Spherion Franchise Cost, Owner Salary & Profit 2024

Finding out Spherion Franchise cost, profits, and other investment details could be very useful for you if you are looking to get into the staffing and recruitment industry.

Since the US temporary staffing market is estimated to be $185.6 billion in 2024, now might be a good time to enter into this profitable market.

So make sure to read this guide till the end as we reveal to you if investing in a Spherion franchise is a prudent decision or not.

Spherion Franchise Cost

About Spherion History

Spherion is a national staffing and recruiting company that was founded in 1946. The company has a strong franchise network that helps clients with temporary staffing, direct hiring, temp-to-hire, outsourcing, etc.

Spherion is one of the best staffing franchises in the U.S. and has even been ranked #63 in the Entrepreneur 2024 Franchise 500 list.

As a Spherion franchise owner, you will be required to support light industrial and administrative positions, and in some markets, you will need to perform recruitment and staffing as well.

Spherion franchise model, or what they call the commercial model, is available in many mid-sized cities, towns, and rural areas.

Now that you have a brief overview of the company keep on reading to find out details on the investment and earnings of the Spherion franchise.


Spherion Franchise Model

Cost Or FeesAmount
Initial Investment       $214,325 to $342,575
FranchiseYes
Franchising Since1956
Franchise-Fee$35,000
Royalty-FeeN/A
Liquidity$214,325
Estimated OutletsN/A

How Much Does It Cost To Open A Spherion Franchise?

Cost To Open A Spherion Franchise

With a focus on recruiting and staffing for roles in manufacturing, logistics, office, and administrative work, the Spherion franchise gives you access to many clients looking for volume hiring.

So, as a Spherion commercial/general staffing franchise, you require an investment from $214,325 to $342,575. This includes $40,000 that is needed to pay to Spherion or its affiliates.


Spherion Franchise Requirements

To own a Spherion franchise, you do not compulsorily require industry experience. However, you must have a minimum liquid capital of $214,325 for General Staffing.

Additionally, these funds should be available via investment statements or verified banking prior to attending their discovery day event.


How Much Does Spherion Franchise Owner Make?

As per the information on the company’s website, the average Spherion franchisee generated $7.4 million in annual revenue and $1.7 million in gross profit in 2022.

This information is based on the performance of 60 franchisees that were operating for at least one full year in 2022.

The above-mentioned figure shows a profit margin of 23% on average. Here’s a table showing the calculation for this figure:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%7400000.00
Rent9.63%(712250.00)
Insurance4.81%(356125.00)
Salaries19.25%(1424500.00)
Franchise Royalty Fees4.81%(356125.00)
Utilities1.93%(142450.00)
Cost of Goods Sold (COGS)24.06%(1780625.00)
Labor (Variable)12.51%(925925.00)
Total (Expenses)77.00%(5698000.00)
Net Profit23.00%1702000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


How Much Does A Spherion Franchise Owner Make In Salary?

Spherion Franchise Owner salary

The salary of a Spherion franchise owner could vary from one another depending on the location, number of clients, etc.

However, on average, a Spherion franchise owner makes $1.7 million in gross profits annually.

((https://www.spherion.com/franchising/))


Payback Period Of Spherion Franchise

Using the average initial investment of $278,450 and the average profits of $1,702,000, we can find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $278,450/ $1,702,000= 0.16

Based on these figures, it will take less than two months for you to pay back the initial investment for Spherion franchise. However, this time period could be longer or shorter depending on your actual revenue, sales, and profit figures.


Spherion Franchise Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019186195+9
2020195199+4
2021199208+9

For the Franchise-owned outlets:

  • In 2019, the growth rate was (9)/186×100≈4.8%
  • In 2020, the growth rate was (4)/195×100≈2.05%
  • In 2021, the growth rate was (9)/199×100≈4.5%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019000
202001+1
202110-1*

*In December, 2020, Spherion reacquired one of its Mississippi franchise outlet from its owner-franchisee and then transferred it on February 24, 2021 to an existing owner-franchisee.

For the Company-owned outlets:

  • In 2019, the failure rate was (0)/0×100≈ N/A
  • In 2020, the growth rate was (1)/0×100≈0%
  • In 2021, the failure rate was (1)/1×100≈100%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019186195+9
2020195200+5
2021200208+8

For total outlets:

  • In 2019, the growth rate was (9)/186×100≈4.8%
  • In 2020, the growth rate was (5)/195×100≈2.5%
  • In 2021, the growth rate was (8)/200×100≈4%

So, according to the data mentioned above, the franchised outlets for Spherion franchise showed a growth rate of 4.8% and 4.5% between the years 2019-2021.

On the other hand, only one new company-owned Spherion outlet opened in the year 2020, but it was transferred to an existing owner-franchisee, leading to no growth rate for the years 2019-2021.

Overall, when we combine the data of franchise and company-owned outlets, we can see that Spherion showed continued growth of 4.8% and 4% for the years 2019-2021.


Spherion Franchise Training And Support

Spherion offers a 232-hour onboarding curriculum to new franchisees to set them up for success. This curriculum consists of call-based, web-based, and in-person training.

This is then followed up with two weeks of on-site training by their operational managers and filed-based V-P.

Once the candidates open their franchise, they are given monthly sessions, calls, and field-based classes annually. Spherion also has an online university where franchisees can seek continuous learning opportunities.

In addition, Spherion also offers technical, marketing, and professional support. The franchisor also funds the most expensive component of this business- payroll.

The franchisor takes care of weekly payroll, invoicing, collection process, and all kinds of taxes. This reduces the ongoing cash requirement of franchisees.


Spherion Franchise Terms Of Agreement And Renewal

Spherion Franchise Terms

The initial term of the agreement for Spherion franchise is 10 years with successive five-year renewal periods.

This means that you can legally operate as a Spherion franchise for a term of 10 years, after which you will have to renew the franchise again to run it for the next five years and so on.


Spherion Obligations And Restrictions

Every franchisee needs to adhere to some obligations and restrictions as set by the franchisor in their FDD. This could include the services you can offer, marketing strategy, working hours, etc.

Since every franchise’s FDD is different, you will have to get in touch with Spherion to learn what legal restrictions and obligations you need to adhere to.


Spherion Franchise Financial Assistance

Spherion offers in-house financing help to qualified entrepreneurs. This includes fast financing options such as portfolio loans and low-doc SBA loans, among others.

Also, Spherion offers 25% off on their initial franchise fees to Military Veterans and members of SBA-recognized ethnic minority groups.

Additionally, they also offer generous discounts for employees of Randstad-affiliated companies.


Spherion Franchise Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Express Employment Professionals$40,0008%$140,000-$220,000
Labor Finders$20,0003.5%$120,000-$207,000
Spherion$35,000N/A$214,325-$342,575

Conclusion

By looking at the low Spherion franchise cost of investment, great profits, payback period, and other franchise terms, we can clearly see that this could be a great franchise to invest in in this sector.

However, make sure you get in touch with the company and review their Financial Disclosure Document with a legal attorney to make sure there are no hiccups or surprises in the franchising process later.


FAQ’s

How Much Is The Franchise Fee For Spherion?

The franchise fee for Spherion is $35,000.

Can I Fail With A Spherion Franchise?

As with any other business, there is no guarantee of success for the Spherion franchise. If you review the business properly and do the hard work, then you should not face any problems or failures.

Where Is The Headquarters Of Spherion?

Spherion is a North American agency that is headquartered in Atlanta, Georgia.

Leave a Comment