How much does an Express Employment Professionals franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $180,000–$294,000. The largest cost component is the payroll working capital reserve — staffing businesses pay workers weekly while collecting from clients on 30–60 day terms. $80,000–$150,000 in working capital reserves is the standard range.
How does Express Employment's 60% gross margin royalty work?
Express charges approximately 60% of the gross margin spread — not 60% of revenue. Gross margin is the hourly billing rate minus the hourly worker pay rate. If a client pays $25/hour and the worker earns $18/hour, the gross margin is $7/hour. Express takes roughly 60% of that ($4.20/hour). The franchisee retains 40% ($2.80/hour) to cover office overhead, staff, insurance, and profit. On $1M in gross payroll, you might generate $140K in gross margin and retain $56K after Express's royalty.
What is the payroll float challenge in staffing franchises?
Staffing businesses pay temporary workers weekly — 52 times per year. But employer clients typically pay on 30–45 day invoice terms. This creates a rolling cash deficit: you are always owed more money than you have paid out. As placement volume grows, the cash gap grows too. A $5M/year revenue staffing office can easily have $300,000–$500,000 in outstanding receivables at any given time. Working capital lines of credit and AR financing are standard tools for managing this gap.
Can I use SBA financing for an Express Employment franchise?
Yes. Express is on the SBA Franchise Directory. SBA 7(a) is the standard path. Working capital lines of credit are especially important for staffing franchises and should be structured as a separate facility from the term loan.
What DSCR do lenders require for an Express Employment Professionals franchise SBA loan?
SBA SOP 50 10 8 sets a minimum global DSCR of 1.15×. SBA participating lenders for staffing franchise startups typically require 1.25×+. For Express Employment, the DSCR is calculated on net income after the 60%-of-gross-margin royalty, office overhead (staff, rent, insurance), and debt service. Year-one projections are built from FDD Item 19 comparable-office gross margin data — newer offices with less than 24 months of operating history receive heavier discounts on projected income. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
How much equity injection is required for an Express Employment franchise SBA loan?
SBA requires a minimum 10% equity injection of total project cost. At $180K–$294K, that is $18K–$59K from the borrower's own verifiable funds. Because working capital is the largest cost component and the payroll float creates ongoing cash demands, lenders prefer applicants with equity beyond the minimum — a stronger starting working capital position reduces the risk of cash shortfalls during the ramp period. Borrowed equity is generally not acceptable. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.
