Why California Is a Great Market to Open an Express Employment Professionals Franchise

As Express Employment Professionals continues to lead the staffing industry with nearly 900 units globally, the brand has set its sights on California for strategic franchise growth. With its diverse economy and high demand for staffing services, California presents a unique opportunity for the staffing giant to expand its footprint.

Why California?

The demand for staffing services in California remains strong, buoyed by the state’s dynamic economy and significant workforce. California boasts a nominal GDP of nearly $3.9 trillion, making it the world’s fifth-largest economy. The state experienced a real GDP growth rate of 6.1% from 2022 to 2023, indicating a robust economic expansion. 

As of July 2024, California’s job market has been expanding for 50 months, with the state creating 107,100 nonfarm payroll jobs in the first six months of 2024. This is more than double the number of jobs created during the same period in 2023. California’s gain of 43,700 jobs for May 2024 accounted for 16.1% of the nation’s overall gain of 272,000 jobs, which is notably stronger than California’s 11% share of jobs nationally. The California Economic Forecast predicts that employment growth will increase by 1.8% in 2024, with the largest contributions coming from professional business services, leisure services and healthcare. 

“Ignore the headlines that everyone’s moving out of the state — our company has shown major success in California,” said Dan Gunderson, who handles new territory development on the West Coast. “Our numbers have fallen in line with system-wide numbers. There’s still plenty of business. With our model being a broad-based staffing service, the number of jobs in California still lends itself great to our business model.”

And Express Employment Professionals has a long history in California, with 68 locations and the potential to grow to 80. “We’ve been doing business in California for almost 40 years. When you look at the staffing landscape in California, you won’t find many big names with that many locations. We’ve had longstanding success as a staffing franchise,” Gunderson said.

Debbie Friedrich, co-owner of two Express offices in California and a Franchise Developer, shared her experience: “I am a lifer in the staffing industry — I started in my early 20s. I joined Express in 2016 as a corporate developer with 23 years in the industry. When an opportunity presented itself to own a franchise myself in 2021, I got the itch. We’ve been having a great run with it so far. I’ve really enjoyed being back in the Express family as a franchisee.”

Today, as both a franchisee and a Franchise Developer, Friedrich says she’s seen first hand the level of demand for staffing services within California. 

“Businesses are very strong and healthy here, and industries are very aware of how to leverage the staffing industry,” said Friedrich. “Our clientele are very educated and sophisticated buyers, which is great news for us. We provide a service that is top-notch and ahead of our competition, and an extra value we can bring to the table. We have a lot of major corporations in California that utilize staffing firms for their contingent staff. Most businesses struggle today to find the right caliber of associate, and working with Express, we can make that a lot easier.”

How Express Supports Franchisees in California

Express offers robust support for both new and existing franchisees, ensuring they navigate California’s unique regulatory environment with ease. “There’s a lot of support for new franchisees, and our team is very experienced with the different laws and regulations,” Gunderson said. “We know the industry, our system, and the competition in the area.”

As a Franchise Developer, for example, Friedrich says her biggest motivator is helping others achieve the entrepreneurial success she has achieved. 

“That is one of the things that really sets us apart from other brands,” she said. “Express is standing right alongside our franchisees — as developers, our goal is to give them daily support in any facet of the business. When franchisees purchase an Express franchise, a lot of times they come to it with one specific skill set. As a developer, my job is to help them with all areas of the business.”

For prospective owners worried about California’s expensive real estate market, Express’s real estate strategy is tailored to keep initial investment and operating expenses low, focusing on mid-tier retail centers or business parks that offer accessibility without the need for prime location premiums. 

“They’re going to need at least 1,000 square feet,” Gunderson said. “If you’re going into a higher overhead area, you can usually manage to find office space for 1,000 to 1,200 square feet. As long as they have some parking, accessibility and are near public transportation, it’s ideal. We’re going to support them with that. We know what to look for to keep their overhead under control.”

Why Now Is the Time to Franchise with Express in California

With several territories available in key markets such as the Bay Area, Santa Barbara, LA County, Orange County and San Diego, Express is on the lookout for the right franchisee candidates to lead these territories to success. The team is hoping to add four or five new franchisees in California per year. 

Express’ approach to market capacity ensures that each new franchise is positioned for maximum impact and sustainability. This careful selection process includes a deep dive into local demographics, business counts and job sectors.

Additionally, Friedrich notes that there are several resale offices that are becoming available in California due to a change in leadership or owners looking to retire. 

“There are a lot of great opportunities in this state to purchase an office that already has a reputation in the market,” Friedrich said. “We also have some open territories in California that are surrounded by other franchisees. Overall, the Express brand is very strong in California, and our offices do a wonderful job in the state.”

Looking ahead, Express Employment Professionals remains focused on delivering exceptional service, expanding its reach and solidifying its position as a leading staffing franchise with the goal of putting one million people to work.

The initial investment ranges from $132,000 to $213,000 to open an Express single traditional model, with a franchise fee of $40,000. For territories open more than 24 months, average sales in 2023 were $5,979,665. For territories open more than 60 months, average sales in 2023 were $6,421,874. First-year offices averaged $1,346,028 annual sales according to Item 19 in the Franchise Disclosure Document (FDD) This statement is for information purposes only and is not intended as an offer to sell or the solicitation of an offer to buy a franchise.

To find out more information on the costs to buy this franchise, please visit: https://1851franchise.com/expressemployment/info.