This post was updated on December 13, 2016 to reflect information from Always Best Care Senior Services’ 2016 FDD (Item 7).
Detailed Estimates of Always Best Care Senior Services Franchise Costs Based on Item 7 (Estimated Initial Investment) of Always Best Care’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $44,900
- This figure does not include a potential discount for veterans or minorities.
2. Travel and Other Expenses While Training: $1,000 to $3,000
- The franchisor provides its initial training program to 2 people at no additional charge, but you must pay for your trainees’ expenses while attending training. These expenses include travel, lodging, meals, and wages.
- The low end of the estimate assumes that you are within driving distance of the training facility. The high end of the estimate assumes that additional travel will be needed.
3. Rent – 3 Months: $1,500 to $3,000
- You will need approximately 500 to 1,250 square feet initially.
- Lease costs will vary based upon square footage, cost per square foot, and required maintenance costs.
- The franchisor assumes the landlord will require the first month’s rent and a security deposit equal to 1 month’s rent.
4. Leasehold Improvements: $0 to $3,000
- There may be minor improvements/remodeling of the location which you rent.
- The franchisor has not included an estimate for any major leasehold improvements.
5. Furniture and Fixtures: $0 to $1,500
- You may need to purchase typical office equipment, like a desk, chair, filing cabinets, and fax machine.
6. Signage: $0 to $500
- You may need to purchase some signage for your Business. The franchisor’s specifications for your signage will be included in the confidential Operations Manual.
7. Office Equipment: $1,000 to $7,000
- The office equipment you will need includes a phone system, cell phone, and paper shredder.
8. Insurance – Full Year Premium: $3,000 to $6,500
- You may pay your premiums monthly, quarterly, or semi-annually.
9. Miscellaneous Opening Costs: $200 to $1,000
- This estimate includes other deposits, utility costs, telephone, Internet, and communication costs.
10. Grand Opening Inventory: $0 to $500
- This estimate is for any additional office supplies you may need.
11. Advertising: $1,500
- You must spend at a minimum this amount on advertising and promotion for your Business before opening and during the first 3 months of operation. Any advertising you wish to use must be first approved by the franchisor.
12. Computer Equipment, Software, and Printer: $1,000 to $5,000
- You must purchase the computer equipment the franchisor specifies. The specifications for your computer equipment will be included in the confidential Operations Manual.
13. Permits/Licenses: $125 to $18,000
- This is the estimated cost of the permits and licenses that you must have in order to operate your Business, and the costs may vary greatly depending on your state’s requirements. Each state establishes its own licensing requirements, and those requirements may change.
14. Professional Fees: $2,500 to $5,000
- The franchisor strongly recommends that you retain an attorney to advise you on this franchise offering. You may also wish to retain an accountant to help you evaluate this franchise offering.
- If you choose to form an entity to own the franchise, you may incur additional fees that the franchisor cannot estimate.
15. Additional Funds – 3 Months: $7,000 to $14,000
- These amounts are the minimum recommended levels to cover operating expenses, including employees’ salaries for the start-up phase of the business, which the franchisor calculates will be 3 months. However, the franchisor cannot guarantee that this amount will be sufficient.
16. Total: $63,725 to $114,400
- In compiling this chart, the franchisor relied on the experience of its officers. The amounts do not cover a salary for you, or debt service payments.