About Spherion Franchise
Spherion is a staffing and workforce solutions franchise that has been part of the franchise landscape since 1956, making it one of the oldest staffing franchise brands in the industry.
The brand, backed by Randstad N.V., one of the world's largest human resources companies, provides temporary, temp to hire, and direct placement staffing services to businesses across a range of industries.
The franchise fee is $40,000.
Spherion Franchise Cost & Fees
Minimum Investment
$143K
Average Investment
$248K
Maximum Investment
$352K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | General Staffing: 25% of Temporary Gross Profits, 12% of Full-Time Placement Sales. Professionals: 30% of Temporary Gross Profits, 15-20% of Full-Time Placement Sales. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | General Staffing: 0.25% of Sales. Professionals: 0.25% to 0.75% of Sales. | National brand fund |
| Total Investment Range | $143,100 – $352,475 | Includes build-out, inventory, working capital |
The investment range of $143K–$352K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (General Staffing: 25% of Temporary Gross Profits, 12% of Full-Time Placement Sales. Professionals: 30% of Temporary Gross Profits, 15-20% of Full-Time Placement Sales.) and marketing fee (General Staffing: 0.25% of Sales. Professionals: 0.25% to 0.75% of Sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fees | $40,000 | $40,000 |
| Computer System Hardware | $0 | $7,300 |
| Real Property | $3,500 | $10,000 |
| Furniture and Fixtures | $15,500 | $40,000 |
| Leasehold Improvements | $10,000 | $15,000 |
| Signs | $2,000 | $8,000 |
| Equipment | $4,650 | $10,500 |
| Opening Advertising | $7,500 | $25,000 |
| Training Expenses | $3,750 | $9,375 |
| Start-up Supplies | $510 | $1,050 |
| Insurance | $2,100 | $7,850 |
| Utility Expenses | $160 | $1,100 |
| Professional Fees | $1,050 | $5,200 |
| Business Licensees | $160 | $1,100 |
| Hardware Installation | $720 | $1,100 |
| Additional Funds for 11 months | $51,500 | $82,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (existing franchisee purchasing another Spherion franchise) or 10% of total sales price (minimum $10,000, maximum 35% of current initial franchise fee) (non-existing franchisee purchasing an existing Spherion franchise). |
| Renewal Fee | Not explicitly stated as a separate fee, but renewal may involve signing a new agreement with different terms and conditions. |
| Technology Fee | Computer System Support Fee: General Staffing: $200 per site/month; Professionals: $300 per site/month. Management Information Services and Technology Enhancement Fee (MISTEF): General Staffing: 1.5% of total gross payroll and full-time placement sales; Professionals: 1.75% of total gross payroll and full-time placement sales. SHL Talent Central license fee: $484 per site annually (currently paid by franchisor, may be charged back). MapRecruit: Non-recruiter View Only License $15/month/license, Non-Recruiter License $110/month/license, Additional Franchisee Admin License $110/month/license (additional licenses beyond initial covered by franchisor). Electronic Onboarding Package: Varies (currently paid by franchisor, may be charged back). Time and Expense Transaction Fee: Varies (currently paid by franchisor, may be charged back). |
| Audit Fee | Not explicitly stated as a separate fee, but franchisee must reimburse for costs of audit if discrepancies are found. |
| Temporary Sales Fee | See Note 3 (Franchisor retains 25% of Temporary Gross Profits for General Staffing, 30% for Professionals) |
| Full-Time Placement Fee | See Note 5 (Franchisor retains 12% of Full-Time Placement Sales for General Staffing, 15-20% for Professionals) |
| Gross Profit Quota Fee | Will vary under circumstances (payable if Gross Profit Quota not attained) |
| Reimbursement for direct mailings | Our costs for production and postage |
| Accounts Receivable Funding Fee on accounts receivable over 60 days old | [Prime Rate + 1.5%] x 30/365 x AR over 60 days |
| Uncollectible customer billings | Will vary under circumstances |
| Area Expansion | General Staffing: Fee determined by market tier size. Professionals: Fee negotiated by parties. |
| Temporary Employee wages | Will vary under circumstances (for forged, fraudulent, erroneous or improper time slips) |
| Purchases from us or our affiliates | Will vary under circumstances |
| Release from non-competition covenants | 8 times 9.5% of Sales for 12 preceding Accounting Periods (General Staffing only, if terminating without cause after initial term and not abiding by non-compete) |
| Indemnification | Will vary under circumstances |
| Materials or courses for additional (post initial) training | Will vary depending on what is provided |
| Spherion Centralized Delivery Cooperative (SCDC) | Will vary depending on level of service assistance |
| National Recruiting Center (NRC) assistance fee | 25% to 75% of Gross Profit for Temporary Employees Recruited by NRC |
| Revenue sharing fee | Varies depending upon the circumstances |
