Express Employment Professionals

## Executive Summary

Express Employment Professionals stands as the dominant staffing franchise in North America, with nearly 900 locations generating $3.7 billion in system-wide revenue in 2024. The financial performance is exceptional: mature territories average $5.76 million in annual sales with estimated franchisee earnings of $473,000-$709,000. At $132,000-$213,000 total investment with a 1.8-3.8 year payback period, this represents one of the strongest franchise opportunities in any category. The recent passing of both co-founders introduces leadership transition risk, but the system depth and financial metrics make this a top-tier investment for qualified candidates.

## The Business

Express Employment Professionals operates as a full-service staffing agency, connecting employers with temporary, contract, and permanent placement workers across administrative, commercial, and professional sectors. Franchisees manage local offices that recruit, screen, and place workers with business clients.

The business model generates revenue through markup on hourly billing rates for temporary workers, plus placement fees for permanent hires. The recurring nature of staffing relationships creates revenue stability, while economic cycles drive demand variability. First-year offices average over $1 million in sales, demonstrating strong ramp-up potential.

## The Numbers

**Initial Investment:** $132,000 - $213,000

**Franchise Fee:** $0 - $40,000

**Royalty:** 8% of gross sales

**Franchisee Portion of Gross Margin:** 40%

**Financial Requirements:** Adequate working capital for payroll float

**Item 19 Performance (2024):** - Territories open 24+ months: $5,380,571 average sales - Territories open 60+ months: $5,764,669 average sales - First-year offices: $1,098,880 average sales - Estimated franchisee earnings: $472,882 - $709,322 - Payback period: 1.8 - 3.8 years

The payback period under 4 years represents exceptional investment efficiency for a service business.

## System Health

Express Employment Professionals operates approximately 870 locations globally, with 791 in the United States. The system has demonstrated remarkable consistency, ranking as the top staffing franchise on Entrepreneur Franchise 500 for 13 consecutive years and earning a spot in the Franchise 500 Hall of Fame.

2024-2025 highlights: - $3.7 billion system-wide revenue in 2024 (fourth-best year in 40+ year history) - 427,000 associates employed across the system annually - 54 new and resale franchise agreements closed in 2025 - 38 new franchisees joined via 12 Discovery Day events - Entered 7 new territories in 2025

The system absorbed a significant leadership transition with the passing of both co-founders (William H. Stoller and Bob Funk Sr.) in 2025 while maintaining growth momentum.

## Franchisee Experience

Training consists of two weeks at Oklahoma City headquarters covering all aspects of office operations. The franchise provides ongoing support and resources for business building.

Franchisee satisfaction appears strong based on: - 2024 IFA Franchisees of the Year (Susan and Ronnie Morris, 8 offices in Tennessee) - ClearlyRated Best of Staffing Talent Award recognition - Over 5,000 individuals expressing franchise ownership interest in 2025 - Existing franchisees expanding with additional territory acquisitions

The system benefits from four decades of operational refinement and a deep support infrastructure.

## Risk Assessment

The FDD discloses lawsuits and bankruptcy information, indicating transparency about legal history. Notable litigation includes:

**Employment-Related Lawsuits:** - $10 million class action settlement for unpaid wages in California (overtime, meal periods, itemized wage statements) - $5.75 million FCRA settlement for background check notice violations (36,848 class members) - $42,500 EEOC settlement for national origin discrimination involving a franchisee

These cases primarily involve employment law compliance at the franchisee/operational level rather than franchisor misconduct. Staffing businesses face inherent employment law exposure that requires careful compliance protocols.

**Key risks:** - **Economic sensitivity:** Staffing demand correlates with economic cycles; recessions reduce temporary placement volume - **Labor market dynamics:** Tight labor markets make candidate recruitment challenging; loose markets reduce client demand - **Workers compensation:** Staffing agencies carry workers comp liability for placed employees - **Cash flow management:** Payroll float requires adequate working capital - **Leadership transition:** Both co-founders passed in 2025; succession execution bears monitoring

## Competitive Position

Express Employment Professionals dominates the staffing franchise category with scale advantages in brand recognition, technology infrastructure, and operational support.

The staffing industry is projected to reach $665 billion globally in 2025 (5% growth). Express competes against both large national staffing firms (Robert Half, Kelly Services) and independent local agencies. The franchise model provides local ownership agility with national brand support.

Competitive advantages: - Largest staffing franchise system by unit count - Proven playbook for market entry and ramp-up - Multi-decade track record through multiple economic cycles - Strong brand recognition among both employers and job seekers

## Validation Questions

1. What was your actual first-year revenue versus the $1.1 million system average? 2. How long until you reached positive cash flow, and what were your working capital requirements? 3. What percentage of your revenue comes from temporary versus permanent placements? 4. How has the labor market in your territory affected candidate supply and client demand? 5. What support did corporate provide during economic downturns or slow periods? 6. What is your current revenue and profit margin after X years of operation? 7. How do you manage workers compensation costs and claims?

## Data Gaps

- Detailed profit margin breakdown beyond gross margin split - Territory-specific performance variation by market type - Franchisee turnover rates and exit reasons - Workers compensation cost as percentage of revenue - Impact of leadership transition on strategic direction