Franchising emerges as logical next step for
$150 million Ultimate Staffing Services

In a significant strategic move for an unstoppable company, $151 million industry leader Ultimate Staffing Services, which operates 50 corporate offices nationwide, announced it will begin offering franchise opportunities in a choice of major markets and prime territories throughout the United States.

"We're announcing a franchising program that is, in one sense, a ground floor opportunity, yet our ground floor is halfway up the ladder already," said Ultimate Staffing Services founder and CEO Ben Roth, whose experience in the staffing industry spans more than 22 years. "Ultimate Staffing franchisees will have the backing of a multi-million dollar industry leader that already operates 50 successful offices. This is a rare opportunity for ambitious entrepreneurs to select their first choice in exclusive territories and be among our initial group of franchise owners."

The decision to begin franchising represents a culmination of the award-winning pathways, systems and strategies that Ultimate Staffing has used to propel to its position as the preeminent staffing services company in this country. Founded in 1994, Ultimate Staffing, which specializes in clerical, administration, call center, logistics and light industrial staffing, has received national accolades for constantly setting new industry standards with ingenuity and commitment to excellence.

In 1999, it was singled out by Inc. Magazine as the No. 1 fastest-growing privately held company in America, with more than 20,332 percent growth between 1994 and 1998. Ultimate Staffing also received the Eureka Award for Performance Excellence from the California Council for Excellence, acknowledging its successful alignment with the Malcolm Baldrige criteria for performance excellence.

Roth, who was named Ernst & Young's Entrepreneur of the Year in 1999 for his creative reinvention of traditional staffing industry approaches, said his decision to franchise was the next logical step in the company's evolution. The move was based on the existence of a solid platform for franchisees to excel and a desire to add more entrepreneurial spirit to the company's blueprint for success.

"Ultimate Staffing franchisees will be equipped with the same tools that drove the company to reach the `ultimate' success level as the industry leader," Roth said. "This is the window right now for prime markets. We are looking for people who are thirsty to spread their wings and be their own boss with the guidance of a strong business partner."

To insure his commitment to franchising, Roth has hired Gerry Rhydderch, a noted staffing industry franchising veteran, to head up Ultimate's franchising program. In addition to spearheading the franchising efforts for one of the oldest and largest staffing companies in the United States, Rhydderch also launched a franchising program from the ground floor for one of the more successful franchise systems in the staffing industry. In this role, he is credited with recruiting and negotiating more than 130 quality franchisees who developed more than 200 offices.

The `Ultimate' difference

Rhydderch points to several factors that differentiate Ultimate Staffing from the pack:

Deeply-rooted, people-centered values. Ultimate Staffing holds steadfast to its Mission, Vision and Values Philosophy detailed in its "Preeminent Path and its Fifteen Principles." As part of his vision to deliver the highest level of quality to customers, Roth focused on the staffing associates and meeting their needs, accurately deducing that they in turn would have a higher commitment to excellence and productivity. In essence, rather than following the traditional paradigm of putting the customer first, he put the emphasis on the staffing associates. To accomplish this, Roth took the approach of treating temporary employees like full-time employees through a unique package of benefits, including guaranteed salaries for premiere staffing associates, bonus plans, recognition programs, medical benefits and holiday pay. Thus, Ultimate's theme became "enhancing the lives of the people we serve."

Pioneer of on-site staff management concept. Roth, known as the father of vendor-on-premises, created the concept of working in partnership with clients on their premises to manage flexible groups of contingent workers. In fact, his "Ultimate On-Premise" program has proved so successful that virtually every other staffing company over the next decade copied it. Today, his concept of essentially becoming an extension of the customer's human resource department has proliferated through the industry and is recognized as the best way to maximize quality, improve service and reduce costs for customers throughout the United States.

Cutting-edge vendor management technology. To add further value and reduce costs for the customer, Ultimate developed an industry-leading process management system. EnhansisTM Process Management System has emerged as one of the leading workforce management systems for customers who spend more than $1 million annually on contingent staffing. The web-based technology provides customers with control, convenience and cost savings. Capabilities include online ordering that channels customers to the proper approval process and a tracking mechanism that documents each worker, project and dollar spent so that customers can have immediate, consolidated, real-time information and the ultimate control.

Triple the appeal
Augmenting the franchisee's potential for success are strong projections for growth within the staffing industry and multiple revenue streams available through Ultimate Staffing Franchise Group. The staffing industry has exploded since 1995 with 150 percent growth in annual revenues to $55 billion. Experts predict industry revenues to reach $100 billion by 2010. To best capitalize on this sector's opportunity, Ultimate has established three key revenue streams for franchisees. These result from placing staffing associates on temporary assignment, fees associated with direct hire placement services and fees derived when customers convert temporary associates to full-time employees.

The Ultimate Staffing franchise fee is $17,500, with start-up costs of $30,000 to $40,000 (financing available) and working capital of $50,000 to $100,000 depending on the territory. Ultimate Staffing funds the temporary associate payroll each week. Franchisees pay a continuing fee based on a percentage of the gross profit of the business, which reduces as their gross profit increases. According to Rhydderch, the share of the gross profit paid to the franchisee is among the highest in the staffing franchise segment, as much as 75 percent.

"This is an outstanding opportunity for entrepreneurs who have the vision and desire to reach their financial goals by building an independent prosperous business, yet with the support and guidance of an extremely successful company," Roth said. "In addition to the unparalleled gratification of creating your own business, there is a wonderful satisfaction derived from knowing that your success directly correlates to your ability to deliver great service to others as prescribed by Ultimate's vision. Everyone wins."