer similar services within the same territory.
Staffing Notes
Spherion Staffing, LLC requires that a Managing Owner devote full time and best efforts to the franchised business. If the Managing Owner is permitted to work less than full-time, they must remain actively involved and hire a minimum of one full-time manager, one full-time salesperson, and one full-time recruiter. The Managing Owner or the hired manager must provide in-person supervision of the business. All employees must sign employment contracts that include confidentiality and non-competition clauses. These employees are also required to complete all company-prescribed training programs at the franchisee's expense. The initial investment estimates include salaries for one salesperson and one recruiter, with an additional recruiter potentially needed for franchisees offering Professional Staffing Services.