About Nextaff Group Franchise
NEXTAFF is a staffing services franchise where franchisees operate businesses that provide temporary, temp-to-hire, and direct hire staffing services.
Franchisees recruit, screen, and hire quality talent (Field Employees) to fulfill client needs within designated industry verticals including Commercial (industrial, office, clerical, administrative, professional, managerial), Healthcare (clinical healthcare positions), and Technology (information technology).
The target customers are businesses seeking staffing solutions, and the franchise serves a highly competitive market against both national and local staffing brands.
Nextaff Group Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,000 | One-time payment upon signing |
| Royalty Fee | 9% of Gross Wages (sliding scale down to 7.5%) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Greater of $100/week or 1% of Gross Wages (may increase to 1.5%) | National brand fund |
| Total Investment Range | $60,669 – $158,886 | Includes build-out, inventory, working capital |
The investment range of $61K–$159K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (9% of Gross Wages (sliding scale down to 7.5%)) and marketing fee (Greater of $100/week or 1% of Gross Wages (may increase to 1.5%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Traditional) | $49,000 | $49,000 |
| Lease of Office & Related Deposit (Traditional) | $2,000 | $4,500 |
| Leasehold Improvements / Construction / Remodeling (Traditional) | $1,000 | $5,000 |
| Exterior Signage (Traditional) | $500 | $7,500 |
| Furnishings, Fixtures and Equipment (Traditional) | $5,000 | $10,000 |
| Computer System (Traditional) | $4,434 | $5,423 |
| Utility Deposits and Fees (Traditional) | $0 | $250 |
| Business Licenses (Traditional) | $150 | $400 |
| Insurance (Traditional) | $1,500 | $3,000 |
| Launch Fee (Traditional) | $6,321 | $6,321 |
| Misc. Expenses incl. Travel and Training (Traditional) | $4,800 | $5,300 |
| Additional Funds - first 6 months (Traditional) | $49,182 | $62,193 |
| Total Traditional Franchise | $123,887 | $158,886 |
| Initial Franchise Fee (Virtual) | $49,000 | $49,000 |
| Lease of Office & Related Deposit (Virtual) | $0 | $500 |
| Leasehold Improvements / Construction / Remodeling (Virtual) | $0 | $250 |
| Exterior Signage (Virtual) | $0 | $0 |
| Furnishings, Fixtures and Equipment (Virtual) | $250 | $500 |
| Computer System (Virtual) | $1,678 | $1,678 |
| Utility Deposits and Fees (Virtual) | $0 | $250 |
| Business Licenses (Virtual) | $150 | $400 |
| Insurance (Virtual) | $1,500 | $3,000 |
| Launch Fee (Virtual) | $1,808 | $1,808 |
| Misc. Expenses incl. Travel and Training (Virtual) | $0 | $500 |
| Additional Funds - first 6 months (Virtual) | $6,283 | $9,733 |
| Total Virtual Franchise | $60,669 | $67,619 |
| Total Conversion Franchise | $1 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 or 10% of sales price |
| Renewal Fee | None |
| Technology Fee | Varies by vendor; Traditional required: Avionte $179/mo/user + $5.99/mo/active employee, Microsoft $39.80/mo/user, Lightcast $187/mo, HubSpot $160/mo/sales user, Staffing Referrals $85/mo/user, eSkill varies |
| Audit Fee | Cost of audit if required |
| Brand Fund | Greater of $100/week or 1% of Gross Wages |
| Collateral Reserve Deduction | 1% of Gross Wages until balance reaches $25,000 |
| Non-Compliance Processing Surcharge | 10% of client payment |
| Non-Compliance Weekly Finance Charge | 0.245% per week on accounts over 60 days |
| High-Risk Surcharge | 2% of Gross Wages on accounts requiring franchisor involvement |
| Vertical Fee | $10,000 per additional vertical |
| Onboarding Services Fee | 2% of Gross Wages for placements outside approved state |
| Strategic Account Commission | 15% of Gross Margin |
| Annual Meeting Registration Fee | Up to $600 per franchise per year |
| Insurance - Commercial/IT | 0.39% of Gross Wages |
| Insurance - Healthcare | 0.59% of Gross Wages |
| Credit Insurance | 0.135% of Gross Revenue |
| Cyber Insurance | 0.135% of Gross Revenue |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 130 total hours (Traditional); Virtual training conducted entirely virtually |
| Classroom Training | 40 hours |
| On-the-Job Training | 50 hours (franchise launch coaching and on-the-job training at franchise location and via zoom/telephone) |
| Training Location | Online (40 hours), Overland Park, KS (40 hours classroom), Franchise Location and Virtual Coaching (50 hours) |
| Additional Training | Franchisor may require up to 10 additional days of onsite training. Supplemental and refresher training programs may be required. Annual event training meeting attendance required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (within granted industry vertical for Traditional Commercial); Non-exclusive for Virtual Healthcare and Technology verticals |
| Exclusive Territory | Yes |
