Nextaff Franchise Cost, Revenue & Review 2026
- Investment
- $124K – $159K
- Disclosed sales
- $2.1M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
NEXTAFF is a staffing franchise placing light-industrial, clerical, and skilled workers with local employers. Franchisees run staffing offices, sourcing and screening candidates and managing placements and payroll.
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $124K – $159K
- 43rd pct Business Serv…
- Avg gross sales
- $2.1M
- Incl. company outlets16th pct Business Serv…
- Royalty
- 9.0%
- 40th pct Business Serv…
- Units
- 31
- 28th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $124K – $159K including a $49K franchise fee, 9.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.1M/year (median $1.5M) (includes company-owned outlets). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHNegative: net -3 franchised outlets in the latest year (4 opened, 8 closed); 4 signed but not yet open (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Nextaff Group, LLC
- Predecessor
- Nextaff, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Cary T. Daniel
- Incorporated in
- KS
- HQ
- 11101 Switzer Road, Suite 110, Overland Park, KS 66210
- Auditor
- Jones, Nale & Mattingly PLC
- Audited financials
- Franchisor revenue
- $49.3M
- Most recent fiscal year
Overview
About
- CEO
- Cary T. Daniel
- Headquarters
- KS
- Founded
- 2002
- FDD year
- 2025
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost is about typical for a business services franchise (near the category median).
Source: FDD 2025 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $124K – $159K
- Middle of category vs category
- Liquid capital req'd
- $49K – $62K
- Middle of category vs category
- Franchise fee
- $49K – $49K
- Top 40% of category vs category
- Royalty
- 9.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% |
| Marketing / ad fund | 1.0% |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 201% above the business services norm.
Includes company-owned outlets
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for NEXTAFF until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$197K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one NEXTAFF unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $1.5M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Revenue (Traditional) and Gross Wages, Gross Profit also disclosed
- Sample size
- 16 outlets
- vs category median 37 · small
- Range (low → high)
- $243K→$5.3MCited, not corroborated — printed on page 53 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $451K→$4.6M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is 14.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.1M/year in gross sales. Median is $1.5M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 14.6x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 10.0% (near the Business Services median).
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -12.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Nextaff Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 4
- Last reporting year
- Closed
- 8
- Turnover rate
- 17.9%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Net growth (3-yr)
- -12.5%
- Net unit change over 3 years
- 3-yr CAGR
- -12.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 4
- 0.13 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 19 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
19
states with franchisees (per FDD Item 12)
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Jones, Nale & Mattingly PLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2023 audited statements (year ended December 31, 2023; only single-year statements present despite Item 21 referencing 2024/2023/2022). Revenues comprise staffing revenues $46,822,540, royalty fees $2,226,764, franchise fees $237,333. Other income $2,215,017 plus interest income $92,436.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01MEDUnit count declined 9.7% YoY (31 units) — indicates shrinking franchise system and potential franchisee churn
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 60 mi |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Overland Park, KS |
| Jury trial waiver | No |
| Governing law | KS |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 50 hrs
- Training location
- Overland Park, KS and franchisee location
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Mutual (franchisor must approve)
- Franchisor financing
- Offered
- Item 10
- POS system
- Avionte
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Avionte
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns NEXTAFF?
NEXTAFF is franchised by Nextaff Group, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the NEXTAFF FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the NEXTAFF FDD and qualifies whose outlets they describe.
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 28 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 B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.