Busting Common Staffing Franchise Misconceptions

If you’ve spent any time dreaming of opening your own business and researching franchise businesses as one way to make that dream happen, you may have run into some franchise startup information that is giving you pause:

• That the franchising cost of your preferred brand is out of reach
• That you must have experience to franchise
• That starting a small business during a recession isn’t a good idea

While it’s true that some franchises require more startup costs than others, and some do require industry experience before they’ll entrust you with their brand, that’s not the case for every franchise, including Spherion Staffing. We’re proud of our low franchise fee and inclusive business model that welcomes franchisees from dozens of academic and experiential backgrounds. And while we can’t control the economic weather, we have the experience, tools and resources to bring every aspiring business owner through the storms and out the other side. 

One such tool is knowledge that busts these common franchising myths: that franchising is always expensive; franchise candidates must have prior industry experience; and business ownership isn’t viable during tough economic times. As a flagship franchising brand with more than 75 years of experience in staffing and recruiting, we know a thing or two about successful business ownership in the staffing industry. Let’s debunk these franchise myths that may be raining on your research into franchise opportunities. 

Myth #1: Franchising is Always Expensive 

There is an investment associated with opening a franchise that varies from concept to concept. However, many franchises, including Spherion, offer a lower franchise fee and minimal starting costs compared to more material-intensive businesses. Spherion’s General Staffing investment ranges from $143,100 to $242,700. Ask our average franchisee if that’s worth the earning potential, and they’ll offer a resounding yes: Our average franchise location generated $7.4 million in gross revenue and $1.6 million in gross profit in 2021.* 

Still unsure if you can afford a staffing franchise? Spherion offers in-house financing options for qualified candidates as well as discounts for military veterans, members of recognized minority groups, and entrepreneurs with previous staffing experience. Plus, with plenty of online and in-person training from contract signing to opening and beyond, including business operations training, legal services, back-office functionality and marketing, you’ll see a quicker return on investment with a Spherion franchise. We know you’ve worked hard to build your assets, and we’re eager to help you make the most of them through a successful franchise venture.

Myth #2: You Must Have Previous Industry Experience 

Another common misconception about owning a franchise is that you must have previous experience in the industry in which you’re looking to franchise. While there are certainly some franchising industries that require previous related experience, staffing only requires the ability to stay organized, the desire to put in the work that business growth requires, and the emotional intelligence to deftly manage a variety of personalities and ambitions among the communities you’ll serve. 

Spherion’s franchisees come from a diverse set of academic and real-world backgrounds. While we look for some business experience in our franchisee candidates, our corporate team offers comprehensive training and support to tune each individual’s business skills to the nuances of staffing and recruiting. For our professional/technology staffing franchises, we do require proven subject matter expertise. 

On the plus side, virtually everyone who franchises with Spherion has at least a passing familiarity with the staffing industry by virtue of having applied for and landed a job in the past. Remember what it was like getting that job you really wanted—how you researched the company, updated your resume, prepared for your interview, and showed up ready to work? If you do, you have staffing industry experience and you’re already on your way to becoming a successful Spherion franchisee! That familiarity means that franchising with Spherion requires less of an industry learning curve. While previous staffing experience is certainly beneficial, it’s not required to run a successful Spherion franchise.

Myth #3: Business Ownership Isn’t Viable During Times of Recession 

One of the most worrisome franchising questions candidates ask is whether or not franchising is viable during times of rising costs and inflation. It is! Franchising blends the stability of a proven industry brand with the autonomy of being an independent business owner. Many businesses that offer a weak product or service fade away over time, and recessions can speed up their downfall. But truly strong offerings, such as the staffing and recruiting services Spherion has fine-tuned over 76 years and 12 U.S. recessions (including two pandemics!), survive. Businesses will always need labor, and Spherion knows how to help them staff in sustainable ways that promote growth no matter the economic barometer.

Furthermore, starting a franchise during an uncertain economic period forces business owners to become more efficient at decision-making and aware of how to best manage their resources. Sure, “trial by fire” might not be the way you envision sharpening your business management skills, but it is effective; just ask our franchisees who opened their doors before the 2020 pandemic began. Plus, Spherion’s ongoing training opportunities for recruiters, salespeople, and franchisees means our community has the freedom to make decisions that make sense for their market with the safety net of our corporate-wide resources. 

Sometimes, just taking action in an economic downturn puts you ahead of the competition. Many businesses pull back on actions like investments in business infrastructure, staff training, advertising or systems upgrades. Spherion isn’t immune to necessary adjustments needed to survive a recession or weather an adverse impact. But we make every effort to continue investing in our franchise community to blunt any adverse economic impacts. Then, when inflation slows down and the economy starts growing again—which it always does—you and your business will grow along with it.

Especially during these inflationary times, franchising offers candidates the opportunity to run their own business at a reduced risk compared to starting completely from scratch. With Spherion, a brand with 75+ years of experience in filling roles for clients across a variety of fields, new franchisees are able to lean on the expertise of a brand that has seen it all in the staffing world. 

Not a Myth: Our Passion to Help Our Franchisees Succeed

Spherion won’t be the only concept to tell you that franchising offers an enhanced level of security for growing a business during times of economic uncertainty. But we are one of a few with a decades-long history of backing up that claim with visible growth and strategic investments in our franchisees and their businesses. We’re huge advocates for the benefits of franchising for aspiring business owners with a desire to succeed and the drive to do it. 

If you’re still unsure about franchising with Spherion in the coming months, reach out to a member of our franchising team for a reassuring chat about why Spherion Staffing offers a clear vision and a sunny business opportunity in all kinds of economic weather. 

*This data is based on 56 franchisees that were open and operating for at least one full year as of 12/31/21. 14 of the 56 franchisees (25%) surpassed the average annual revenue stated above, and 24 of the 56 franchisees (42.9%) surpassed the average annual gross profit stated above. Your individual results may differ. There is no assurance that other franchisees will earn as much. Please review Item 19 of our FDD for more information.