2026 FDD Issued May 14, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
Spherion Franchise Cost (2026)
A Spherion franchise costs an estimated $132,980 – $301,040 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $30,000 – $50,000 initial franchise fee (Item 5) and covers this format: General Staffing Office. Item 6 lists temporary sales fee and full-time placement fee: 30% of Temporary Gross Profits and Full-Time Placement Sales, subject to the conditions below.
- Total investment
- $133K – $301KItem 7 source and qualifications
- Franchise fee
- $30K – $50KItem 5 source and terms
- Temporary Sales Fee and Full-Time Placement Fee
- 30% of Temporary Gross Profits and Full-Time Placement SalesItem 6 conditions and fee bases apply
- Brand fund
- 0.25% of SalesItem 6 conditions and fee bases apply
- Units (2025)
- 180Item 20 source and scope
- Franchise exit rate
- 13.4% / yrCalculated 3-year average; definition and source
What stands out about Spherion
The franchisor, not the owner, bills customers and pays the temporary workers. Under Item 6 the owner receives a commission on gross profit, the franchisor keeps a share that works like a royalty of 30% of Temporary Gross Profits and Full-Time Placement Sales, and it deducts the support fee, software licenses, bad debts and other charges from that commission each month. A month that ends with a negative commission must be paid back.
Insurance is pooled, but claims come back to the office. Workers' compensation, liability and benefit costs are allocated to each office as direct costs, and the Item 6 notes add per-claim deductibles and lost-time charges that can reach tens of thousands of dollars for a serious injury. The franchisor offers financing to smooth those swings.
Quotas rise every year. The franchise agreement sets a gross profit quota for each contract year, scaled to market size, and an office that falls short pays the franchisor the share it would have earned on the missed amount, which makes slow early growth expensive.
Item 19 shows results climbing with tenure: offices open more than a decade averaged far more in sales than newer ones, and the all-franchisee average was $6,947,291, though most franchisees fell below it. The network itself has shrunk, with 18 franchised exits against 9 openings in 2025, and the 2024 figures count consolidated offices as closures.
What are the initial franchise fees and financial requirements for Spherion?
Item 5 lists an initial franchise fee of $30,000 – $50,000 for Spherion. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 14-16): the fee depends on the market's temporary help payroll: $30,000 for Tier 3, $40,000 for Tier 2 and $50,000 for Tier 1, paid in a lump sum at signing. One discount may apply: 25% for VetFran veterans or for buyers with 5 years of staffing experience, 25% to 35% for additional agreements, and up to 100% for qualifying Randstad employees. A Professional Services Addendum adds a $10,000 fee. Before opening you also pay CRM licenses (currently $110 per month each, an estimated $220 to $440) and buy computer hardware from the franchisor (an estimated $4,525 to $4,585).
Source: Spherion 2026 FDD, Item 5, PDF p. 14.
This record lists no minimum net worth or liquid-capital requirement for Spherion, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Spherion franchise? (Item 7)
Source: Spherion 2026 FDD, Item 7, PDF p. 25.
Item 7 of Spherion’s 2026 Franchise Disclosure Document estimates the total cost to open one general staffing office at $132,980 – $301,040. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fees | $30,000 | $50,000 |
| Computer System Hardware | $6,000 | $10,000 |
| Real Property | $2,500 | $2,500 |
| Furniture and Fixtures | $15,500 | $35,000 |
| Leasehold Improvements | $10,000 | $20,000 |
| Signs | $2,000 | $10,000 |
| Equipment | $500 | $15,000 |
| Opening Advertising | $7,500 | $12,500 |
| Training Expenses | $2,800 | $4,690 |
| Start-up Supplies | $510 | $1,050 |
| Insurance | $3,500 | $6,000 |
| Utility Expenses | $160 | $1,100 |
| Professional Fees | $1,050 | $5,200 |
| Business Licenses | $160 | $5,000 |
| Hardware Installation | $800 | $3,000 |
| Additional Funds for Working Capital | $50,000 | $120,000 |
| Total | $132,980 | $301,040 |
Item 7 (PDF pages 25-28) prints $132,980 to $301,040 for a new General Staffing office; its 16 lines add to that total. Working capital of $50,000 to $120,000 is the largest line and includes salaries for a salesperson and a recruiter. Real property covers one month of rent for about 1,500 square feet at about $20 per square foot a year. The initial franchise fee line is the $30,000 to $50,000 tier range.
What ongoing royalties and fees does Spherion charge? (Item 6)
Source: Spherion 2026 FDD, Item 6, PDF p. 16.
