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). Estimated payback in 0.9 years.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one NEXTAFF unit return on the cash you put in?
Unlevered ROIC · per unit
136%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 NEXTAFF units return on equity?
Equity IRR · 5-yr
39.4%
5.27× MOIC
Year-1 DSCR
2.14×
EBITDA ÷ debt service
Equity required
$3.7M
on $12.4M purchase
Total debt
$8.7M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 57 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
NEXTAFF · FDD (2025) PDF