Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Home Instead Franchise Costs (2017 FDD)

by Franchise Chatter on June 30, 2013

in Franchise Costs, Senior Home Care Franchises



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Home Instead Senior Care LogoThis post was updated on July 30, 2017 to reflect information from Home Instead’s 2017 FDD (Item 7).

Detailed Estimates of Home Instead Franchise Costs Based on Item 7 (Estimated Initial Investment) of Home Instead’s 2017 Franchise Disclosure Document

1.  Initial Fee:  $55,000

  • Home Instead does not finance any of this fee.

2.  Training and Living Expenses While Training:  $500 to $1,000

3.  Real Estate and Expenses:  $700 to $3,000

  • 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 to 800 square feet (the “Office”). Rent is estimated to be $8,400 to $36,000 annually depending on size, condition, and location of leased premises.

4.  Equipment:  $3,000 to $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.

5.  Signs:  $100 to $750

6.  Miscellaneous Opening Costs, Including Insurance Deposit:  $5,000 to $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, theft of client’s property crime coverage, workers’ compensation, and any other insurance required by statute or state law.
  • These policies must name Home Instead as an additional insured and you must provide proof of having secured this insurance before the commencement of your Franchised Business.
  • 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.

7.  Inventory:  $100 to $500

  • Exhibit E of the 2017 Franchise Disclosure Document details a list of items included with the franchise fee. You will, however, need to obtain an inventory of basic office supplies.

8.  Advertising – 3 Months:  $500 to $800

9.  First Year Working Capital:  $40,000 to $45,000

10.  Additional Funds – 3 Months:  $4,000 to $6,000

  • This is an estimate of the cost of your initial start-up expenses for the first three months after you open your business. 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.

11.  Total:  $108,900 to $124,910

  • This total estimated initial investment is an estimate based on Home Instead’s experience to date.
  • There may be exceptions in your area that could cause the initial investment to exceed Home Instead’s estimate. This will depend on numerous circumstances, including, without limitation, market conditions, fluctuations in cost of equipment, technology costs, and your selection of products, services, and vendors.
  • None of the estimated initial investment expenses that you incur are likely to be refunded.
  • The franchisor has relied on its experience in operating Home Instead Senior Care business offices in Omaha, NE; Abilene, TX; and Phoenix, AZ, and the experience of its franchisees to compile these estimates.


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