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Considering a Nurse Next Door Franchise? Don’t Overlook These 19 Important Franchise Fees

by Franchise Chatter on April 19, 2017

in Franchise Fees, Senior Home Care Franchises



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Nurse Next Door franchise, don’t get blindsided by these 19 important franchise fees (from the initial franchise fee, to the royalty fee, to 17 other fees found in Items 5 and 6 of Nurse Next Door’s 2017 FDD).

1.  Initial Franchise Fee:  $45,000 to $50,000



  • Nurse Next Door charges a non-recurring initial franchise fee of $50,000 for each unit franchise (the “Initial Franchise Fee”). It reserves the right to increase or decrease the Initial Franchise Fee for any particular territory based upon factors it deems appropriate, including demographics, or to achieve market penetration in certain markets.
  • If you are purchasing two or more territories concurrently, Nurse Next Door offers both a $5,000 discount off the Initial Franchise Fee and a $5,000 online marketing credit for each additional territory.
  • The Initial Franchise Fee is payable at the time of execution of the Franchise Agreement. The Initial Franchise Fee is deemed to be fully earned and is non-refundable in whole or in part (except as provided below) upon execution of the Franchise Agreement.
  • Nurse Next Door may terminate the Franchise Agreement if you fail to:  (i) complete its franchise opener,  “Countdown to Launch,” and your Initial Training Program within 12 weeks following the date of the Franchise Agreement, or at such other date that Nurse Next Door and you may agree in writing, and (ii) open your Franchised Business within 30 days of the completion of Countdown to Launch and your Initial Training Program, provided that you have obtained all certificates or licenses required to operate the Franchised Business (the Start Date).
  • In the event that Nurse Next Door elects to exercise this option to terminate the Franchise Agreement, it will not refund any portion of the Initial Franchise Fee.
  • If, in Nurse Next Door’s reasonable opinion, your participation in Countdown to Launch and the Initial Training Program discloses an inability on your part to adequately manage and operate the Franchised Business, then it may terminate the Franchise Agreement.
  • If it elects to do so for this reason, within 7 days after the effective date of termination, Nurse Next Door will refund your Initial Franchise Fee, less reasonable costs, including without limitation, costs for expenses reasonably incurred by it in connection with the granting of the franchise under the Franchise Agreement, the negotiation and execution of the Franchise Agreement and any other agreement, and the cost of Countdown to Launch and the Initial Training Program.

2.  Deposit:  $5,000

  • Prior to signing a Franchise Agreement, you must pay Nurse Next Door $5,000 as a deposit toward the Initial Franchise Fee (the “Deposit'”). Payment of the Deposit holds a particular territory open for you.
  • If a particular territory has not been identified in the Deposit Agreement, you will have a period of time, not to exceed 6 months, during which a territory may be mutually agreed upon.
  • The Deposit is refundable, less Nurse Next Door’s costs, for a period of 30 days after the date of the Deposit Agreement. However, Nurse Next Door has the discretion to retain the entire Deposit if you have not cooperated with it or if there are other circumstances reasonably justifying retention.
  • If you do not sign a Franchise Agreement with Nurse Next Door and pay the balance of the Initial Franchise Fee and the entire Start-up Technology Fee within 30 days after the date of the Deposit Agreement, the Deposit becomes non-refundable.
  • However, Nurse Next Door may refund the Deposit to you, less its costs, in certain circumstances. For example, if a territory is not mutually agreed upon within the time period specified in the Deposit Agreement and you have been reasonable and cooperative throughout the process of identifying a territory, or if Nurse Next Door withdraws its approval prior to your signing a Franchise Agreement.
  • Nurse Next Door’s costs may include those reasonably incurred by it for meeting with you; for a review of your prospective territory; for obtaining demographic profiles; expenses related to travel, meals, and lodging; and reasonable legal fees and disbursements.
  • If a Franchise Agreement and all other relevant documents are signed by you and Nurse Next Door, the entire Deposit will be applied as payment toward the Initial Franchise Fee.

3.  Option Fee and Exercise Fee:  $10,000

  • Nurse Next Door charges a non-recurring option fee that is typically $10,000 (the “Option Fee”) for each option for additional territory.
  • Nurse Next Door charges a non-recurring exercise fee, in lieu of the Initial Franchise Fee, equal to the difference between the Initial Franchise Fee and the Option Fee (the “Exercise Fee”) under each option agreement for additional territory (the “Option Agreement”).
  • Nurse Next Door reserves the right to increase or decrease the Option Fee and the Exercise Fee for any particular territory based upon factors it deems appropriate.
  • The Option Fee is payable at the time of execution of the Option Agreement. The Exercise Fee is payable at the time you exercise the option. These fees are deemed to be fully earned and are non-refundable in whole or in part (except as provided below) upon execution of the Option Agreement or upon exercising the option, as applicable.
  • You must also pay all fees, including the Technology Start-up Fee, under Nurse Next Door’s then-current Franchise Agreement for the additional territory (which must be signed as a condition to exercising the option), except for the Initial Franchise Fee.
  • If you cannot exercise your option because (i) Nurse Next Door cannot comply with all applicable regulatory requirements, including compliance with state and federal registration and disclosure requirements, (ii) you do not meet Nurse Next Door’s then-current standards for new franchisees in the System or its then-current requirements for a franchisee’s acquisition of additional territory, or (iii) your participation in Countdown to Launch or the Initial Training Program demonstrates, in Nurse Next Door’s reasonable opinion, an inability to adequately manage and operate the Franchised Business and it terminates your Franchise Agreement, then Nurse Next Door will refund the Option Fee less its reasonable costs (as described above under Initial Franchise Fee).
  • If you pay Nurse Next Door the exercise fee and it is subsequently determined that the option cannot be exercised for any reason, it will refund the exercise fee less its reasonable costs (as described above under Initial Franchise Fee).

