Express Employment Professionals Franchise Cost & Fees

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Description

Date of Incorporation: 1983Franchising Since: 1985Headquarters: Oklahoma City, Oklahoma Year Business Began: 1983 Franchising Since: 1985 Headquarters: Oklahoma City, Oklahoma Estimated Number of Units: 795Franchise Description: Express Services, Inc. is the franchisor. Franchisees provide a variety of services, including flexible staffing, temporary/contract staffing, career placement, and professional search business. The franchise offered may provide two kinds of services: Temporary/Contract Staffing, known as “Flexible Staffing,” which is required in the Franchise Agreement, and Career Placement – Professional Search known as “Career Placement.” In addition, Recruiting Stations and Branch Offices within franchisee territories may be set up with the appropriate addendums. Three programs are offered by the franchisor to assist franchisees.Bridge to Ownership (BTO) Program: Offers qualified staffing industry employees an opportunity to become franchiseesIndustry Pro Program: Offers qualified staffing industry employees an opportunity to become franchisees.Conversion: Offers qualified independent staffing firms the opportunity to become franchisees.Training Overview: The franchisor will provide, and franchisees must attend, an initial training program of up to two weeks in Oklahoma City, OK, and one week at a designated site for field training, during which the franchisor will train franchisees to operate the Express Employment Professionals business. The franchisor will provide refresher training programs for franchisees and their manager or other employees to attend at Regional Training Sites, Regional Meetings, and the annual International Leadership Conference, at locations to be designated by the franchisor, and at franchisees’ expense. Franchisees must attend the annual International Leadership Conference each year and attend a minimum of one additional regional Continuing Education Training program at locations designated by the franchisor. Franchisees shall not be required to attend additional training for operation of the Branch Office, but franchisees will be responsible to train their employees for the operation of the Branch Office. Territory Granted: The territory will be specified in the Franchise Agreement and will have a minimum of 30,000 jobs based on results from GbBIS, a division of Intelligent Direct Inc. Franchisees must not target advertise to potential clients located outside the boundary line of the territory without the franchisor’s written approval. As long as franchisees perform their duties under the Franchise Agreement, are not in default under the Franchise Agreement, and have maintained their offices as required, the franchisor will not establish, except as otherwise described in the FDD, other third-party franchises or company-owned outlets selling or leasing the same products or services under the same or different trade name(s) or trademark(s) in the Territory during the term of the Franchise Agreement. Obligations and Restrictions: Franchisees (or the principal stockholder if a corporation) must actively be involved in the day-to-day operation of the business. Currently, the Manual requires a minimum of three internal staff members: a Sales Representative, a Staffing Consultant, and a Front Office Coordinator. Franchisees must operate the Express Employment Professionals Business in accordance with the methods, standards, and specifications as the franchisor may from time to time prescribe in the manual or otherwise in writing.Term of Agreement and Renewal: The initial term is five years. The renewal term will be equal to the term of the then-current form of the Franchise Agreement but in no event will be less than five years. At the end of any renewal term, franchisees may renew for another renewal term, if requirements are met.Financial Assistance: The franchisor offers financing under the Bridge to Ownership (BTO) Program up to $250,000, if the franchisee qualifies for and participates in the BTO program. Also, franchisees are required to purchase all items of the Computer System and Computer Upgrades through the franchisor, for cash or on financing if the franchisor is at that time financing these items. If franchisees decide to obtain financing from the franchisor for such purchase, and the franchisor decides, in its sole discretion, to provide financing to franchisees, they will be required to sign a Promissory Note. Other than the financing as described, the franchisor does not offer direct or indirect financing in connection with franchisees’ purchase or operation of the Express Employment Professionals business, or for any other items. The franchisor does not guarantee a franchisee’s notes, lease, or other obligations. