About Nextaff Office Franchise
NEXTAFF is a staffing franchise that provides temporary staffing services including recruiting, screening, and hiring of quality talent.
Franchisees operate a NEXTAFF Office that recruits temporary individuals (Field Employees) to fulfill staffing services directly to clients, offering temporary, temp-to-hire, and direct hire placements across three industry verticals: Commercial (including Industrial, Office, Clerical, Administrative, Professional and Managerial), Information Technology, and Healthcare.
Target customers are businesses seeking qualified temporary and permanent staffing solutions.
Nextaff Office Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% to 8% of Gross Wages (sliding scale based on volume) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Greater of $100 per week or 0.75% of Gross Wages (may increase to greater of $100/week or 1% of Gross Wages). Waived for first 6 months. | National brand fund |
| Total Investment Range | $126,850 – $191,525 | Includes build-out, inventory, working capital |
The investment range of $127K–$192K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% to 8% of Gross Wages (sliding scale based on volume)) and marketing fee (Greater of $100 per week or 0.75% of Gross Wages (may increase to greater of $100/week or 1% of Gross Wages). Waived for first 6 months.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Lease of Office & Related Deposit | $2,000 | $4,500 |
| Leasehold Improvements / Construction / Remodeling | $1,000 | $5,000 |
| Signage | $500 | $7,500 |
| Furnishings, Fixtures and Equipment | $5,000 | $10,000 |
| Computer System | $2,700 | $3,800 |
| Utility Deposits and Fees | $0 | $250 |
| Business Licenses | $150 | $400 |
| Insurance | $1,500 | $3,000 |
| Launch Fee | $8,858 | $8,858 |
| Miscellaneous Expenses (including travel and living expenses during training) | $3,350 | $3,850 |
| Additional Funds (initial 6 months of operations) | $61,792 | $104,367 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | No fee for renewal |
| Technology Fee | Avionte $132.50/month/user; EMSI $100/month/office; Microsoft E1 $8/month, E3 $20/month; Indeed Resume $150-$300/month; Staffing Referrals $40/month |
| Audit Fee | Cost of audit if required |
| Guaranty and Collateral Reserve | 0.5% of Gross Wages until balance reaches $10,000 |
| Non-Compliance Processing Surcharge | 10% of client payment |
| Non-Compliance Weekly Finance Charge | 0.192% per week on accounts over 60 days old |
| Insurance | 0.15% of Gross Wages for commercial/IT; 0.28% of Gross Wages for healthcare |
| Appointment Provider | All costs associated with appointment setting service if required |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 46.65 hours online + 51.25 hours classroom + 100 hours on-the-job (approximately 197.9 total hours) |
| Classroom Training | 51.25 hours |
| On-the-Job Training | 100 hours (office launch and on-the-job training at franchisee's office and via zoom/telephone) |
| Training Location | Online training remotely; Classroom training at Overland Park, Kansas offices; On-the-job training at franchisee's NEXTAFF Office |
| Additional Training | Franchisor may require up to 10 additional days of onsite training. Supplemental and refresher training may be required. Annual event training meeting attendance required. 46.65 hours of online training also included. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive within designated industry vertical (except IT vertical which has no territory protection for services) |
| Exclusive Territory | Yes |
| Territory Size | Determined by county and/or zip codes and/or other boundary limitations |
| Description | Territory is defined by geographic area and industry vertical. Three verticals: Commercial, Information Technology, and Healthcare. IT vertical franchisees do not receive an exclusive territory for services, only protection against another physical location. Minimum Performance Standards must be met to maintain territory rights. Failure to meet standards 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 be in good standing and substantially complied with Franchise Agreement; must give 180 days written notice; must sign new franchise agreement (which may have different terms including territory changes, increased Minimum Performance Standards, and increased advertising contributions); must execute general release if permitted by law; must cure any deficiencies; eligible for reduced royalty rates upon renewal. |
| Transfer Fee | $10,000 (no fee for transfer to immediate family members or heirs) |
| Transfer Conditions | Transferee must qualify and assume all obligations; all amounts owed must be paid; transfer fee paid; training arranged for transferee; franchisee signs release and non-compete; current agreement signed by new franchisee; lease assigned if applicable; franchisor approval required (not unreasonably withheld). Franchisor has right of first refusal. |
| Termination for Cause | 30 days to cure for most defaults including nonpayment, failure to maintain premises, unauthorized use of marks, failure to comply with standards, unauthorized assignment. Immediate termination without cure for bankruptcy, abandonment (5 consecutive days), material misrepresentation, felony conviction, failure to comply with laws (10 days notice). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term: no involvement in any Competitive Business providing staffing services anywhere in the U.S. After termination/expiration: for 2 years, no involvement in any Competitive Business within 60 miles of franchisee's location or within 60 miles of any other NEXTAFF Office. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The office must at all times be under the franchisee's direct, day-to-day, full-time supervision (or an approved managing partner/member/manager who has completed training). If an operating manager supervises, the franchisee must remain active in overseeing operations unless Minimum Performance Standards have been achieved. The person responsible for day-to-day supervision must work full-time and may not engage in conflicting business activities. Franchisee must also hire a dedicated account manager/employee recruiter before opening (separate from the salesperson). |
| Required Suppliers | Franchisees must process payroll through NEXTAFF or its designated payroll service provider. Required software vendors include Avionte (Staffing ATS), EMSI (Workforce Market Data), and Microsoft Office. Must use Microsoft OneDrive for data storage. Must purchase internal NEXTAFF signage and certain promotional materials from franchisor. |
| Supply Restrictions | Franchisees must use only approved vendors designated by franchisor for direct mail marketing and payroll processing software. Must obtain approval before using any unapproved items, services, or suppliers. |
| Franchisor Revenue from Suppliers | In fiscal year ending December 31, 2021, franchisor received no revenue from approved vendors or service providers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | NEXTAFF may finance a portion of initial franchise fees for existing franchisees purchasing additional locations. Terms: 25% down payment, 12 months for 1 location, 24 months for 2 locations, 36 months for 3 locations, at Prime + 2% interest rate. NEXTAFF also 'finances' franchisee payroll by employing Field Employees and paying their wages, collecting from clients, and remitting the balance to franchisees. |
Nextaff Office Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Nextaff Office 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 Office System Growth
Nextaff Office currently operates 28 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 6 | 1 | 19 |
| 2020 | 3 | 0 | 22 |
| 2021 | 8 | 1 | 29 |
Transfers: 3 | Closures: 2
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Jones, Nale & Mattingly PLC for year ending December 31.
Nextaff Office Franchise — FAQ
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