4.  Technology Start-up Fee:  $8,000

  • Nurse Next Door charges an initial start-up technology fee of $8,000 to purchase initial software licenses and other costs relevant to start-up (the “Technology Start-up Fee”). The Technology Start-up Fee is payable at the time of execution of the Franchise Agreement and is deemed to be fully earned and non-refundable in whole or in part (except as provided below) upon execution of the Franchise Agreement.
  • If your participation in the Initial Training Program demonstrates, in Nurse Next Door’s reasonable opinion, an inability to adequately manage and operate the Franchised Business and Nurse Next Door terminates your Franchise Agreement, then it will refund the Technology Start-up Fee less its reasonable costs (as described above under Initial Franchise Fee).

5.  Royalty:  5% of Gross Sales, subject to annual minimum royalties

  • Due Date:  Monthly, on the 15th of each month. Minimum royalties are payable annually.
  • Gross Sales is all sales generated through the Franchised Business and includes fees for any services sold by you, and all other income related to the Franchised Business. Gross Sales does not include any sales tax that you collect from customers and pay to any taxing authority. Gross Sales also does not include the portion of the price of any service that is not collected by you as a result of sales discounts, refunds, or credits authorized by Nurse Next Door.

6.  Care Services Center:  the greater of 7% of Gross Sales or $300

  • Due Date:  Monthly, on the 15th of each month.
  • Care Services Center fees are used to establish and operate the Care Services Center.

7.  Technology Maintenance:  $500



  • Due Date:  Monthly, on the 15th of each month.
  • Technology maintenance for the Nurse Next Door System.

8.  License Costs:  as assessed by Nurse Next Door for any third party licensing fees

  • Due Date:  On the 15th of the month following Nurse Next Door’s assessment of licensing costs.
  • License costs are to reimburse Nurse Next Door for periodic expenses incurred in the operation of the Care Services Center including the purchase of additional software licenses, related maintenance fees, and additional software licenses to access the scheduling system.

9.  General Branding Fund Fee:  1% of Gross Sales

  • Due Date:  Monthly, on the 15th of each month.
  • Used to create regional and national branding for the System and will not be used to defray Nurse Next Door’s general costs, except for salaries, administrative costs, and overhead related to the administration, direction, and operation of the General Branding Fund.

10.  Online Marketing:  greater of $1,000 or 2% of gross sales

  • Due Date:  Monthly, on the 15th of each month.

11.  Regional Branding Cooperative:  pro rata share (based on the number of franchises in the region) of actual costs

  • Due Date:  Monthly, on the 15th of each month.
  • Nurse Next Door, you, or other franchisees may recommend the establishment of a regional branding cooperative for the purpose of branding and promotion, including the size of the region and the amount to be spent.
  • The regional branding cooperative will be mandatory for all franchises in the region if 75% of the franchises in the region consent to it.
  • Nurse Next Door will administer the regional branding cooperative.

12.  Optional Additional Training:  $500 to $2,000

  • Due Date:  Prior to attendance at training program.
  • Payable to Nurse Next Door only in respect of optional training programs. Nurse Next Door reserves the right to change these fees at anytime. It will not charge a fee for mandatory training programs.

13.  Renewal:  10% of then-current franchise fee



  • Due Date:  At the time of renewal.

14.  Audit:  all actual costs and expenses associated with the audit (approximately $1,500 to $5,000), plus a $10,000 fine in certain cases

  • Due Date:  Upon demand.
  • Audit costs payable if reports and financial information available through the computer system or furnished under the Franchise Agreement reveal inconsistencies.
  • If the audit shows you have underreported amounts you owe Nurse Next Door by 3% or more, or if underreporting is due to fraud, payment of underreported amounts, plus interest, plus a fine will be
    charged.

15.  Annual Convention:  $500 to $1,000 (per attendee)

  • Due Date:  Prior to attendance at convention.
  • Payable to Nurse Next Door if it holds an annual convention. You are solely responsible for travel, room, board, and salary expense.

16.  Transfer:  $7,500 for transfer to an existing franchise partner and $15,000 for transfer to a purchaser outside of the System

  • Due Date:  At the time of transfer.
  • You are required to obtain Nurse Next Door’s consent to any transfer, which may be withheld if certain criteria are not met.
  • If you intend to sell the Franchised Business, $7,500 will be payable upon your declaration of an intent to sell.

17.  Interest:  2% per month compounded (26.82% percent per annum) or the highest rate allowed by the state where you are located

  • Due Date:  Upon demand.
  • Applies to all overdue fees you owe Nurse Next Door. Also applies to any understatement in amounts due revealed by an audit.

18.  Indemnity Costs:  depends upon the size of the loss for which you are required to indemnify Nurse Next Door

  • Due Date:  Upon demand.
  • You must indemnify Nurse Next Door when certain of your actions result in a loss to it.

19.  Liquidated Damages:  an amount equal to your projected Royalty for the lesser of the remaining term or 3 years

  • Due Date:  If Nurse Next Door terminates the Franchise Agreement with cause or you terminate the Franchise Agreement without cause.
  • The projected Royalty will be calculated using the average monthly Gross Sales during the last 6 months of operations, or if operations are less than 6 months, then the average over the actual operating period.

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