Item 6 of Spherion’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Temporary Sales Fee and Full-Time Placement Fee | 30% of Temporary Gross Profits and Full-Time Placement Sales | Every period | The franchisor keeps 30% of Temporary Gross Profits and of Full-Time Placement Sales and pays you a 70% commission each Accounting Period. A negative commission must be repaid within 30 days (notes 3 and 4). (Item 6, PDF p. 16) |
| Franchise Support Fee | Varies | When it applies | 1.9% of total gross payroll for temporary employees plus 1.9% of Full-Time Placement Sales, deducted monthly from your commission, for back-office payroll and billing, front-office systems and support. Rises each year with CPI-U, by no more than 5% (note 5). (Item 6, PDF p. 16) |
| SHL Talent Central License Fee | Varies | When it applies | Not currently passed on; the vendor currently charges $500 per site per year for applicant testing software. (Item 6, PDF p. 16) |
| Candidate Management System Fee | $75 per month | Every period | Currently $75 per month per full-access or franchisee administration license and $10 for view-only licenses, deducted from your commission; may rise with vendor increases. (Item 6, PDF p. 16) |
| Customer Relationship Management (CRM) System | $110 per month | Every period | Currently $110 per month per license, deducted from your commission; the franchisor estimates two to four licenses. (Item 6, PDF p. 17) |
| Financial Analysis Software | Varies | When it applies | Not currently passed on; about $42 per user per month if charged. (Item 6, PDF p. 17) |
| Phone & Fax Systems | Varies | When it applies | Set-up $100 for 5 users plus $15 per additional user; $5 per main line, $25 per talk license and $10 per fax line monthly, deducted from your commission. Desk phones are optional at $214 to $270 each. (Item 6, PDF p. 17) |
| Electronic Onboarding Package | Varies | When it applies | Not currently passed on; $1.44 per onboarding package if charged. (Item 6, PDF p. 17) |
| I9 Virtual Inspection Fee | Varies | When it applies | Currently $20 per inspection for temporary employees who cannot be verified in person. (Item 6, PDF p. 17) |
| The Work Number (TWN) | Varies | When it applies | $23.04 to $150.29 per employment verification, depending on the option. (Item 6, PDF p. 17) |
| Time and Expense Transaction Fee | Varies | When it applies | Not currently passed on; $1.25 per active employee per month if charged. (Item 6, PDF p. 17) |
| Gross Profit Quota Shortfall Fee | Varies | When it applies | If you miss the year's Gross Profit Quota, the franchisor's percentage of the quota minus its percentage of your actual gross profit. Quotas start at $62,400 in year 1 and rise to $656,250 (Tier 3), $840,000 (Tier 2) or $1,680,000 (Tier 1) by year 10 (note 6). (Item 6, PDF p. 18) |
| Spherion Marketing Fund | 0.25% of Sales | Every period | 0.25% of Sales, deducted from your commission or billed monthly; the franchisor spends a matching amount on name awareness. (Item 6, PDF p. 18) |
| Accounts Receivable Funding Fee | Varies | When it applies | On receivables over 60 days old: (Prime Rate + 1.5%) x 30/365 x the amount over 60 days, deducted each Accounting Period (note 7). (Item 6, PDF p. 18) |
| Reference Checking Software | Varies | When it applies | $2.50 per reference check sent through the preferred vendor. (Item 6, PDF p. 18) |
| Prospect Database Platform | Varies | When it applies | Not currently passed on; $118 per user per month if charged. (Item 6, PDF p. 18) |
| Uncollectible Customer Billings | Varies | When it applies | Billings uncollected after 270 days, or uncollectible earlier, plus receivables over 90 days that exceed the credit limit by 25% or $50,000, deducted from your commission (note 8). (Item 6, PDF p. 18) |
| Area Expansion | $15,000 | When it applies | $15,000 if the franchisor allows you to expand your Area; a larger addition may require a new agreement and fee. (Item 6, PDF p. 18) |
| Temporary Employee Wages | Varies | When it applies | Wages paid on forged, fraudulent, erroneous or improper time slips, deducted from your commission. (Item 6, PDF p. 18) |
| Purchases from Us or Our Affiliates | Varies | When it applies | Materials and services you buy through the franchisor, deducted from your commission (note 9). (Item 6, PDF p. 18) |
| Transfer Fee | Varies | When it applies | 50% of the then-current undiscounted initial franchise fee, paid when you request the transfer. (Item 6, PDF p. 18) |
| Indemnification | Varies | When it applies | Losses and expenses from certain of your acts or omissions. (Item 6, PDF p. 18) |
| Materials or Courses for Additional Training | Varies | When it applies | Cost of post-initial courses or materials, plus trainer travel and a training fee for on-site training (note 10). (Item 6, PDF p. 19) |
| National or Regional Meeting Attendance Fee | Varies | When it applies | Costs the franchisor incurs if you cancel or fail to attend a required meeting. (Item 6, PDF p. 19) |
| Revenue Sharing | Varies | When it applies | Cooperative placements with Randstad or other Spherion franchisees may require revenue sharing (note 11). (Item 6, PDF p. 19) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Spherion startup investment and modeled fees over 10 years
Spherion bills customers, pays the temporary employees and pays you a commission of 70% of Temporary Gross Profits and Full-Time Placement Sales, keeping 30%. The Franchise Support Fee is charged on gross payroll, and other fees are deducted from your commission. Because these charges are not based on your sales, this record does not produce an annual fee estimate or payback preset. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Spherion franchised outlet history
Source: Spherion 2026 FDD, Item 20, PDF p. 62.
