Home Instead Franchise Cost & Fees

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Description

Year Business Began: 1994 Franchising Since: 1995Headquarters: Omaha, NebraskaEstimated Number of Units: 1,130 Franchise Description: Home Instead, Inc. is the franchisor. The franchisor franchises the operation of a business providing home care services for seniors such as companionship, personal and specialized services, including hospice and Alzheimer’s care for seniors utilizing its formats, systems, standards and procedures and identified by certain trademarks, domain names, service marks and other commercial symbols. Training Overview: The franchise training program must be successfully completed by franchisees and/or by their manager and is conducted in Omaha, Nebraska or at another location. During the initial training program, the franchisor will arrange and pay for up to 5 nights of hotel accommodations for the franchisee and the other person attending the initial training program. Franchisees must attend and successfully complete the initial training program and open their franchised business within 30 days after the date of the Franchise Agreement. During the first six months of operation of the Franchised Business, the franchisor will spend a minimum of one day at the franchisee’s office to provide ongoing operations support and assistance. The franchisor will schedule national and other meetings periodically throughout the term of the Franchise Agreement for franchisees. Territory Granted: Franchisees are granted the right to operate a Franchised Business within a defined geographic area with an estimated minimum population of 10,000 people over the age of 65 years. The Exclusive Area will be defined in reference to a municipality, portion of a municipality, county or metropolitan statistical area or defined by a map. The franchisor will not license the right to another franchisee to open and operate a Home Instead Senior Care business nor will it operate a Home Instead Senior Care business within the Exclusive Area. Franchisees are prohibited from soliciting or from providing services to customers outside their Exclusive Area except as authorized.Obligations and Restrictions: The franchisor requires that either franchisees personally supervise the Franchised Business or they or their corporation, partnership or limited liability company must employ a manager who must be responsible for the full-time on-premises supervision of the business and who has successfully completed the Home Instead Senior Care initial training program. The franchisor may require the manager to have an ownership interest in a corporation, partnership or limited liability company which owns the franchise. All members of the franchisee’s immediate family and the immediate family of the owners/partners are bound by all confidentiality and non-competition covenants of the agreement, whether or not they are involved in the operation of the Franchised Business. Franchisees may only offer and provide services within the scope of the Approved Services. Approved Services will include companionship services, home helper services, personal care and any other specialized services, as determined and defined by the franchisor unless otherwise provided in the Operations Manual.Term of Agreement and Renewal: The term of Franchise Agreement is 10 years. The right to renew is subject to conditions and to the discretionary approval of the franchisor. If franchisees are in good standing, they may be granted the right to renew for a term granted under the then-current form of the standard Franchise Agreement.Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. Investment Tables: Initial Investment Name of Fee Low High Initial Fee $55,000 $55,000 ClearCare Software – 3 months $0 $360 Training and Living Expenses while Training $500 $1,000 Real Estate & Expenses $700 $3,000 Equipment $3,000 $5,000 Signs $100 $750 Miscellaneous Opening Costs including insurance deposit $5,000 $7,500 Inventory $100 $500 Advertising – 3 months $500 $800 First Year Working Capital $40,000 $45,000 Additional Funds – 3 months $4,000 $6,000 ESTIMATED TOTAL  $108,900 $124,910 Other Fees Type of Fee Amount Royalty Fee 5% of Gross Sales. Initial Training Fee $0 Initial Training for Additional Persons:1 person, no hotel1 person, 1 hotel room2 persons, no hotel room2 persons, 1 hotel room2 persons, 2 hotel rooms $1,000$1,500$2,000$2,500$3,000 Supplemental Training at the Office $500 a day plus expenses. Transfer Fee $15,000 Audit Fee Cost of audit, including travel expenses, compensation of employee(s), plus interest on amount of underpayment Renewal Fee $10,000 Addition of a Principal Fee$5,000 Marketing Fund Up to 2% of monthly Gross Sales. Interest Fee Prime commercial rate plus 3% as reported by the Wall Street Journal (Midwestern edition), but no less than 12% per year. Insurance Cost of insurance. Costs and Attorneys’ Fees Will vary under the circumstances. Indemnification Will vary under the circumstances. The above information has been taken from the FDD of Home instead. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Royalty Fee 5% of Gross Sales.
Initial Training Fee $0
Initial Training for Additional Persons:
1 person, no hotel
1 person, 1 hotel room
2 persons, no hotel room
2 persons, 1 hotel room
2 persons, 2 hotel rooms
$1,000
$1,500
$2,000
$2,500
$3,000
Supplemental Training at the Office $500 a day plus expenses.
Transfer Fee $15,000
Audit Fee Cost of audit, including travel expenses, compensation of employee(s), plus interest on amount of underpayment
Renewal Fee $10,000
Addition of a Principal Fee $5,000
Marketing Fund Up to 2% of monthly Gross Sales.
Interest Fee Prime commercial rate plus 3% as reported by the Wall Street Journal (Midwestern edition), but no less than 12% per year.
Insurance Cost of insurance.
Costs and Attorneys’ Fees Will vary under the circumstances.
Indemnification Will vary under the circumstances.