Detailed Estimates of Home Instead Franchise Costs Based on Item 7 (Estimated Initial Investment) of Home Instead’s 2013 Franchise Disclosure Document
1. Initial Fee: $44,000
- Home Instead does not finance any of this fee.
2. A.C.E.S. Software License: $784/user ($3,920 for up to 5 users)
3. Training and Living Expenses while Training: $500 – $1,000
- If you do not own adequate office space, you must lease adequate office space. Typical locations are in office park settings. A typical Franchised Business includes 500-800 square feet. Rent is estimated to be $4,800 to $24,000 annually depending on size, condition, and location of leased premises.
5. Equipment: $3,000 – $5,000
- This amount may be necessary to purchase a TV, facsimile machine, computer hardware consisting of either a laptop or desktop computer, software, office furniture, decorations, fixtures, and incidental supplies.
6. Signs: $50 – $750
7. Miscellaneous Opening Costs, Including Insurance Deposit: $4,550 – $7,500
- This amount includes security deposits, utilities, business license, incorporation or applicable legal fees, and an insurance deposit.
- Required insurance policies include comprehensive general liability, including automobile liability, third party fidelity bond coverage, workers’ compensation, and any other insurance required by statute or state law.
- The estimated cost for all insurance during the first year of operation is $12,000 to $15,000, which includes the cost of workers’ compensation.
- Insurance costs vary from state to state. Workers’ compensation rates are based on a percentage of estimated first year payroll. Many states will charge between $3 to $12 per $100 in payroll. A few states are higher, such as California.
8. Inventory: $50 – $500
9. Advertising – 3 Months: $500 – $800
10. Additional Funds – 3 Months: $2,500 – $7,000
- This estimates your initial start-up expenses. These expenses include payroll costs and may not include an owner’s salary. These figures are estimates and Home Instead cannot guarantee that you will not have additional expenses starting the business.
- Your costs will depend on how much you follow Home Instead’s methods and procedures, your management skills, experience, and business acumen, local economic conditions, the local market for the service, the prevailing wage rate, competition, and the sales level reached during the initial period.
11. Total: $56,334 – $72,470
- This total estimated initial investment has been based on Home Instead’s experience to date. The range has been provided because expenses may vary based on whether or not you need to lease office space.
- The total estimated initial investment is an estimate. There may be exceptions in your area that could increase the initial investment other than as the company has estimated. This will depend on numerous circumstances, including, without limitation, market conditions, fluctuations in cost of equipment, and your selection of products, services, and vendors.
- None of these expenses are likely to be refunded.
- The franchisor has relied on its experience in operating a Home Instead Senior Care business office in Omaha, Nebraska and the experience of its franchisees to compile these estimates.