Item 20 Table 3 reports 180 franchised outlets at the end of 2025. The company-owned table reports a further 0 outlets. Our calculated average annual franchised exit rate is 13.4% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 215 | 29 | 34 | 210 | 15.8% |
| 2024 | 210 | 10 | 31 | 189 | 14.8% |
| 2025 | 189 | 9 | 18 | 180 | 9.5% |
Franchised units went from 215 to 180 over 3 years (-35).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating, and some reported events may reflect mergers or reopenings. How we calculate the exit rate. How to read the Item 20 outlet tables.
8 units changed owners in 2025.
Item 20 Table 3 totals (PDF page 62) match Table 1 (PDF page 57). Counts include on-premise locations and offices under the discontinued Area-Based Franchise program, which Item 19 excludes. In 2024, 11 outlets were consolidated and are shown as ceased operations although the franchisees kept operating in the same areas. Table 4 (PDF page 62) prints a start-of-year company count of 0 for 2024 and 2025, but its own rows and Table 1 put it at 2 and 3; reacquisitions match Table 3. Table 5 lists no signed but unopened agreements and 10 projected openings for 2026.
How much do Spherion franchise owners make? (Item 19)
Source: Spherion 2026 FDD, Item 19, PDF p. 54.
Item 19 of the 2026 FDD reports average Sales, all franchisees operating at least 1 year of $6,947,291 (Fiscal 2025, 57 General Staffing franchisees open the full year, per franchisee with agreements and offices combined; 16 (28.1%) surpassed the average). Besides sales, Spherion’s Item 19 reports “Average Gross Profit (Sales minus temporary payroll and other Direct Costs, before the 70/30 commission split)” and “Median Gross Profit (before the 70/30 commission split)”. Each figure follows the franchisor’s own definition in Item 19, which decides which costs are deducted and whether an owner’s salary is one of them. None of them is necessarily an owner’s take-home pay.
See every Spherion Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Spherion’s Item 19 figures and sample limits.
How long is the Spherion franchise agreement term?
Source: Spherion 2026 FDD, Item 17, PDF p. 51.
The standard Spherion franchise agreement runs 10 years, with renewal terms of 5 years.
Item 17 (PDF page 51): a 10-year term, renewable for 5 years under the then-current franchise agreement if you give notice, have performed, and sign a new agreement and a general release.
How long does it take to open a Spherion franchise? (Item 11)
Source: Spherion 2026 FDD, Item 11, PDF p. 37.
Item 11 of the 2026 FDD states the time from signing a lease to opening: 45 to 90 days.
Franchises with a similar investment range
These published records are selected by proximity to Spherion’s $132,980 low-end Item 7 investment, starting with Business Services. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
Compare other business services franchises
Sources
Spherion Staffing, LLC Franchise Disclosure Document, issued May 14, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 14
- Item 6: cited PDF p. 16
- Item 7: cited PDF p. 25
- Item 19: cited PDF p. 53
- Item 20: cited PDF p. 62
- Agreement term (Item 17): cited PDF p. 51
Page references for Spherion use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued May 14, 2026).
- November 2, 2026: Independently checked against the May 14, 2026 Minnesota FDD: cover, Items 1, 5, 6, 7, 11, 17, 19 and 20. Item 6 now lists all 25 rows (the draft had 8) and records the commission split as the royalty, with a model note. The support fee is charged on payroll rather than sales. Corrected the count of franchisees above the Item 19 average sales from 19 to 16. Recorded the 11 consolidated outlets and a Table 4 misprint, and added the opening time and source notes. Rewrote the analysis.