| Territorial liquidated damages | Will vary under circumstances (Professionals franchisees only) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by course, e.g., 1 hour, 7 hours, 5 hours, 15 hours, 20 minutes, 3-8 minutes, 1 day, 36 hours, 40 hours. |
| On-the-Job Training | 36 hours (Dedicated operations support), 36 hours (Sales, Marketing and Business Planning Support), 40 hours (Selling the Spherion Way), 24 hours (Delivery Foundational Training), 24 hours (Operational Excellence Trainings) |
| Training Location | Online, Location selected by Spherion Leadership, Atlanta, or a designated training location. |
| Additional Training | Additional training is available throughout the franchise term, offered online, by phone, webinar, or in-person. National/regional meetings are periodically conducted. Franchisees are responsible for travel, lodging, food, and wages for employees attending training. Franchisor may require payment for training materials or fees for post-initial training courses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (for specific services) |
| Exclusive Territory | No |
| Territory Size | Political jurisdiction (city, county, parish, township) or multiple contiguous political jurisdictions or list of zip codes. |
| Description | For General Staffing franchisees, Spherion will not establish another Spherion General Staffing office in your Area. For Professionals franchisees, Spherion will not establish another Spherion Professionals office offering the *same subset* of services in your Area, but may offer different subsets of Professional Services. Spherion or its affiliates may operate businesses outside your Area under the same marks, or provide different services within your Area under the same or different trademarks. Spherion also has the right to negotiate and enter into contracts with 'National Account Customers' within or outside your Area, and if you fail to provide satisfactory services, Spherion may provide them directly or through another party. No exclusive territory is granted, and you may face competition from other franchisees, company-owned outlets, or competitive brands. Territorial rights do not depend on sales volume or market penetration, except for Gross Profit Quotas. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | Not explicitly stated as a separate fee, but renewal may involve signing a new agreement with different terms and conditions. |
| Renewal Conditions | Franchisee's right to operate must be in full force and effect, no default in the final year of the term, and substantial compliance with agreement terms. May require structural changes, equipment installation, remodeling, redecoration, and modifications to comply with current image. Franchisee must provide written acceptance of renewal within 60 days prior to expiration. Renewal is under the then-current franchise agreement form, which may include materially different terms, and requires a general release of claims. |
| Transfer Fee | $10,000 (existing franchisee purchasing another Spherion franchise) or 10% of total sales price (minimum $10,000, maximum 35% of current initial franchise fee) (non-existing franchisee purchasing an existing Spherion franchise). |
| Transfer Conditions | Company's approval is required and not unreasonably withheld. Conditions include: proposed purchaser pays outstanding obligations, guarantees payment, meets new franchisee requirements (capital, experience, character, financial/managerial capability, no conflicting business interests), completes application documents and provides tax returns, participates in training, agrees to current franchise agreement terms for remaining term (or initial 10-year or renewal 5-year term), resides in Area, and personally meets with franchisor representatives. All sale/assignment documents require prior approval. Transaction must provide an economically viable opportunity. |
| Termination for Cause | Immediate termination for insolvency, bankruptcy, felony conviction, criminal misconduct, embezzlement, impaired reputation, business closure for 5+ days, willful misrepresentation, competing with franchisor, or disclosure of confidential information. Termination with 10 days notice for payment default (if not cured). Termination with 30 days notice for other breaches (if not cured). Third payment default or third similar breach within 12 months leads to immediate termination. Death or incapacity of Managing Owner (if no successor within 90 days, or if no manager/client service rep employed within 90 days and no sale/compliance within 1 year). Impairment of business due to union activity, legislative enactment, civil disorder for 60+ days. |
| Non-Compete Period | During term: indefinite. Post-termination: 12 months (General Staffing) or 24 months (Professionals). |
