NextaffFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A NEXTAFF franchise requires a total initial investment of $124K – $159K, including a $49K franchise fee and an ongoing 9.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.1M[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $124K – $159K
- 36th pct Business Serv…
- Avg gross sales
- $2.1M
- 24th pct Business Serv…
- Royalty
- 9.0%
- 27th pct Business Serv…
- Units
- 31
- 26th pct Business Serv…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 14.6x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 32 to 28 over 3 years. Investigate why operators are leaving.
109% cash-on-cash return (based on Gross Margin). Above the 20% threshold most investors target.
Bottom line
- Total investment $124K – $159K including a $49K franchise fee, 9.0% ongoing royalty.
- Average unit revenue of $2.1M/year (median $1.5M), with an estimated 109% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict F (Bottom Quintile) with a risk score of 78/100.
- System contracting at -12.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- NEXTAFF GROUP, LLC
- Incorporated in
- KS
- HQ
- 11101 Switzer Road, Suite 110, Overland Park, KS 66210
- Auditor
- Jones, Nale & Mattingly PLC
- Audited financials
- Franchisor revenue
- $40.0M
- vs $49.3M prior year
Overview
About
NEXTAFF franchisees operate temporary staffing placement agencies, recruiting and placing light industrial, clerical, and skilled workers with local employers. Day-to-day operations include client acquisition, candidate sourcing and screening, job matching, payroll processing, and ongoing client/employee relationship management. Revenue is generated on a percentage of gross wages paid to placed employees.
- CEO
- Cary T. Daniel
- Headquarters
- KS
- Founded
- 2002
- FDD year
- 2025
- States available
- 19
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $49K | $62K |
| Equipment, build-out, other | $26K | $48K |
| Total initial investment | $124K | $159K |
Source: NEXTAFF 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$269K
13.0% margin
Unlevered ROIC
136%
EBITDA / total invested capital
Payback
9 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $124K – $159K
- Better than avg vs category
- Liquid capital req'd
- $49K – $62K
- Near category avg vs category
- Franchise fee
- $1 – $49K
- Better than avg vs category
- Royalty
- 9.0%
- Gross Wages · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 0.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $1.5M
- Avg gross margin
- $154K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 109.0%
- Based on Gross Margin / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 21 units
- vs category median 32
- Range (low → high)
- $132K→$5.3M
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
Revenue is 14.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Business Services averages
How Nextaff Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 4
- Last reporting year
- Closed
- 8
- Turnover rate
- 25.8%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Net growth (yr3)
- -9.7%
- Net unit change last year
- 3-yr CAGR
- -12.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $62K
- Median loan
- $62K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Nextaff's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
NEXTAFF presents meaningful caution due to declining unit count, lack of financial performance validation, and high fee structure relative to modest profitability claims in a staffing industry with competitive margins.
Audited financials (Item 21)
Yes · Jones, Nale & Mattingly PLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 78 / 100 rating
- 01MEDUnit count declined 9.7% YoY (31 units) — indicates shrinking franchise system and potential franchisee churn
- 02MINORNo Item 19 financial performance disclosure — cannot verify if $154,071 avg net income is achievable or representative
- 03HIGHGoing Concern notation absent but declining units suggest potential financial stress in the system
- 04MINORHigh royalty structure (9% tiered down to 7.5%) on gross wages reduces franchisee profit margins significantly
- 05MINOR$49,000 franchise fee plus $123,887-$158,886 initial investment requires $172,887-$207,886 total capital with unclear ROI timeline
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | Geographic Area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Kansas |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 50 hrs
- POS system
- Avionte
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Avionte
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
NEXTAFF · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a NEXTAFF franchise?
The total investment to open a NEXTAFF franchise ranges from $124K – $159K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do NEXTAFF franchise owners earn?
According to Item 19 of the NEXTAFF FDD, the average gross sales per unit is $2.1M. The median is $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is NEXTAFF's franchise failure rate?
SBA 7(a) loan charge-off data is not available for NEXTAFF (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many NEXTAFF franchise locations are there?
As of their most recent FDD filing, NEXTAFF has 31 total units in the United States, including 32 franchised units and 3 company-owned units. 4 new units were opened in the latest reporting year.
Is NEXTAFF a good franchise to buy?
FranchiseVerdict rates NEXTAFF as a F-grade franchise with a risk score of 78 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.