| Territory Size | Defined by county and/or zip codes and/or other boundary limitations |
| Description | For Traditional Commercial vertical, franchisees receive a defined geographic area with exclusivity within their granted industry vertical. The three industry verticals are Commercial, Healthcare, and Technology. Franchisor retains rights to operate or grant franchises in other verticals within the same geographic area, obtain Strategic Accounts, and advertise within the territory. Virtual Healthcare and Technology franchisees do not receive exclusive territory. Minimum Performance Standards apply and failure to meet them may result in territory reduction or termination. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Up to four additional 5-year terms |
| Renewal Fee | No fee for renewal |
| Renewal Conditions | Must give 180 days written notice; must be in good standing and substantial compliance; must sign then-current franchise agreement (which may have different terms including territory reductions, increased Minimum Performance Standards, and increased advertising contributions); must cure any deficiencies; must execute general release if permitted by law |
| Transfer Fee | $10,000 or 10% of sales price (10% held in escrow for up to 90 days; reduced to $10,000 if franchisee trains transferee and stays 90+ days; no fee for transfer to immediate family) |
| Transfer Conditions | Franchisor approval required; transferee must qualify and assume all obligations; all amounts owed must be paid; transferee must complete training; release must be signed; non-compete agreement required for 2 years within 60 miles |
| Termination for Cause | 30 days written notice with opportunity to cure for curable defaults (nonpayment, failure to maintain premises, unauthorized use of marks, failure to meet standards, etc.); immediate termination without cure for non-curable defaults (bankruptcy, abandonment for 5 consecutive days, material misrepresentation, felony conviction, repeated failures) |
| Non-Compete Period | 2 years |
| Non-Compete Details | No involvement in any Competitive Business within 60 miles of franchisee's location or within 60 miles of any other NEXTAFF Franchise for 2 years after termination/expiration. During the term, no involvement in any business providing Services anywhere in the U.S. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchise must at all times be under the franchisee's direct, day-to-day, full-time supervision (or an approved managing partner/member/manager who completes the training program). The person responsible for day-to-day supervision must be physically present at the premises during operating hours, assume responsibilities on a full-time basis, and may not engage in any other business requiring significant management responsibility. For Traditional franchises, a dedicated account manager/recruiter and dedicated sales development representative must also be hired before opening. |
| Required Suppliers | Franchisees must process payroll through Nextaff and/or its designated payroll service provider. Required technology vendors include Avionte, Microsoft, Sense. For Traditional franchises, Lightcast, HubSpot Sales, Indoor Signage, and certain promotional materials are also required. Franchisees must use approved vendors for direct mail marketing and payroll software. |
| Supply Restrictions | Franchisees must use only approved vendors designated by the franchisor for designated items. Franchisees may request approval for alternative vendors by submitting specifications and information to the franchisor for evaluation within 30 days. |
| Franchisor Revenue from Suppliers | In fiscal year ending December 31, 2024, the franchisor received no revenue from approved vendors or service providers. The franchisor reserves the right to receive compensation from vendors in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | NEXTAFF may finance a portion of the initial franchise fee for qualifying new franchisees and existing franchisees purchasing additional locations. Terms: 25% down payment, interest at Prime + 2%, with repayment over 12 months for 1 location, 24 months for 2 locations, or 36 months for 3 locations. No security required. Additionally, the franchisor finances franchisee payroll by employing Field Employees and paying their wages, then collecting from client invoices. |
Nextaff Group Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Nextaff 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.
Nextaff Group System Growth
Nextaff Group currently operates 28 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 6 | 2 | 34 |
| 2023 | 3 | 4 | 35 |
| 2024 | 4 | 7 | 31 |
Transfers: 6 | Closures: 7
State Registrations
Registered in 9 states: CA, IL, IN, MI, MN, SD, UT, VA, WI
Franchisor Financials (Item 21)
Audited by Jones, Nale & Mattingly PLC for year ending December 31.
Nextaff Group Franchise — FAQ
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