| Non-Compete Details | During the term of the agreement and any renewals, franchisee (and related parties) may not directly or indirectly own, engage in, consult for, recruit for, or sell for any Competitive Business within the U.S., or engage in similar activities, or solicit customers/employees of the company. Post-termination, for 12 months (General Staffing) or 24 months (Professionals), franchisee (and related parties) may not own, engage in, consult for, recruit for, or sell for a substantially similar business within the franchisee's Area and any contiguous county/parish (General Staffing) or within 40 miles of a Spherion franchise/office (Professionals), or solicit customers/employees, or use/disclose proprietary information. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The 'Managing Owner' (or 'Operating Partner' if applicable) must personally attend and successfully complete initial and ongoing training. They must devote full time and best efforts to the management and operation of the Franchised Business and may not engage in any other business without franchisor consent. If less than full time is permitted, the Managing Owner must still be actively involved and the franchisee must hire a full-time day-to-day manager (sales capacity) and a full-time business development manager/staffing consultant/recruiter, all subject to franchisor approval and training. On-premises supervision is required at all times. |
| Required Suppliers | Franchisee must use franchisor's proprietary software and purchase/lease computer hardware and license third-party software from franchisor and other specified suppliers. Business forms, advertising, signs, brochures, and promotional material must be purchased from franchisor or approved suppliers according to specifications. |
| Supply Restrictions | Franchisor specifies suppliers for computer system components (hardware and software) to ensure uniformity and reliability. All business forms, advertising, signs, brochures, and promotional materials must conform to franchisor's specifications and require prior approval if not purchased from the franchisor. Certain insurance coverage is required, but not from a particular vendor. |
| Franchisor Revenue from Suppliers | Spherion does not derive revenue from required purchases and leases of products and services to its franchisees, except for a rebate from American Express (approx. 1% of total card spend) and $186,000 from Monster for licensing monster.com and related services in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Spherion offers start-up financing (Start-up Loan) for new markets up to $200,000, and purchase financing (Purchase Loan) for existing offices. Loans are repaid in installments over 5 years with interest at Prime Rate + 5% (8.25% as of April 23, 2021). Start-up loans have 6 months interest-only payments, then 6 months interest-only, then 48 months principal and interest. Purchase loans have 60 monthly principal and interest payments. Workers' compensation year-end loans (up to 12 months) and Computer System Purchase Loans are also offered under similar terms. All loans require a promissory note, security agreement, and personal guaranty from shareholders. |
Spherion Franchise Earnings — Item 19
Average Revenue
$7.4M
Median Revenue
$4.5M
Revenue Range
$582K – $47.3M
Sample Size
56 units
Past financial performance does not guarantee future results. Individual results will vary.
Spherion Litigation & Risk Flags
Clean Litigation RecordSpherion has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Spherion System Growth
Total Units
208
Franchised
208
Company-Owned
0
Spherion currently operates 208 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 20 | 11 | 195 |
| 2020 | 13 | 9 | 200 |
| 2021 | 32 | 24 | 208 |
Transfers: 7 | Closures: 35
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$443K
Net Income
$7K
Total Assets
$70K
Audited by Bennett Thrasher LLP for year ending December 31.
Spherion Franchise — FAQ
The total investment to open a Spherion franchise ranges from $143,100 to $352,475, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Spherion charges a royalty fee of General Staffing: 25% of Temporary Gross Profits, 12% of Full-Time Placement Sales. Professionals: 30% of Temporary Gross Profits, 15-20% of Full-Time Placement Sales. of gross sales, plus a General Staffing: 0.25% of Sales. Professionals: 0.25% to 0.75% of Sales. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Spherion Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Spherion to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Spherion franchise owners report average revenue of $7.4M and median revenue of $4.5M. This is based on a sample of 56 units. Past performance does not guarantee future results.
Spherion has been franchising since 1956. The FDD shows an investment range of $143,100-$352,475, a General Staffing: 25% of Temporary Gross Profits, 12% of Full-Time Placement Sales. Professionals: 30% of Temporary Gross Profits, 15-20% of Full-Time Placement Sales. royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $143,100 to $352,475 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Business Services Franchises
Interested in Spherion?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Spherion and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Spherion or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com