Detailed Estimates of Nurse Next Door Franchise Costs Based on Item 7 (Estimated Initial Investment) of Nurse Next Door’s 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $50,000
2. Technology Start-Up Fee: $8,000
3. Pre-Opening Branding and Promotion: $7,000
- You are required to spend $7,000 on a pre-opening and opening promotional campaign for the Franchised Business during the period from at least 1 week immediately preceding the opening of the Franchised Business and until 3 weeks after the opening of the Franchised Business.
- These funds are paid to third party suppliers from whom you will purchase branding and promotion products and services and are typically not refundable.
4. Initial Training Program: $2,000 to $4,000
- Prior to the opening of the Franchised Business, Nurse Next Door will provide you with an Initial Training Program, which consists of a training course of up to 6 days duration at its corporate office, HeartQuarters, in Vancouver, British Columbia, Canada covering all aspects of the Franchised Business.
- Attendance is mandatory at the Initial Training Program. You may bring additional employees to the Initial Training Program but Nurse Next Door reserves the right to charge additional fees for extra attendees.
- You are responsible for all travel and living expenses and all wages payable to any trainee and no wages will be payable by Nurse Next Door to any such trainee for any service rendered during the course of such training.
- Nurse Next Door estimates that you will have to spend $2,000 to $4,000 on travel, accommodation, and living expenses while you (and key employees, if applicable) attend the Initial Training Program.
5. Office Equipment and Supplies: $500 to $3,000
- You must purchase general office supplies including stationery and typical office equipment. Factors that may affect your cost of office equipment and supplies include local market conditions, competition among suppliers, and other factors.
6. Legal and Accounting: $5,000 to $10,000
- Nurse Next Door recommends that you engage an attorney, an accountant, or other consultants to assist you in establishing your Franchised Business. These fees may vary from location to location depending on the prevailing rates of local attorneys, accountants, and consultants.
- Nurse Next Door estimates that you may have to spend $5,000 to $10,000 for incorporation of a company, initial accounting advice, and legal review of the Franchise Agreement.
7. Leased Premises: $0 to $5,000
- You can operate the Franchised Business from your home if it is permitted by local zoning rules and ordinances. Some states may not allow you to operate the Franchised Business in a home office.
- You may operate the Franchised Business from a small rented space of approximately 500 square feet. If you must lease a space, your lease costs can vary based on variance in square footage, cost per square foot, and required maintenance costs.
8. Utility Deposits: $0 to $500
- If you are a new customer of your local utilities and are leasing space for the Franchised Business, you will generally have to pay deposits to obtain services, including electric, telephone, gas, and water. The amount of the deposit and whether the deposit is refundable will vary depending on the local utilities.
- The low figure is based on your operating the Franchised Business in your home office and will thus not incur any utility deposits. The high cost is based on your leasing a commercial space.
9. Online Marketing: $3,000
- Beginning on the Start Date, you are required to make a monthly payment to Nurse Next Door in an amount that is the greater of $1,000 or 2% of your monthly gross sales.
- Nurse Next Door will direct this amount to online media costs in your market (i.e. Google Adwords). The amount represented is the minimum online marketing payment for the initial 3 months of operation.
10. Insurance (excluding worker’s compensation): $2,500 to $4,000
- You are required to obtain insurance in such minimum amounts and for such coverages as Nurse Next Door may require.
11. Worker’s Compensation Insurance: $1,000 to $15,000
- Worker’s compensation insurance will vary per state and the amount of your payroll. The amounts represented are estimates for the initial 3 months of operation and are expected to increase with the growth of the Franchised Business.
12. Vehicle: $0 to $1,000
- You are required to have a vehicle and to wrap the vehicle with the Nurse Next Door brand.
- The cost to wrap the vehicle is estimated to be between $2,500 and $5,000, which is included in the Pre-opening Branding and Promotion costs mentioned above.
- Your vehicle must meet the specifications in Nurse Next Door’s Manual, which includes that the vehicle be no older than 5 years at the time the vehicle is wrapped.
- You may use a vehicle that you already own provided that it meets Nurse Next Door’s specifications. In this case, your vehicle acquisition cost may be zero. If you lease the vehicle, your vehicle acquisition cost may be as high as indicated in the chart.
- Lease terms are provided, on approved credit terms, directly by the vehicle dealer or leasing company.
13. Computers and Related Peripherals: $500 to $3,000
- You must purchase the computers and related peripherals necessary for operating the Franchised Business. The cost of the computers and related peripherals will vary depending on the computers and related peripherals that you already own.
14. Licenses and Permits: $200 to $5,000
- You will acquire a Home Health Agency licensure to provide the full scope of services, including without limitation, skilled nursing, personal support, and companionship.
- State rules vary on non-medical and skilled nursing licensure. State and local government agencies typically charge fees for operating licenses, registration, and certification.
- Your actual costs may vary from the estimates based on the requirements of state and local government agencies.
15. Consultant and/or Director of Nursing: $0 to $15,000
- Depending on local laws, statutes, or ordinances, you may be required to hire a full-time Registered Nurse as your Director of Nursing. The Director of Nursing handles client assessments, nursing supervisory visits, and clinical staff interviews, among other tasks.
- The amount represented at the high end is an estimate of the cost of a Registered Nurse for the initial 3 months of operations. It will vary depending on where your Franchised Business is located.
16. Accreditation: $0 to $4,600
- Some states require that you obtain accreditation prior to licensure. This may extend the amount of time it takes you to open the Franchised Business.
17. CallMe Costs (system used to monitor caregiver attendance in real time): $0 to $100 (for first 3 months); 12 cents per call
18. Additional Funds for 3 to 6 Months: $20,000 to $50,000
- You are required to have working capital in the form of cash or other liquid assets to begin operations which should be approximately $20,000 to $50,000 (of which at least 75% should consist of cash with no more than 25% being other liquid assets) for operating expenses, including initial salaries.
- This estimate is based upon Nurse Next Door Canada’s experience offering franchises throughout Canada since 2007, and its experience offering franchises in the United States since 2010.
19. Total: $99,700 to $188,200
- In compiling this chart, Nurse Next Door relied on its and its affiliates’ industry knowledge and experience, which has been in both Canada and the U.S.
- The amounts shown are estimates only and may vary for many reasons, including the capabilities of your management team, the demographics of your territory, and your business experience and acumen.