Spherion franchise unit economics
Spherion franchisees run a roughly 1,500 square foot general staffing office placing temporary and full-time workers. The franchisor employs the staff, bills the customers and pays a commission out of gross profit. Across 57 franchisees with at least a year of years open the 2025 average was $6,947,291 of billings and $1,424,192 of gross profit, of which the owner keeps 70%. A ten-year office earns 2.56 times what an one-to-five-year office does.
- Primary source
- Spherion Staffing, LLC, 2026 Franchise Disclosure Document
- Items read
- Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 57 of 180 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
An owner here is paid a commission: 70% of gross profit, worth $996,934 at the average franchisee and $579,843 at the median. The number to watch is the gross profit rate, and the headline 22.2% is an average of individual ratios, the system actually converts 20.5 cents of every billed dollar into gross profit.
- The filed 22.2% gross profit rate overstates what the system converts. $1,424,192 of gross profit on $6,947,291 of billings is 20.5% *, 1.7 points, worth $118,104 a year at average billings, so benchmark against 20.5%.
- A ten-year office earns 2.56 times an one-to-five-year office. $1,286,076 of commission against $501,448 *, and the sales gap is almost identical at 2.63 times, so the build-up here is volume.
- The median owner takes 58% of what the average owner takes. $579,843 against $996,934 *, because the largest office in the system billed $55,061,325 against a smallest at $439,570.
- Workers’ comp, insurance and paid leave are deducted before the split. They sit inside direct costs, so the owner has 70% of every one of them. That is why the gross profit rate is the number that decides the year.
- Missing the gross profit quota costs the brand’s 30% of the shortfall. Payable as a deficiency fee and enforceable by termination, so a quiet year is billed as though it had happened.
How much does a Spherion franchise make?
The average Spherion unit reported $6,947,291 of revenue in the 2026 FDD, and the median reported $4,051,231. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 8.3% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top Spherion performers
Spherion splits its locations into groups instead of publishing one average. The best group averaged $8,917,074 a year. The worst averaged $3,393,756. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $4,051,231. The average was $6,947,291. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 2.6× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Territory, and how much of it is real.This model sells from a territory rather than a building. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
- What you spend to open.Opening costs $132,980 to $301,040, a 2.3× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
- Lease economics.Occupancy cost ran 20.5% of sales in this filing. The rent does not fall when sales do, so the same lease is a far heavier line at the bottom of the system than at the top. That is how a weak site compounds into a weak profit line.
Live operating levers
- Occupancy, the line that does not flex.Rent and building costs take 20.5% of sales. Sales per square foot and the hours the space is earning are the only two ways to move it, since the rent itself is fixed at signing.
- Placements, the operating driver.This model bills on placements. The fee is earned when someone is hired and lost again if they leave inside the guarantee, so a placement that does not stick costs the firm twice. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Fees, and where the minimum bites.Fees run about 8.3% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
- The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.
Context you underwrite around
- The reporting screen.57 of 180 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
Gross profit decides it
Twenty and a half cents in the dollar, and the owner keeps seventy percent of it.
| Years open | Franchisees | Billings | Gross profit | Rate * | Owner commission * |
|---|---|---|---|---|---|
| 1 to 5 years | 18 | $3,393,756 | $716,354 | 21.1% | $501,448 |
| 6 to 10 years | 7 | $7,080,230 | $1,356,070 | 19.2% | $949,249 |
| Over 10 years | 32 | $8,917,074 | $1,837,252 | 20.6% | $1,286,076 |
| All 57 | 57 | $6,947,291 | $1,424,192 | 20.5% | $996,934 |
The billings and gross profit figures are as the brand reported it and the rate and commission columns apply the filed 70% split to them, marked *.
The filed gross profit percentages average each franchisee’s own ratio. 22.2% against the 20.5% that $1,424,192 on $6,947,291 actually gives *, and the same gap appears in every cohort, so use the lower figure when comparing yourself.
One point of gross profit rate is worth $69,473 of gross profit at average billings. And $48,631 of commission *, which is why bill-rate discipline on a single large account moves this business more than winning a small one.
The highest-selling franchisees earned $9,741,152 of gross profit and the lowest-selling $66,579. Commissions of $6,818,806 and $46,605 *, a 146-fold range inside one brand.
