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Express Employment Professionals Franchise ProfileBusiness Services Franchises > Staffing |
What Are the Initial Investment Requirements for an Express Employment Professionals Franchise?
To open an Express Employment Professionals franchise, the initial investment ranges from $30,950 to $391,000. This includes a franchise fee of $40,000. Potential franchisees should have a cash requirement of $40,000 to $100,000 and a net worth of $100,000 to $500,000. Understanding these financial commitments is crucial for aspiring owners to prepare adequately and ensure they meet the necessary financial criteria.
What Are the Ongoing Fees Associated with an Express Employment Professionals Franchise?
Franchisees of Express Employment Professionals are subject to ongoing fees that include an 8% royalty fee on gross sales and a 2% marketing fee. These fees contribute to the overall operational costs and marketing efforts that help maintain the brand's visibility and competitiveness in the employment services sector. It's essential for potential franchisees to factor these expenses into their financial planning.
What Are the Average Revenue and Profitability Metrics for an Express Employment Professionals Franchise?
The average annual revenue per unit for an Express Employment Professionals franchise is approximately $1,346,028.72, with a median revenue of around $1,280,914.95. The gross profit margin stands at 22.2%, and after accounting for operating expenses, the EBITDA is about $81,781.72, representing 6.1% of revenue. These metrics provide valuable insights into the financial performance and potential profitability of the franchise, helping prospective owners assess the opportunity.
What Is the Typical Breakeven Period for an Express Employment Professionals Franchise?
Express Employment Professionals franchisees can expect a breakeven period of around 21 months, with an investment payback timeline of approximately 24 months. This timeframe indicates how long it may take for franchisees to recover their initial investment and start generating profit. Understanding these timelines is vital for franchisees to manage their cash flow and set realistic financial expectations.
Express Employment Professionals Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Express Employment Professionals Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 4 | 4 | 6 |
| Net Change YoY | 0 | 2 | |
| Franchised Units | 2 | 2 | 3 |
| Net Change YoY | 0 | 1 | |
| Corporate Units | 2 | 2 | 3 |
| Net Change YoY | 0 | 1 |
Initial Investment
The Express Employment Professionals franchise offers a range of initial investment options, with costs ranging from $30,950 to $391,000. The initial franchise fee is set at $40,000, while franchisees should be prepared for additional expenses, including a royalty fee of 8% of gross sales and a marketing fee of 2%.
Financial Performance
On average, each Express Employment Professionals unit generates annual revenue of approximately $1,346,029. The median revenue per unit is reported at $1,280,915, with the lowest annual revenue at $313,288 and the highest reaching $6,414,928. This diverse revenue range highlights the potential profitability of the franchise.
Breakeven and Payback
The breakeven period for an Express Employment Professionals franchise is around 21 months, indicating a relatively quick path to profitability. Additionally, franchisees can expect to recoup their initial investment in roughly 24 months, making it an attractive option for aspiring business owners.
Required Financials
To qualify for an Express Employment Professionals franchise, candidates must demonstrate a net worth between $100,000 and $500,000. Additionally, having liquid cash available in the range of $40,000 to $100,000 is essential to cover initial startup costs and operational expenses.
Corporate Structure
Express Employment Professionals operates as a well-established franchise with a growing presence. As of 2023, there are a total of 6 units, comprising 3 franchised and 3 corporate-owned locations. This steady growth reflects the brand's commitment to expanding its footprint in the employment services industry.
Operational Expenses
Franchisees should anticipate various operational expenses, including rent (ranging from $2,000 to $3,000), utilities ($200 to $600), and office supplies ($500 to $1,000). Overall, the total annual running expenses can range from $30,950 to $61,850, which is essential for budgeting and financial planning.
Frequently Asked Questions
The initial investment to open an Express Employment Professionals franchise ranges from $30,950 to $391,000, which includes a franchise fee of $40,000.