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FDD Talk: The Express Employment Professionals Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on February 12, 2017

in FDD Talk 2017: Miscellaneous Franchises, Franchise Earnings, Staffing Franchise



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Express Employment Professionals Photo by technomadia

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Express Employment Professionals franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for an Express Employment Professionals franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Express Employment Professionals’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015, 2014, and 2013 average combined sales (flexible staffing sales and career placement sales) and average gross margin for domestic Express Employment Professionals units (territories) open more than 24 months
  • 2015, 2014, and 2013 average franchisee share of gross margin and gross receipts (AAGM) for domestic Express Employment Professionals units (territories) open more than 24 months, excluding founder owned units
  • number and percent of domestic and international Express Employment Professionals units that achieved at least $875,000 in gross margin and gross receipts in 2015 and 2014, and at least $850,000 in 2013
  • average sales, gross margin, gross receipts, franchisee’s portion of gross margin and gross receipts, and hours for domestic Express Employment Professionals units opened between January 1, 2013 and December 27, 2015 during their first 12 months of operation, second 12 months of operation, and first 24 months of operation
  • 2015 average annual sales per owner, gross margin per owner, and commission per owner (including bonus commissions) for 68 domestic Express Employment Professionals multi-unit owners (with an average of 2.3 offices each)

Section I – Background Information

Helping More Than 6 Million People Find Work

Express Employment Professionals was founded by William Stoller and Robert Funk in 1983. Franchising began a few years later in 1985. Stoller, Vice Chairman and President, and Funk, CEO and Chairman of the Board, still remain with the company today.



Since its founding, Express Employment Professionals has found work for more than 6 million people. The company’s long term goal is to put a million people to work each year. In 2015, Express Employment Professionals helped a record 500,000 people find employment.

Today, Express Employment Professionals has over 760 locations throughout the United States, Canada, and South Africa.

CEO Named Business Leader of the Year

In December of 2016, CEO Bob Funk was named the 2017 Business Leader of the Year by the Association for Career and Technical Education (ACTE). The award celebrates the contributions and achievements of an executive from the business community who has demonstrated a commitment to improving career and technical education (CTE).

In 2014, Funk and Express began sponsoring the ACTE Excellence Awards as a gesture of support for the work of CTE educators. Funk and Express have donated $5 million in scholarships and grants to numerous youth organizations and agricultural establishments.

Seeing a need for more skilled workers, Funk and Express developed the free “Job Genius” educational video series to help job seekers and students understand how to find gainful employment. Additionally, the company has teamed up with CEV Multimedia to develop online Career Preparedness and Business Office Technology Certifications.

Express Employment Professionals Gives Back to Local Communities

Express Employment Professionals is a company committed to making charitable contributions whenever it can. This past Christmas, employees from the company donated gifts for 250 children as part of the Salvation Army’s annual Angel Tree program. The employees presented the gifts in honor of Express Employment Professionals’ founders Bob Funk and Bill Stoller. The Express philanthropic committee matched the donations the employees made to the Salvation Army which resulted in a monetary contribution of $12,500.



Also during the holiday season, Express employees donated work-appropriate attire to the Center for Employment Opportunities (CEO) of Oklahoma City, which is where Express Employment Professionals is headquartered. CEO aims to help people with recent criminal convictions find work and lead successful lives. Express’ employees donated 950 items including suits, jackets, shirts and slacks, toiletry items and accessories. A $600 donation was also made to the program.

One of Express Employment Professionals’ biggest causes is providing educational materials to young people. During 2016, the company made a $10,000 donation to the Boys and Girls Club of Oklahoma City and also donated 21 computers. Through the donation, the kids now have have access to Express Employment Professionals’ Job Genius computer program.

Consistently High Rankings on Entrepreneur’s Franchise 500

Through the years, Express Employment Professionals has done well on Entrepreneur’s annual Franchise 500 list. For 2017, the franchise ranked at spot No. 31, which is the highest spot the company has earned on the list. This year’s rank is up from the company’s 2016 spot at No. 70. With the exception of 2011 and 2012, the franchise has always ranked in the top 100 on Entrepreneur’s list. 2011’s spot at No. 115 was its lowest rank.

Section II – Estimated Costs

  • Please click here for detailed estimates of Express Employment Professionals franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



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