Updated January 24, 2021.
Detailed Estimates of HomeWell Care Services Franchise Costs Based on Item 7 (Estimated Initial Investment) of HomeWell Care Services’ 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $49,500
- Your Initial Franchise Fee includes initial “Core Training.”
- If you purchase one or more additional franchised territories (and sign separate Franchise Agreements) at the time that you purchase your first franchise, you will receive a 20 percent discount on the initial fee for each additional territory that you purchase.
- HomeWell also offers a 10 percent discount for qualified military veterans.
2. Travel and Living Expense for Initial Training: $1,500 to $2,500
- You are required to attend Core Training at HomeWell’s corporate headquarters. Although HomeWell does not charge a separate fee for initial training for two attendees, you are responsible for arranging transportation, as well as expenses incurred while attending training, including meals and lodging.
- The low figure assumes one person attending. The high figure assumes two people attending. If you send more than two people to Core Training, HomeWell reserves the right to charge an additional training fee of $1,000 for each additional attendee.
3. Real Estate: $2,100 to $9,000
- You must provide a suitable commercial space for your business. Typical locations are strip centers and commercial office buildings. A typical office will range in size from 300 to 1,000 square feet.
- HomeWell estimates that your rent will be $600 to $1,500 per month or a total of $1,800 to $9,000 for an initial period of six months (approximately three months before opening and three months after opening).
- If your site is larger, has a higher rental rate, or if you have to pay for additional months before you open, then your costs will be higher than those in the chart.
- If you decide to buy the property where your Facility will operate, you will incur additional costs that HomeWell cannot estimate.
4. Furniture and Furnishings: $0 to $5,000
- Only basic office furniture is required for operation of your Business. If you lease an executive suite or shared office space, furniture and furnishings may be included at no additional charge.
5. Signage: $300 to $4,000
- This range includes the estimated costs to acquire the signage required for your location, which may include door lettering, placards, or storefront signage.
6. Computer Hardware: $1,000 to $3,000
- This range includes estimated costs of one to three desktop or laptop computers, a printer, and monitor(s) for your business.
7. Computer Software: $760 to $1,560
- This range includes the estimated costs to license the software that HomeWell requires you to use in your Franchised Business, including ClearCare management system, Quickbooks, Microsoft Office, and Microsoft Exchange email services provided through HomeWell, for three to six months ($24 for two accounts with 50 GB of storage for three months and $240 for 5 accounts with unlimited storage for six months).
8. Office Equipment and Supplies: $1,000 to $2,000
- This range includes estimated costs associated with basic office supplies and typical equipment, such as a copy machine and filing cabinets.
9. Marketing Materials: $2,000 to $4,000
- You can expect to purchase an initial inventory of (and on an ongoing basis after that) HomeWell-approved marketing collateral and other branded marketing materials to supplement your sales efforts. This amount will vary depending on the specific items and quantities of materials chosen.
10. Local Marketing: $3,000 to $18,000
- You must spend a minimum of $1,000 or 2% of Gross Revenues, whichever is greater, on local marketing.
- This range includes the estimated costs for three to six months for local marketing and advertising efforts. The low figure of this range is your required minimum for three months. The high figure includes an estimated spend of various advertising methods for six months.
- This amount does not include expenses related to Grand Opening Marketing, Brand Fund contributions, or caregiver recruiting spend.
11. Grand Opening Marketing: $1,000 to $5,000
- You must have a grand opening event during the period beginning 30 days before opening and ending 90 days after opening, but HomeWell does not require that you spend a specified amount on your grand opening event.
12. Payroll Expenses: $20,000 to $65,000
- You should expect to have at least one full-time employee upon opening your Franchised Business. This range does not include caregiver wages or an owner’s distribution or salary.
- Certain states require that you have a nurse or administrator as part of your staff. You should verify if you must meet this requirement in your state.
- The low figure includes the approximate salary and associated payroll burden of one full-time employee for three months. The high figure includes the salary and associated payroll burden of two full-time employees (including a nurse or administrator) for six months.
13. Caregiver Recruitment and Training: $3,000 to $6,000
- This range includes the estimated costs of caregiver recruitment, training, and other onboarding costs for three to six months.
14. Professional Fees: $0 to $5,000
- You may require the services of an attorney, CPA, or other advisor when you establish your business. This range includes the estimated costs for these services, which may vary depending on your business needs and state requirements.
15. Miscellaneous Pre-Opening and Opening Costs: $500 to $1,000
- This estimate includes other deposits, utility costs, and telephone and communications costs.
16. Licenses and Permits: $100 to $6,000
- Depending on your state and local government licensing requirements, you may be required to pay registration fees to perform personal care services. These fees vary from state to state. It is your responsibility to review, understand, and comply with all laws pertaining to your business.
17. Insurance: $1,500 to $5,000
- You must purchase and maintain insurance coverage from approved suppliers as specified in the Franchise Agreement or Manual. This range is an estimate of one year of insurance premiums (not including workers’ compensation, which varies widely by location).
18. Additional Funds for 3 Months: $9,000 to $30,000
- HomeWell recommends that you have working capital funds to cover certain operating expenses, such as rent, marketing collateral, and local marketing, for an additional three months (beyond the initial three-month start-up period).
- This category does not include employee wages or an owner’s distribution, salary, or living expenses, and the actual costs that you incur (and funds that you will need) may be higher or lower than the estimate, depending upon factors, including general economic conditions and your local market.
19. Total Estimated Initial Investment: $96,400 to $221,980
- HomeWell has relied on the experience of its existing franchisees in preparing the estimates in the chart. The figures in the chart and explanatory notes are only estimates, however, and you may need additional working capital during this start-up phase or after.