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $35,000 $35,000 Lease and Deposit $2,100 $4,600 Leasehold Improvements $4,000 $5,000 Utility Deposits $200 $600 Training Costs $3,300 $19,500 Office Supplies $300 $600 Office Equipment $6,200 $7,500 Computer System Hardware $12,000 $16,500 Furniture and Fixture $8,000 $10,100 Signs $3,000 $4,000 Insurance $400 $600 Professional Service Fees $1,000 $2,000 Additional Funds $59,500 $99,950 ESTIMATED TOTAL* $135,000 $206,000 *The estimated initial range covers from a Single Traditional Model up to a Single Professional Staffing Model. See FDD for more details. Estimated Initial Investment for a Branch Office Name of Fee Low High Initial Franchise Fee $3,000 $3,000 Lease and Deposit $500 $2,000 Leasehold Improvements $500 $10,000 Utility Deposits $500 $1,000 Office Supplies $250 $500 Office Equipment $1,500 $3,000 Computer System Hardware $3,000 $10,500 Furniture and Fixture $1,000 $3,600 Signs $2,000 $3,000 Insurance $250 $1,000 Professional Service Fees $250 $750 Additional Funds $20,000 $30,000 ESTIMATED TOTAL $32,750 $67,250 Other Fees Type of Fee Amount The following entries will apply to the Flexible Staffing portion of the Express Employment Professionals Business Franchisor’s Portion of the Gross Margin 40% of the Gross Margin. Minimum Monthly Gross Margin Will vary under circumstances. Liquidated Damages Will vary under circumstances. Express Advertising/Marketing Fund 0.6% of the Gross Margin. Reserve Account 0.6% of the franchisee’s portion of the Gross Margin. Charge-back of Past Due Amounts Will vary under circumstances. Finance Charges The greater of 1.5% per month or an interest rate of 2% over the National Prime Lending Rate as reported in the Wall Street Journal, but not to exceed the maximum permitted by applicable law. Charge-back of Improper Payments Will vary under circumstances. Cost of Misclassification of Workers’ Compensation Will vary under circumstances. The Claim/Indemnity Plan Contribution 0.05% of the gross associates payroll will be credited to the Claim/Indemnity Plan. Other Adjustments Will vary under circumstances. Territorial Liquidated Damages Will vary under circumstances. Software, Testing, or Training Programs 40% percent of compensation received. The following entries will apply to the Career Placement portion of the Express Employment Professionals Business Express Advertising/Marketing Fund 2% of Gross Receipts. Franchisor’s Portion of the Gross Receipts 8% of Gross Receipts of the Career Placement portion of the Express Employment Professionals Business. Interest 1.5% per month, but in no event more than the maximum permitted by applicable law. Audit Will vary under circumstances. Instead of the fees described above, opt-out franchisees will pay the following fees (for both the Flexible Staff and Career Placement portions) Royalty 8% of the Total Billings. Marketing Fund Contribution 2% of the Total Billings. Interest 1.5% per month, but in no event more than the maximum permitted by applicable law. Audit Will vary under circumstances. The following fees are applicable to all franchisees Software, Testing, or Training Programs 40% percent of compensation received. Transfer Fee 10% of the total sales price received not less than $5,000 or more than 50% of the then current initial franchise fee. Branch Office Fee $3,000 Recruiting Station Fee $300 Indemnification Will vary under circumstances. Mediation Costs Will vary under circumstances. Services and Support of the Computer System and Required Software Subscriptions Communication Fee: $385/monthESP (Prove It!) Testing Package Maintenance Fee: $41.67/month;Microsoft Software Server: $64.32/Month; User: $26.52/MonthTest Workstation: $8.28/Month The above information has been taken from the FDD of Express Employment Professionals. Year of FDD: 2018Franchise Direct’s Disclaimer

Estimated Initial Investment for a Branch Office
Name of Fee Low High
Initial Franchise Fee $3,000 $3,000
Lease and Deposit $500 $2,000
Leasehold Improvements $500 $10,000
Utility Deposits $500 $1,000
Office Supplies $250 $500
Office Equipment $1,500 $3,000
Computer System Hardware $3,000 $10,500
Furniture and Fixture $1,000 $3,600
Signs $2,000 $3,000
Insurance $250 $1,000
Professional Service Fees $250 $750
Additional Funds $20,000 $30,000
ESTIMATED TOTAL $32,750 $67,250