Gross profit rates run from 15.0% to 60.5% across the system. With every cohort bottoming at 15.0% or 15.4%, so the minimum is consistent and the ceiling is where the difference lives.
The median franchisee’s gross profit is 58.2% of the average. $828,347 against $1,424,192 *. The same ratio as billings.
What years open is worth
Ten years buys two and a half times the business.
| Years open | Average billings | Median | Highest | Lowest | Gross profit rate, filed |
|---|---|---|---|---|---|
| 1 to 5 years (18) | $3,393,756 | $2,710,133 | $10,061,454 | $439,570 | 23.6% average, 20.8% median |
| 6 to 10 years (7) | $7,080,230 | $4,976,272 | $23,449,320 | $1,261,144 | 20.4% average, 21.1% median |
| Over 10 years (32) | $8,917,074 | $4,896,516 | $55,061,325 | $858,754 | 21.8% average, 21.0% median |
| All 57 | $6,947,291 | $4,051,231 | $55,061,325 | $439,570 | 22.2% average, 21.1% median |
Every figure is as the brand reported it for franchisees with at least a year of years open, with the 1-to-5-year group excluding a Salt Lake City resale.
A one-to-five-year office already bills $3,393,756. 38% of what an office over ten years old bills. So the first five years get a young office most of the way to half the mature figure.
The over-ten-year group has the widest range in the system. $55,061,325 against $858,754, with a median of $4,896,516 that sits below the six-to-ten-year median *, so years open alone guarantees very little.
The six-to-ten-year group reports the lowest gross profit rate. 19.2% against 21.1% for the youngest offices *, consistent with growth through larger, lower-margin accounts as an office scales.
Seven franchisees make up the entire six-to-ten-year group. Against 18 in the youngest group and 32 over ten years, the shape of a system that recruited heavily long ago and again recently.
Six franchisees were excluded for trading less than the full year. Alongside those who left during 2025 and the whole area-based program, so 57 of a larger franchisee base sits behind these figures.
The split and what sits behind it
Seventy percent is the headline. Read what comes off first.
| Line | Basis | Amount | Share of billings * |
|---|---|---|---|
| Billings | n/a | $6,947,291 | 100% |
| Direct costs | Wages, payroll taxes, workers’ comp, insurance, paid leave, benefits | $5,523,099 | 79.5% |
| Gross profit | n/a | $1,424,192 | 20.5% |
| Brand keeps | 30% of gross profit | $427,258 | 6.1% |
| Owner commission | 70% of gross profit | $996,934 | 14.4% |
| Franchise support fee | 1.9% of temporary wages and placement sales | Up to $104,939 | Up to 1.5% |
| Marketing fund | 0.25% of sales | $17,368 | 0.25% |
Billings and gross profit are as the brand reported it, direct costs are the difference between them. The remaining rows apply the filed rates, with the support fee shown as an upper bound because wages is a subset of direct costs, marked *.
The brand keeps $427,258 of a $1,424,192 gross profit before the support fee and marketing fund. 6.1% of billings *, which is how a 30% share of margin looks when expressed the way most franchise royalties are.
Workers’ compensation, health cover, holiday and sick pay all sit inside direct costs. So they come off before the 70/30 split and the owner absorbs 70% of any increase, a claims year lands on the owner, in proportion.
A client account is measured by the gross profit it produces, and the quota is enforced. Failing the annual gross profit quota triggers a deficiency fee equal to the brand’s 30% of the shortfall, and failure to pay it can end the agreement.
A commission below zero in any accounting period is payable back within 30 days. Or deducted from later commissions, so a bad period here can end below zero.
Wages cash stays with the brand throughout. The brand employs the temporary staff, bills the customers and remits a commission. Is why $50,000 to $120,000 of working capital covers six to eleven months.
Territory, build and the system
The territory is priced on the size of the local wages pool.
| Tier | Temporary help wages in the area | Initial fee | Average billings as a share of the pool * |
|---|---|---|---|
| Tier 3 | $25,000,001 to $100,000,000 | $30,000 | 6.9% to 27.8% |
| Tier 2 | $100,000,001 to $300,000,000 | $40,000 | 2.3% to 6.9% |
| Tier 1 | $300,000,001 to $500,000,000 | $50,000 | 1.4% to 2.3% |
The tiers, wages groups and fees are as the brand reported it, and the final column measures the $6,947,291 average billings against each group, marked *.
