Detailed Estimates of Visiting Angels Franchise Costs Based on Item 7 (Estimated Initial Investment) of Visiting Angels’ 2018 Franchise Disclosure Document
- All amounts other than the Initial Franchise Fee are approximate and represent best estimates of beginning expenditures. The estimates will vary depending upon location of the business, payroll costs custom and usage in the area, and other factors over which Visiting Angels has no control.
- These are Visiting Angels’ best estimates at the time of preparation of the Disclosure Document.
- Visiting Angels cautions you to investigate independently the expenses not paid directly to it and which may be incurred.
1. Initial Franchise Fee: $45,950 for up to 100K population; $54,950 for up to 200K population; $69,950 for up to 325K population
- Additional protected territory can be purchased for a fee which will be calculated based on the price of the current Franchise Offering at the time of purchase.
2. Printing/Supplies: $1,500
3. Deposits, Insurances, Licenses, Lease: $5,000
- You must purchase and maintain comprehensive general or professional liability (liability coverage for events which may occur in the clients’ residences), including public liability, personal injury insurance in a minimum amount of $1,000,000, with an annual aggregate limit of liability of $2,000,000.
- You will also purchase employment practices insurance in amounts specified in the Operations/Training Manual.
4. Workers Comp. Insurance: $9,500
- You must also obtain employer’s liability, workers’ compensation, and such other insurance as may be required by statute or rule of the state or locality in which the Franchised Business is located and operated. A typical initial deposit for workers’ compensation insurance for the first year in business is $9,500.
5. Minimum Royalty: $1,785
6. Travel, Lodging Expenses During Training: $1,500 to $2,000 per person
7. Computer and Software: $0 to $3,000; $1,450 to $3,000
- You must purchase from a commercial vendor the software (QB) which Visiting Angels uses in its franchise system, or software which will perform similar functions. You will purchase Operations Software which is specialized for use in the home care business.
- You must purchase a computer hardware system compatible with the software system.
8. Advertising Fee, Plus Local Ads (first 3 months): $1,650/$1,800 to $3,600
9. Additional Funds (3 months): $50,000
- You should also have adequate funds available to pay for living expenses in addition to adequate operating capital. The amount necessary shall vary according to your personal needs, mode and source of living.
- The amounts inserted for “additional funds” are based on spending approximately $1,000 per month on advertising for the first 3 months in business and to have sufficient funds for payroll to pay caregivers to work on up to 10 full-time cases (40 hours per week at $9 to $12 per hour) for 2 weeks prior to being paid revenues from clients.
- Living Assistance Services, Inc. relied on 19 years of franchise start-up experience to estimate the additional funds.
10. Total: $120,135 to $150,985
- This estimates your initial start-up expenses during the first six months of operation of the Franchised Business. These expenses include payroll costs and working capital.
- The above examples do not include any funds that would be necessary for your personal living expenses during the start-up phase of the business.
- These figures are estimates and Visiting Angels cannot guarantee that you will not have additional expenses in starting the business.
- Your costs will depend on factors such as: the state in which you will be operating; how closely you follow Visiting Angels’ methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for Visiting Angels’ product or service; the prevailing wage rate; competition; and the level of sales reached during the start-up phase of the business.