
![]() |
Spherion Franchise ProfileBusiness Services Franchises > Staffing |
To become a Spherion franchisee, you should prepare for an initial investment that ranges between $214,325 and $342,575. This includes a franchise fee of $40,000. Additionally, you will need to demonstrate a net worth between $300,000 and $500,000, and have cash reserves of $125,000 to $176,000 available to cover startup costs and initial operating expenses.
Spherion franchisees are required to pay an ongoing royalty fee of 8% of their gross sales. There is also a marketing fee of 1% to support brand promotion and local advertising efforts. These fees are essential for maintaining brand standards and driving customer engagement, which can significantly impact your franchise's success.
The average annual revenue per unit for a Spherion franchise is approximately $6,004,383, with a median annual revenue of $3,188,311. However, revenue can vary widely, with the lowest recorded annual revenue at $99,569 and the highest at $41,265,475. Understanding these figures can help you assess the potential profitability of your investment.
Franchisees can expect to reach the breakeven point in about 11 months, which is relatively quick in the franchise industry. The investment payback period is estimated at 42 months, providing a clear timeline for when you might start seeing a return on your investment. This information is crucial for planning your financial strategy and assessing the viability of your franchise venture.
Spherion 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.
Net Worth Required:
Investment Payback:
Franchise Fee:
Royalty Fee:
Marketing Fee:
Breakeven Time:
Initial Investment:
Cash Required:
Average Revenue:
Median Revenue:
Highest Revenue:
Lowest Revenue:
Industry:
Category:
Leadership:
Corporate Address:
Funding Year:
Parent Company:
Spherion 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 | 200 | 208 | 211 |
Net Change YoY | 8 | 3 | |
Franchised Units | 200 | 208 | 209 |
Net Change YoY | 8 | 1 | |
Corporate Units | 0 | 0 | 2 |
Net Change YoY | 0 | 2 |
The Spherion franchise offers a low initial investment range of $214,325 to $342,575, making it accessible for aspiring entrepreneurs. The initial franchise fee is $40,000, with ongoing royalty fees set at 8% of gross sales and a 1% marketing fee. It requires a cash amount between $125,000 and $176,000, along with a net worth of $300,000 to $500,000 to ensure franchisees are financially prepared for operations.
Spherion franchises demonstrate significant revenue potential, with an average annual revenue of $6,004,383 per unit. The median revenue stands at $3,188,311, while the range of annual revenues varies widely, from as low as $99,569 to as high as $41,265,475. This diversity in revenue showcases the varying levels of success franchisees can achieve based on market conditions and operational effectiveness.
Spherion has shown steady growth in its franchise network, expanding from 200 franchised units in 2021 to 209 units in 2023. This growth indicates a healthy demand for the brand and its services, as well as a supportive franchise system that encourages new franchisees. The addition of corporate units, from none in 2021 and 2022 to two in 2023, reflects a strategic move to enhance brand presence and operational support.
Franchisees can expect to reach breakeven within approximately 11 months of operation, a promising timeline that highlights the potential for quick financial recovery. The investment payback period is estimated at 42 months, allowing franchisees to plan their financial strategies effectively while working toward profitability.
The average operating expenses for a Spherion franchise are estimated at $1,000,000, which is about 16.7% of revenue. Key expenses include salaries and wages averaging $88,446 annually, along with other variable costs such as insurance, utilities, and marketing. Understanding these operational costs is crucial for franchisees to manage their budgets and maintain profitability.
Spherion provides comprehensive support to its franchisees, which includes training, marketing assistance, and operational guidance. This support system is essential for franchisees, especially those new to the industry, as it helps them navigate challenges and optimize their business operations. The ongoing relationship with the franchisor ensures that franchisees are equipped with the tools and knowledge needed to succeed in the competitive staffing industry.
Frequently Asked Questions
The initial investment for a Spherion franchise ranges from $214,325 to $342,575, which includes a franchise fee of $40,000.