Express Personnel celebrates arrival in exclusive club

News - Personnel and Staffing Franchises
The Chicago suburb of Northbrook, Ill., may be an unlikely locale for an Oklahoma company to celebrate. But not for Express Personnel Services. Employees at the company's international headquarters in Oklahoma City enjoyed a cookout last week to celebrate the 500th franchise milestone in Northbrook. In the week since, Express has added more locations, with the 507th coming Tuesday in the Dover/Rochester area of New Hampshire.

"One of the reasons I think our system works is that people in my department are the experts in franchise support," said Nikki Gahr Sells, vice president for franchising. "Then the field people are staffing experts. When you put the two together, you have a really good team."

Terry Hill, a spokesman for the International Franchise Association, said just 150 or so franchised systems out of more than 1,000 have reached the 500-unit milestone.

"They're getting into some very good company there," Hill said. "Express has done well for a number of years, but once you start getting up into 500 and above units, it's obvious you're doing something right in the franchise sector. They've found their niche and are doing it well."

The job market slowed considerably in 2001 and 2002, but Express continued its growth, managing to add 31 locations in 2003. It added 58 last year and is on track to open 70 offices in 2005, Sells said.

Domestically, Express has offices in 47 states. The biggest growth areas for Express in the past five years have been Texas, Pennsylvania, Michigan, Kansas, Florida and Georgia, Sells said. Future growth areas include Missouri and California.

"It's not only large cities, we're also doing extremely well in smaller, rural markets," Sells said. "Our concept can really span any market size because it's all about people."

Growth hasn't just been in the field, though. Express has beefed up its support staff in Oklahoma City by 25 percent in the last year to assist new franchisees. That has meant more jobs in areas such as information technology, payroll and risk management.

Although it's a small slice of the new franchisees -- just three so far in 2005 -- Sells said conversions are a growth area. Single-location staffing firms often find it hard to compete with little or no support for back-office functions or a peer network. Express actively seeks out those independents who want to be part of something bigger, Sells said. Not that the company awards franchises to just anyone who can raise the estimated $130,000 to $160,000 to open an office.

"We have a special culture," Sells said. "We want to protect that, and we are very picky about who we bring in."

To that end, Express hosts a weekly "Discovery Day," the last chance to see whether a potential franchisee and the company are the best matches. Express brings in franchisee candidates to Oklahoma City for one last interview before all the paperwork is signed. Sells said those days are crucial to keeping the company's culture strong amid expansion.

She points to the aftermath of the recent Gulf Coast hurricanes as an example. Franchises in devastated areas received help from others in the region, and the support personnel from headquarters are rotating in and out of the areas to help rebuild the franchises and the local communities

"Our franchises are always willing to help out each other," Sells said.

The International Franchise Association's Hill said Express has been smart about its growth. Too often, successful franchisors succumb to the temptation to grow too fast.

"It's sort of like a military operation where you can't outrun your supply line," Hill said. "They've always been exceptional in taking care of their franchisees and measuring their growth to make sure they're doing the right thing by their franchisees, supporting them through the process."

While Sells won't speculate on when Express could reach 1,000 franchised locations, she did say the more immediate goal is to reach 700.

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