How Much Does a Staffing Franchise Cost?

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Get an overview of a staffing franchise cost, including upfront and ongoing fees and expenses to expect.

What is the Initial Investment?

The initial investment for a staffing franchise varies based on the brand, location, and the intended operation scale. Typically, the initial investment includes franchise fee, staff salary, leasehold improvements, office equipment and furnishings, licenses, and insurance.

A franchise typically offers a range for their franchise investment costs. For example, AtWork, a staffing franchise that pays for itself through the support it provides, has a total investment range of $153,500 to $210,500. Line items that can have a range of costs depending on where the business is located are lease expenses, utilities, insurance, and the expense of attending training.

Franchise Fee for Staffing Franchises

One of the primary components of the initial investment is the franchise fee. The U.S. Small Business Administration(SBA) explains the franchise fee as the price of entry to the franchise. This fee grants the franchisee the right to use the franchisor’s brand name, business model, and support services. Franchise fees typically range from $25,000 to $50,000 on average, according to Franchise Business Review. But some staffing franchise fees are upwards of $100,000.

Other Initial Costs and Fees

Beyond the franchise fee, there are other staffing franchise costs to consider:

  • Office Space Improvements: Depending on the specifics of the office location, a new franchisee might need to modify the space to fit the requirements of the staffing franchise model.
  • Equipment and Technology: Computers, software, office furniture, and other essential equipment are necessary to operate efficiently. Additionally, while staffing agencies do not deal with physical products, there might be initial inventory expenses for office supplies and promotional materials. Franchisors typically have bulk-buying powers, allowing franchisees to save on equipment and other office materials.
  • Licenses and Insurance: Depending on the state and local regulations, franchisees might need specific licenses to run a staffing agency. Additionally, insurance is necessary for business owners to protect their location from potential liabilities.

Ongoing Costs to Be Aware Of

After the initial investment, there are ongoing fees associated with running a staffing franchise:

  • Royalty Fees: Many franchisors charge a royalty fee, a percentage of the gross revenue, for ongoing support and training. AtWork’s royalty fee is 7%, which is the lowest among its major competitors.
  • Marketing and Advertising: Some franchisors have a national advertising fund, but local marketing expenses are also likely. For example, AtWork has a 0.5% marketing fund fee.
  • Operational Costs: These encompass salaries, rent, utilities, and other daily business expenses.
  • Technology and Software Updates: Regular updates and new software solutions are essential in the technology-reliant staffing industry.
  • Training and Professional Development: Continuous learning and training are vital to maintaining a competitive edge.
  • Renewal Fees: renewal fee might apply if one decides to renew the franchise agreement at its conclusion. Not all franchisors have a renewal fee; if they do, it is usually less than the original franchise fee.

Understanding staffing agency franchise costs is crucial for budgeting and ensuring profitability. It is also essential to have a financial cushion during the initial months of operation. Franchise experts recommend that new franchise owners have three to six months of operating costs saved up before opening.

AtWork: The Franchise That Pays for Itself

When evaluating the staffing agency franchise cost, it is not merely about the monetary figures, but the value received in return. AtWork offers a harmonious blend of local ownership with national support. With its consistent recognition in ClearlyRated’s Best of Staffing, AtWork provides franchisees with a competitive advantage.

Furthermore, AtWork’s franchising model is crafted to enhance profitability, ensuring a larger portion of earnings remains with the franchise owners. With its comprehensive in-house accounting support, including payroll funding, AtWork emerges as a frontrunner in the staffing franchise domain.

With AtWork, the investment goes beyond business; it is an investment in a proven success model, extensive support, and a community of entrepreneurial peers.

Get started on the journey of owning a prosperous staffing franchise by connecting with AtWork.

 

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