Updated April 8, 2019.
Detailed Estimates of ComForCare Home Care Franchise Costs Based on Item 7 (Estimated Initial Investment) of ComForCare Home Care’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $40,000 to $50,000
- Initial fee for the purchase of a new Tier 1 franchise with a population of between 25,000 and 35,000 Seniors is $50,000. The initial fee for the purchase of a new Tier 2 franchise with a population of between 15,000 but less than 25,000 Seniors is $40,000.
- ComForCare does not finance any of this fee.
2. Travel Expenses for Training: $2,100 to $2,600
3. Real Estate and Expenses (3 to 6 months): $3,000 to $7,500
- If you do not own adequate office space, you must lease adequate office space. Typical locations are in office buildings. A typical new ComForCare Home Care office includes 300-500 square feet of space. Rent is estimated to be $12,000 to $15,000 annually depending on size, condition, and location of leased premises.
4. Office Equipment, Backup, and Access Fees: $1,100 to $2,100
- This amount may be necessary to purchase a small TV and VCR/DVD unit for training, office furniture, decorations, fixtures, and incidental supplies.
5. Computer System: $1,500 to $2,500
- This amount is necessary to purchase your computer hardware, software, data storage, and access fees. This amount also includes your Technology Fee, Email Hosting Fee, and Data Access and
6. Signs: $100 to $500
7. Miscellaneous Opening Costs: $1,200 to $5,000
- This amount includes utilities, business licenses, incorporation, or applicable legal fees.
8. Licensing and Accreditation Fees: $0 to $31,000
- Your state of operation may require that you obtain some form of licensure and/or accreditation before being allowed to provide the Approved Services. Initial license fees as well as license renewal fees vary, but traditionally range anywhere from $25 to $6,000 per year and are your sole responsibility.
- In addition, your state of operation may require that you, or those you employ, have specific educational, professional, and health care experience in order to obtain your license, registration, accreditation, or certification. Initial accreditation fees (as well as accreditation renewal fees) can range from $5,000 to $15,000 and are your sole responsibility.
- You may use a third-party consultant to help obtain licensure and/or accreditation and such fees can range from $500 to $10,000.
9. Human Resource Fees: $500 to $1,000
- You must purchase training videos that relate to universal health precautions. In addition, if you are located in California, you must enroll in the California Chamber of Commerce’s “HR California” website. If you are located in any state other than California, you must become a member of The Society for Human Resource Management (SHRM).
10. Insurance (3 to 6 months): $2,500 to $9,000
- This amount represents an initial insurance deposit. Required insurance policies include comprehensive general liability, including automobile liability, third-party fidelity bond coverage, employment practices liability insurance, worker’s compensation, network security (cyber) insurance, and any other insurance required by statute or state law.
- The estimated cost for all insurance during the first year of operation is $7,500 to $18,000.
11. Office Supplies: $1,000 to $2,000
- Exhibit D of the Disclosure Document details a list of items included with the franchise fee for new franchisees. You will, however, need to obtain an inventory of basic office supplies.
12. Local Marketing and Advertising (3 to 6 Months): $5,250 to $19,500
- This amount represents charges in the first 3 to 6 months for various dues and memberships for marketing, e-newsletter distribution, promotional materials, internet advertising, advertising, and employee-related sales expenses.
- All of these charges fall under the $1,750 minimum Local Advertising requirement located in Item 11. This amount also represents the minimum budget of $750 per month for local internet marketing programs provided by third-party vendors approved by ComForCare, and the payment for such programs is to be paid direct to the vendor.
- ComForCare recommends that you spend, at a minimum, an additional $1,500 a month during the first 6 months of operation ($9,000 total) on local marketing activities such as, but not limited to, pay-per-click advertising, TV/radio advertising, direct mailers, etc. in order to build local brand awareness.
- In addition, at a later date, ComForCare may elect to create an Advertising Co-Sponsorship Program wherein it may provide you certain reimbursements for any television and radio advertising you conduct.
13. Recruiting Expenses (3 to 6 Months): $2,250 to $4,500
- You are required to spend, at a minimum, the greater of 2% or $750 per month on your caregiver recruiting and retention efforts including, but not limited to: print hiring ads, job fairs, and third-party recruiting vendors. Of this minimum, at least $250 per month should be spent on your digital (on-line) caregiver recruiting and retention efforts.
14. Additional Funds (3 to 6 Months): $20,800 to $48,100
- ComForCare requires that you begin your ComForCare Home Care business with at least 3 months of additional working capital funds, but it suggests that you begin your ComForCare Home Care business with at least 6 months of additional working capital funds.
- These expenses include caregiver payroll costs and payroll for at least one other employee to help open your business, but do not include an owner’s salary.
- This also includes travel costs for attendance at regional meetings and/or annual conferences, depending on when you start your business, as well as credit card processing fees for receipt of client invoices.
15. Total: $81,300 to $185,300
- The total estimated initial investment in this table is for a franchised business that provides personal/domestic care services and supplemental staffing services. These figures are based on estimates from ComForCare’s experience in this industry since 1996.