$84

Business Description

Express Services, Inc. (“We,” “Us,” or “Our”) is the franchisor. We are a Colorado corporation with Our principal place of business at 9701 Boardwalk Blvd., Oklahoma City, Oklahoma 73162. We conduct business under Our corporate name and the trade name “Express Employment Professionals.” We incorporated as Express Temporary Help Service, Inc. on May 26, 1983, in the State of Colorado. On July 14, 1983, We changed Our name to Express Temporary Services, Inc., which later changed to Express Services, Inc. on February 4, 1985.

Prior Experience

Other than the franchises being offered in this Disclosure Document, We do not offer franchises in this or any other line of business, and We are not involved in other business activities.

Business Offered

We offer to enter into a franchise agreement (the “Franchise Agreement”) with qualified entities or persons (“You” or “Your”) that wish to establish and operate an Express Employment Professionals Business. In this Disclosure Document, “You” means the individual or legal entity with whom We enter into a Franchise Agreement. The term “You” also refers to the direct and indirect owners of a corporation, partnership, limited liability company, or limited liability partnership that signs a Franchise Agreement as the “franchisee.” If the franchisee is a corporation, partnership, limited liability company, or limited liability partnership, We will require all owners, shareholders, partners, or members, who have a direct or indirect beneficial interest of more than 5%, to personally sign the guarantee provision in the Franchise Agreement guaranteeing the legal entity’s obligation under the Franchise Agreement. Furthermore, during the term of the Franchise Agreement, and any renewal, We require the principal owner to maintain at least a 51% ownership interest. Under the Franchise Agreement, We will grant You the right and license (the “Franchise”) to use the name Express Employment Professionals and its variations that We approve in writing, and to use other associated names, trade names, trademarks, copyrights, insignia, and service marks as provided for in the Franchise Agreement, and attached to the Franchise Agreement as Exhibit A (the “Proprietary Marks”). The Franchise granted is only and exclusively for the operation of an Express Employment Professionals Business within a boundary line described in the Franchise Agreement (the “Territory”), and for a term of 5 years. You can only operate the Express Employment Professionals Business at and from the location identified in the Franchise Agreement. You may, however, during the term of the Franchise Agreement, open branch offices within the boundary line of Your Territory (“Branch Office”). For each Branch Office, You must enter into a Branch Office Addendum, a form of which is attached to the Franchise Agreement as Exhibit D. In addition, You may also set up recruiting stations (“Recruiting Stations”) within the boundary line of Your Territory by signing a Recruiting Station Addendum, which is attached to the Franchise Agreement as Exhibit E. The Recruiting Stations are temporary in nature. They are set up to supplement Your Express Employment Professionals Business’s recruiting efforts under circumstances such as special skill or worker shortage, special client demands or requirements, seasonal demand or other temporary conditions. You are not allowed to display any signage containing the Proprietary Marks at Your Recruiting Station without Our specific prior written approval. Express has designated some territories, and may designate additional territories, generally located in major metropolitan areas and comprised of higher levels of professional staffing business, as “Professional Staffing Model Markets”. Express has designed a Professional Staffing Model franchise operation to serve these Professional Staffing Model Markets. The Professional Staffing Model is similar to the Traditional Model, but differs from the Traditional Model with respect to training and staffing requirements. The training program for the Professional Staffing Model focuses on sales, recruiting and servicing techniques specific to professional level staffing. Additionally, We require Franchisees operating under the Professional Staffing Model to employ additional staff in compliance with Our minimum staffing requirements. Finally, Franchisees to who We grant a Professional Staffing Model should generally anticipate higher operating costs, partially attributable to operating in a major metropolitan market. There are two kinds of services offered by the Express Employment Professionals Businesses: Flexible Staffing – Temporary/Contract Staffing (“Flexible Staffing”), and Career Placement – Professional Search (“Career Placement”). Your Express Employment Professionals Business must offer Flexible Staffing services. The term “Associates” refer to the persons You send to the client business from the Flexible Staffing portion of the Express Employment Professionals Business. You will have the option, with Our approval, to operate the Career Placement portion of the Express Employment Professionals Business. You must operate the Express Employment Professionals Business in strict compliance with the system, procedures, methods, policies and requirements prescribed in the Manual (as defined below). We will make available to You one copy of the Manual.

Initial Fees

Initial Franchise Fee The initial franchise fee is $35,000, paid in lump sum when You sign the Franchise Agreement. We are a member of the International Franchise Association and participate in the IFA’s VetFran Program, and We offer qualified veterans a 50% reduction in Our initial franchise fee. If the principal owner (51% or more) of a franchise enters into another franchise for a different location as the principal owner, We will also reduce the initial franchise fees as follows: Second Agreement 25% Third Agreement 35% All Additional Agreements 50% If You enter into the Territory Development Agreement with Us, Your initial franchise fee is $84,000. This amount represents the $35,000 initial franchise fee for the first franchise; $26,250 initial franchise fee for the second franchise (25% discount); and $22,750 for the third franchise (35% discount). You must pay the initial franchise fee in full when You sign the Territory Development Agreement. You will not be required to pay any initial franchise fee in connection with Your execution of the additional franchise agreements that You must enter into under the Territory Development Agreement. Your initial franchise fee is used to defray Our costs of obtaining and screening You, training programs, legal expense, development and distribution of suggested interior design and layout specifications, and other support services. When the Agreement is signed, the initial franchise fee (including the initial franchise fee payable in connection with the Territory Development Agreement) is deemed fully earned for Our expenses in furnishing assistance and services to You, and for Our lost or deferred opportunity to license others. The initial franchise fee is not refundable, except as described in the New Franchise Incentive Program and IPP Program above. For clarification, the initial franchise fee You pay Us in connection with the Territory Development Agreement is not refundable even if, for example, You do not begin operating additional businesses in the Additional Territories for any reason. Purchase of the Computer System You are required to purchase all items of the Computer System through Us, for cash or on financing, if We are at that time selling and/or financing these items, as further described in Item 10 below.

Financing

Financing Under the BTO Program As described in Item 1 above, if you qualify for and participate in the BTO program, we will provide financing to you once you sign the Franchise Agreement and the BTO Program Addendum (attached to this Disclosure Document as Exhibit B-1). Other than the financing as described above, and other than paying the Associates You placed under certain terms and conditions, We do not offer direct or indirect financing in connection with Your purchase or operation of the Express Employment Professionals Business, or for any other items. We do not guarantee Your notes, lease, or other obligations.

Franchisee Revenue and Profit

The following information is an historic financial performance representation about the franchise system’s existing franchised units and subsets of those units. The information includes the historic Sales, Gross Receipts and Gross Margin of existing franchised units and subsets of those units. The tables below exclude information on units owned directly or indirectly, in whole or in part, by Robert A. Funk and William H. Stoller (Company-Owned units). Some units have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request. Other than the following financial performance representations, We do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised units/outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If You are purchasing an existing unit/outlet, however, We may provide You with the actual records of that unit/outlet. If You receive any other financial performance information or projections of Your future income, You should report it to the franchisor's management by contacting Diane Carter, 9701 Boardwalk Blvd., Oklahoma City, Oklahoma 73162, 800-652- 6400 ext. 4380, the Federal Trade Commission, and the appropriate state regulatory agencies.