The area is sized by the local temporary help wages from labor statistics. Households or radius. The most directly useful territory measure in this library, because it states the size of the market you are buying into.
A Tier 1 area holds six to twenty times the wages of a Tier 3 area for a fee 67% higher. $50,000 against $30,000 *, so on paper the larger areas are much cheaper per dollar of addressable wages.
An office costs $132,980 to $301,040 to open. 0.13 to 0.30 times the average owner’s annual commission *, of which $50,000 to $120,000 is working capital covering six to eleven months. New offices are expected to run negative cash flow at first.
Expanding an area costs $15,000, or a fresh franchise fee above $25 million of added wages. And an exclusive territory is expressly excluded. The brand and its Randstad affiliates may operate inside the area under other marks and for other services.
The system went from 215 franchised outlets to 180 across three years. A 16.3% decline, though 11 of the 2024 departures were offices consolidated by franchisees who kept operating. Company-owned outlets went from zero to two and back to zero.
Questions we get asked
Questions an owner asks.
What does a Spherion franchisee earn?
Across 57 franchisees with at least a year of years open, 2025 billings averaged $6,947,291 and gross profit $1,424,192, giving a 70% commission of $996,934 on our reading. The median franchisee's gross profit was $828,347, a commission of $579,843. The largest billed $55,061,325 and the smallest $439,570.
Why does the gross profit rate matter more than billings?
Because the owner is paid on gross profit. The system converts 20.5 cents of every billed dollar into gross profit. One point of rate is worth $69,473 of gross profit and $48,631 of commission at average billings. Rates across the system run from 15.0% to 60.5%.
Is the filed 22.2% figure comparable to my own?
Only with care. The filed percentages average each franchisee's own ratio. Dividing the filed totals gives 20.5%, and the same 1.7-point gap appears in each cohort. Benchmark against 20.5%.
What does the brand take?
30% of temporary gross profit and 30% of full-time placement billings, retained before the commission is paid. On top of that a franchise support fee of 1.9% of gross temporary wages and of full-time placement sales, and 0.25% of sales to the marketing fund. On the average franchisee the 30% alone is $427,258, or 6.1% of billings.
What sits inside direct costs?
Temporary employee wages and payroll taxes, and also workers' compensation, liability and bonding insurance, transportation, vacation, holiday and sick pay, profit sharing and health benefits. All of it comes off before the 70/30 split, so the owner has 70% of any increase in any of those lines.
What is the gross profit quota?
An annual target set by tier for each of the first ten years. Missing it triggers a deficiency fee equal to the brand's 30% of the shortfall, and failure to pay that can end the agreement. For a multi-market area, the brand may take back a market where a full-service office is absent or the market's quota is missed.
What does an office cost to open?
$132,980 to $301,040, of which $34,745 to $65,025 goes to the brand. The initial fee is $30,000, $40,000 or $50,000 by tier, discounted 25% for veterans, for five years of staffing experience, and for a second agreement. Cash to run the business day to day of $50,000 to $120,000 covers six to eleven months.
Which two numbers should run monthly?
Gross profit rate against 20.5%, because it is the base you are paid on and a single point is worth $48,631 of commission. And gross profit against the quota, because the shortfall is billed at the brand's 30% whether the work happened or otherwise.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
Questions worth putting to Spherion
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Spherion locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is your gross profit rate really?
A structured review of your unit economics, cash forecast. Reporting, built around the 20.5% this system converts, the $48,631 a single point is worth. A quota whose shortfall is billed at the brand's 30%.
Request the reviewthe franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Spherion reads against the rest of the staffing offices group: AtWork Group · Express Employment Professionals · Labor Finders · PrideStaff.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?How royalty, ad fund and minimums actually work on a monthly statement.
- How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
- Do I need a bookkeeper, a controller, or a CFO?What each one owns, and the point at which the next one pays for itself.
- Revenue was the highest it has been. Why did profit not move?Where the extra revenue went, line by line.