Detailed Estimates of Homewatch CareGivers Franchise Costs Based on Item 7 (Estimated Initial Investment) of Homewatch CareGivers’ 2017 Franchise Disclosure Document
1. Initial Franchise Fee Per Territory: $49,000
- The initial franchise fee is $49,000 for a Territory containing up to 40,000 Seniors.
- Homewatch CareGivers may sell a Territory with a population of as few as 15,000 Seniors in appropriate circumstances, but this does not reduce the initial franchise fee.
- If you qualify for the VetFran program, you will receive a 10% discount.
- If you qualify, you may purchase additional Territories for a 15% discount off the initial franchise fee ($41,650).
- You must pay the initial franchise fees and supplemental territory fees, if applicable, for each Business and sign all Franchise Agreements for the initial group of Businesses to be developed.
2. Supplemental Territory Fee: $0 to $12,500
- If you opt to buy a Territory with more than 40,000 Seniors, you pay $1.25 per Senior up to a maximum of 50,000 Seniors.
3. Initial Telephone System Costs (installation of two lines): $250 to $500
- These are the costs associated with purchasing two phones using a voice over Internet protocol (VOIP) telephone system.
- You must have an adequate number of telephone lines dedicated solely to your Homewatch CareGivers Business and an employee answering your phone number at all times during regular business hours.
- You must have one employee on call 24 hours a day to return urgent phone messages with a cell phone. The costs of purchasing a cell phone and setting up cell phone service are also included in these estimates.
- Your telephone system must be capable of being rolled to a cell phone, and must also be able to handle conference calls.
- You will incur additional monthly charges for your telephone service, the first three months of which are included in the chart under Additional Funds.
4. Training Expenses: $1,500 to $4,500
- Tuition for up to three individuals attending Homewatch CareGivers’ initial training program is included in your initial franchise fee.
- You are responsible for all travel, lodging, and living expenses associated with attendance at the initial training program and other training programs. You must also pay salaries of your employees who attend initial training.
5. Office Equipment and Computer Hardware and Off-the-Shelf Software: $1,000 to $2,000
- You must purchase a Microsoft-compatible computer loaded with a supported version of Microsoft Office, MS Outlook, MS Word, MS Excel, MS PowerPoint, MS Internet Explorer, and Quickbooks Pro, plus a cellular phone dedicated to your Business, a fax machine, copy machine, and a printer.
- You are required to have high-speed broadband access to the Internet installed at your office location.
6. Security Deposits: $1,000 to $3,000
7. Office Furniture: $1,000 to $2,000
8. Insurance and Liability: $3,250 to $4,000
- The cost of the insurance premium will vary depending on the location and size of your Business premises and the number of employees and nurse independent contractors. The cost of the insurance premium may also change periodically due to changes in insurance rates or due to your claims and loss history.
9. Workers’ Compensation Insurance: $2,500 to $10,500
- You are also required to carry workers’ compensation insurance to cover your employees. The premium rate varies from state to state and Homewatch CareGivers’ estimate is based on a base payroll for your first year in business.
10. Local Marketing Expenditure: $3,000
- You must spend the greater of $1,500 per month or 2% of monthly Gross Billings, averaged over the past 12 months, for local promotion and marketing in the Territory.
- You will begin spending this amount in the second month after the Opening of Business Date.
11. Licenses, Permits, and Professional Fees: $500 to $10,000
- You must acquire all licenses and permits necessary to operate a Business in your state, county, and municipality.
- The cost of obtaining licenses or permits varies widely, from a small business registration, to accreditation fees ranging from $500 to $8,000.
- Homewatch CareGivers strongly recommends that you retain an attorney, accountant, or business advisor to assist you in establishing a Business and obtaining all necessary licenses and permits in every state, county, and municipality in your Territory.
12. Additional Funds for 3 Months: $20,000 to $30,000
- This amount is an estimate of your pre-operational expenses that are not listed above, as well as estimated additional funds necessary for the first three months of your Business operations.
- These expenses include payroll costs, including costs for an operations and/or marketing position, but do not include any draw or salary or personal living expenses for you, or the financing costs if you are borrowing money to fund your initial investment.
- This estimate also includes amounts incurred for three months rent, marketing and advertising, office expenses, insurance, taxes, royalties, costs for telephone service, payroll processing fees, credit card processing fees, and other operational expenses.
- You must rent approximately 350 to 600 square feet of commercial office space within your Territory and at a location approved by Homewatch CareGivers on or before your business opening date.
- Depending on state laws and regulations that may apply to your Homewatch CareGivers Business, additional time may be required to obtain licenses for your Business and your staff that could delay your opening and require you to have up to an additional $5,000 during this initial period. This additional $5,000 is included in the high number in the chart above.
13. Total Estimated Initial Investment Per Territory: $83,000 to $131,000
- Homewatch CareGivers relied on its management’s analysis of the last 10 years of operations of both franchised and affiliate-owned Homewatch CareGivers Businesses to compile these estimates. These estimates do not include any salary or draw for you.
- Homewatch CareGivers strongly recommends that you have an additional $40,000 to $60,000 to invest in the Business in the first year.