Franchisel.com — FDD Diligence Memo
Express Employment Professionals
Generated 2026-04-06 · 2026 FDD · Government-filed source
Express Employment Professionals
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Change
-3
Red Flags & Key Signals
Net unit loss of -21 in reporting period. Declining networks may signal franchisee dissatisfaction or weak economics.
Item 2 shows multiple executives hired within 2 years of this FDD filing. Leadership instability can affect franchisee support quality during transitions.
Avg $999,949 from government-filed FDD. Transparent disclosure is a positive signal.
At least one key executive has disclosed prior franchise system experience — associated with better franchisee support and system discipline.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $999,949 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure. The average ($999,949) is below the median ($14,056,528), which is unusual and may indicate a few very low-revenue units dragging the average down.
Item 20 — System Health
Item 20 — 2026 FDDSystem contracting — net -21 units in reporting period.
↓ Contracting21 more units closed or left the system than opened.
Total Units
0
Net Growth
-21
Turnover
0%
Year-over-Year Trends
2025 → 2026 FDD2025 FDD
$1,098,880
2026 FDD (Current)
$999,949
Opened
+0
Closed
-0
Net
-21
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Gross sales
Figure represents gross sales — standard basis for cross-brand comparison.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2025)
Revenue figures are from 2025 — recent and relevant.
Average below median (unusual distribution)
The average is below the median, suggesting a few very low-performing units drag the average down.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
Disclosed avg revenue fell 9% from 2025 to 2026. Ask franchisees: what changed in your revenue over this period and what caused it?
Look for: Whether the decline is system-wide or location-specific. COVID recovery lag, competition, or franchisor pricing changes.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected; 10 senior roles identified.
Item 2 · 2026 FDD · confidence: medium
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with WI DFI (file #640459). Source: 640459-2026-Express-Employment-Professionals.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.