About DES Franchise Group Franchise
DES Employment Group is a staffing and human resources franchise providing temporary staffing, full time placements, and outsourced payroll and HR solutions to businesses across multiple sectors.
The brand specializes in placing qualified professionals in industrial, clerical, IT, and medical roles.
The franchise fee is $39,000, and the company has been franchising since 2023.
DES Franchise Group Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,000 | One-time payment upon signing |
| Royalty Fee | 3.5% of your gross sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of your gross sales | National brand fund |
| Total Investment Range | $66,500 – $103,050 | Includes build-out, inventory, working capital |
The investment range of $67K–$103K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3.5% of your gross sales) and marketing fee (1% of your gross sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $39,000 | $39,000 |
| Rent and Lease Security Deposit | $500 | $1,500 |
| Utilities | $0 | $200 |
| Leasehold Improvements | $0 | $2,000 |
| Market Introduction Program | $2,500 | $4,000 |
| Furniture, Fixtures, and Equipment | $0 | $10,000 |
| Computer Systems | $300 | $1,500 |
| Insurance | $500 | $5,000 |
| Signage | $750 | $2,000 |
| Office Expenses | $250 | $350 |
| Licenses and Permits | $200 | $500 |
| Professional Fees (lawyer, accountant, etc.) | $1,000 | $3,000 |
| Travel, lodging and meals for initial training | $1,500 | $4,000 |
| Additional funds (for first 3 months) | $20,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Technology Fee | $300 per month |
| Audit Fee | Our actual cost (if non-compliance or under-reporting >3%) |
| Market Cooperative Contribution | As determined by co-op (currently none, max 5% of gross sales, not less than 1%) |
| Local Marketing/Required Spending | 1% of your gross sales |
| Replacement / Additional Training fee | Currently, none |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge (currently none) |
| Non-compliance fee | $500 (then $250 per week) |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year |
| Insufficient funds fee | $30 |
| Costs of collection | Our actual costs |
| Special support fee | $600 per day |
| Customer complaint resolution | Our expenses |
| Special inspection fee | $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated damages | An amount equal to royalty fees and Brand Fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 52 classroom hours, 24 on-the-job hours |
| Classroom Training | 52 hours |
| On-the-Job Training | 24 hours |
| Training Location | Des Moines, IA or Your Location |
| Additional Training | Franchisor may require additional training programs or refresher courses in the future. Currently, no fee is charged for sending a new general manager to training, but the franchisor reserves the right to do so. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Approximately 500,000 people |
| Description | Usually specified as a group of zip codes, but may use other boundaries such as county lines, political boundaries, streets, geographical features, or trade area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Unlimited number of 5-year terms |
| Renewal Conditions | Franchisee must give 90-180 days advance notice, be in compliance with all contractual obligations, renovate to then-current standards, sign the then-current form of franchise agreement and related documents (including personal guaranty), and sign a general release. |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs incurred by franchisor |
| Transfer Conditions | Buyer must meet franchisor's standards, not be a competitor, sign then-current franchise agreement and related documents, all payments to franchisor must be current, buyer completes training, franchisee signs general release, and business complies with current system specifications. |
| Termination for Cause | Franchisor may terminate for various causes, including non-payment (10-day cure), other breaches (30-day cure), or without cure period for serious defaults like misrepresentation, false information, bankruptcy, loss of location, confidentiality/non-compete violations, abandonment, slander, refusal to cooperate with inspections, health/safety danger, repeated defaults, or felony conviction. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term and for two years after termination/expiration, neither the franchisee, any owner, nor their spouse may have an ownership interest in, lend money to, provide services to, or be employed by any competitor within five miles of the former territory or any other DES Employment Group business. Also includes non-solicitation of employees and customers for two years post-term. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee is required to participate personally in the direct operation of the business and devote substantial time and attention to it. If the business is an entity, a 'Principal Executive' must be designated, own at least 10% of the business, and complete the initial training program. |
| Required Suppliers | Franchisor is a required supplier for technology licenses (CRM and Microsoft 365 license). Franchisees must purchase or lease CRM software and hardware, and related software and hardware as specified by the franchisor. |
| Supply Restrictions | Franchisor has the right to require franchisees to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items from the franchisor, its designee, or approved suppliers, or according to franchisor specifications. |
| Franchisor Revenue from Suppliers | $0 (as a new franchisor in the prior fiscal year) |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. |
DES Franchise Group Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
DES Franchise Group Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DES Franchise Group System Growth
DES Franchise Group currently operates 4 franchised locations and 8 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 12 |
| 2021 | 0 | 0 | 12 |
| 2022 | 0 | 0 | 12 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
DES Franchise Group Franchise — FAQ
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