This special FDD Talk series will highlight the financial performance representations of 13 Senior Care franchises, with a cross-analysis of the featured franchises to be published at the end of the series.
Highlights of Always Best Care’s Item 19 Financial Performance Representations (2012 FDD)
- The company offers 2 franchises. The first is a franchise for the operation of a business that will provide the public with non-medical in-home personal care, skilled in-home nursing services, and assisted living/residential care placement services, using the company’s distinctive system under their Proprietary Mark “Always Best Care Senior Services.”
- The second franchise is an Area Representative franchise which authorizes Area Representatives to recruit Always Best Care franchisees and to provide training and support to them using the company’s policies and procedures. The company pays Area Representatives a portion of the fees they collect from franchisees in their Territory.
- Franchisees who qualify may sign a Developer Agreement, which authorizes them to enter into 2 or more franchise agreements within a Development Area. To retain the right to acquire more franchises, a Developer must satisfy a development schedule.
- Developers will pay a non-refundable Development Fee equal to $39,500 for the 1st franchise to be developed and $26,500 for each additional franchise agreement when they sign a Developer Agreement. They will not pay Initial Franchise Fees.
- The total investment necessary to begin operation of an Always Best Care Senior Services franchise is $50,925 to $98,700. This includes $39,500 that must be paid to the franchisor.
- The total investment necessary to begin operation of an Always Best Care Area Representative franchise is $168,710 to $1,080,710. This includes an area representative fee of $150,000 or more that must be paid to the franchisor and will be equal to 6 cents per person, with a minimum of 2,500,000 people in each territory. Based on a population of 2,500,000, the area representative fee would be $150,000.
Average Net Billings of Franchised Always Best Care Senior Services Businesses
- The information contained in this section is based upon all franchisees of the franchisor that met the “Time in Business” criterion as of December 31, 2011. It does not include franchises terminated in 2011.
- Net Billings means the total of all revenues from the operation of each franchisee’s business, whether received in cash, in kind, from barter and/or exchange, on credit (whether or not payment is received therefore), or otherwise.
- Net Billings does not include the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to clients, if these taxes are separately stated when the client is charged and if these taxes are paid to the appropriate taxing authority.
- In addition, Net Billings does not include the amount of any documented refunds, charge backs, credits, and allowances given in good faith to clients by a franchisee.
- A franchisee’s business may contain between 1 and 4 Assigned Areas.