Nextaff is a well-known name for finding a good staffing franchise, and this guide on Nextaff franchise cost is just what you need to find out franchise details on this business.
What are the initial investment costs? What is the revenue and profit potential? Training and support? Keep on reading to find out answers to all these & many questions.
Table of Contents
About Nextaff
Nextaff is a staffing franchise founded by Cary Daniel and James Windmiller in 2004.
The founders ran a staffing agency in 1998 and applied the lessons they learned to open a staffing franchise concept.
After perfecting their franchise model, the founders developed the X-Factor method, which used employee characteristics, strengths, skills, and weaknesses to match it with the ideal candidate for a job. And this is what gives their franchise owners an edge.
Nextaff is looking for qualified franchise candidates across the U.S. to expand their business.
Nextaff Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $121,838 – $156,938 |
| Franchise | YES |
| Franchising Since | 2004 |
| Franchise-Fee | $49,000 |
| Royalty-Fee | 8% |
| Liquidity | $175,000 |
| Estimated Outlets | 36 |
How Much Does It Cost To Open A Nextaff Franchise?
The initial investment cost of opening a Nextaff franchise is $121,838 – $156,938.
Additionally, Nextaff franchise owners are also required to pay $49,000 in franchise fees.
Compared to many other staffing agencies, Nextaff’s initial investment is affordable.
Nextaff Franchise Requirements
The financial eligibility requirement for this franchise is low. To be eligible, the franchise candidates must have a minimum net worth of $250,000 and a minimum liquid capital of $175,000.
Additionally, the candidate must have a business-to-business (B2B) sales background.
And if you want to run one of their specialized Technology and Healthcare divisions, you must also have a solid background in that particular industry.
Nextaff Overall Profit & Revenue
Nextaff has yet to make its company financials public, so we cannot point out how much revenue and profit the company has made in the past years.
However, looking at the performance of Nextaff franchises, we assume the numbers might be pretty good.
How Much Does Nextaff Franchise Owner Make?
According to the information available on the company’s website, the top-earning Nextaff franchisees made $6,418,493 in average gross revenue in 2022.
And with an average gross profit margin of 23.33%, they made a gross profit of $1,555,147.
Compared to the initial investment, the ROI of this franchise is impressive. Once you move forward with Nextaff’s franchise education process, you will be given access to their franchise FDD. This will allow you to access the complete finances of this franchise.
Payback Period Of Nextaff Franchise
Using the average initial investment of $139,388 and yearly gross profit of $1,555,147, we can find out how long it will take for you to pay back the initial investment amount:
- Payback Period = Investment / Yearly Profit = $139,388/ $1,555,147= 0.08 months
- Based on these figures, it will take you less than three months to repay your initial investment amount.
- Nextaff Failure Rate
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2016 | 8 | 7 | -1 |
| 2017 | 7 | 10 | +3 |
| 2018 | 10 | 14 | +4 |
For the Franchised outlets:
- In 2017, the failure rate was (1)/8×100≈12.5%
- In 2018, the growth rate was (3)/7×100≈42.85%
- In 2019, the growth rate was (4)/10×100≈40%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2016 | 0 | 0 | 0 |
| 2017 | 29 | 29 | 0 |
| 2018 | 29 | 52 | +23 |
For the Company-Owned outlets:
- In 2016, the failure rate was (0)/0×100≈N/A
- In 2017, the growth rate was (0)/29×100≈0%
- In 2018, the growth rate was (23)/29×100≈79.31%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2016 | 8 | 7 | -1 |
| 2017 | 36 | 39 | +3 |
| 2018 | 39 | 66 | +27 |
For the Total outlets:
- In 2016, the failure rate was (1)/8×100≈-12.5%
- In 2017, the growth rate was (3)/36×100≈8.3%
- In 2018, the growth rate was (27)/39×100≈69.23%
Nextaff Training And Support
You do not have to worry about lacking industry experience and not getting training or support from the franchisor.
Once offered a franchise, Nextaff will give you a combination of classroom training.
Once your franchise location opens, the training will be given both online and at NEXTAFF headquarters, along with one more week of on-site training.
Apart from this, franchise owners will get full access to back-office support. This includes administration, marketing, payroll service for field employees, operation assistance, and more.
You can find more details about this in the company’s evaluation process.
Nextaff Terms Of Agreement And Renewal
The initial term of agreement of the Nextaff franchise is five years. This agreement gives you the right to hold the brand name and work as a Nextaff franchise for 5 years unless you breach the contract.
After the first five years, you can renew the franchise term if the franchisor is happy with your performance and if you comply correctly.
You might be required to pay a successor franchise fee to renew your franchise agreement.
Nextaff Obligations And Restrictions
Nextaff franchisee is obligated to attend the necessary training offered by the franchisor. They are prohibited from selling any product or service that Nextaff does not approve.
In addition, the franchisee has to offer all the services mentioned in the company’s franchise agreement.
However, there is a good thing for Nextaff franchisees. Those who want to run this business semi-absentee can do so after approximately 2-3 years working as an Owner/Operator, depending on the company’s volume of Financial Assistance.
Although the initial investment for the Nextaff franchise is low, those who lack the necessary funds might want to find out if Nextaff offers Financial Assistance.
Luckily, Nextaff has partnered with Benetrends, which offers franchise funding to qualifying candidates.
Benetrends offers cost-effective, quick, and tailored funding solutions to help entrepreneurs start their dream businesses.
Nextaff Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Sepherion | $35,000 | N/A | $214,325 to $342,575 |
| Express Employment Professionals | $40,000 | Zero | $140,000 to $220,000 |
| Nextaff | $49,000 | 8% | $121,838 – $156,938 |
Wrap Up
Nextaff is an award-winning staffing franchise that you can consider investing in.
Nextaff’s franchise cost is meagre, and in return, it generates excellent revenue, which makes it one of the best ROIs.
If you want to learn more about this franchise or apply, you can visit the company’s website.
FAQ’s
How Much Is The Franchise Fee For Nextaff?
The franchise fee of Nextaff is $49,000. And you are required to pay this amount at the beginning to buy the trademark right of the brand.
Who Owns Nextaff?
Nextaff is owned by co-founders Cary Daniel and James Windmiller.
How Many Nextaff Franchise Locations Are There?
Nextaff currently has 36 locations, of which 26 are franchise-owned and 16 are in development.
How Many Staff Members Are Required To Run Nextaff Franchise?
You can run a Nextaff franchise office with minimal staff. Most of their franchisees start with one recruiter and one business development representative. Then, they start adding more recruiters as the business grows.