Updated March 13, 2020.

If you are considering a FirstLight Home Care franchise, don’t get blindsided by these 26 important franchise fees (from the initial franchise fee, to the royalty fee, to 24 other fees found in Items 5 and 6 of FirstLight Home Care’s 2019 FDD).

1.  Initial Franchise Fee:  $48,000

• In order to acquire a FirstLight Home Care franchise, you must pay to FirstLight an initial franchise fee in the amount of $48,000. The initial franchise fee is due in full at the time you sign the Franchise Agreement and is not refundable.

• If you sign a Deposit Agreement with FirstLight to hold a Franchised Area for you while you consider the purchase of the FirstLight Home Care franchise, you must pay FirstLight a non-refundable deposit fee in the amount of $24,000.

• If you sign a Franchise Agreement with FirstLight within 14 days after paying the deposit fee, then the amount of the deposit fee will be credited toward payment of your initial franchise fee.

• If you currently operate an independent, non-medical, in-home care business that you would like to convert into a FirstLight Home Care franchise, and FirstLight is willing to allow you to convert your business into a FirstLight Home Care franchise, you will sign the Franchise Agreement as well as the Conversion Addendum.

• On signing a Franchise Agreement with a Conversion Addendum, you must pay to FirstLight an initial franchise fee in an amount up to $21,750.

• If you qualify, FirstLight’s affiliate Cornerstone Finance may finance a portion of your initial franchise fee, in an amount of up to $21,750, as discussed in Item 10.

• If an existing FirstLight Home Care franchisee purchases an additional franchise or franchises beyond the first franchise, FirstLight currently is offering the following discounts off of the applicable initial franchise fees: second franchise – a discount of 10% off of the current initial franchise fee; third franchise – a discount of 15% off of the current initial franchise fee; fourth franchise – a discount of 20% off of the current initial franchise fee; and fifth franchise or additional franchises – a discount of 25% off of the current initial franchise fee.

• New franchisees who are honorably discharged veterans of U.S. military service will be provided a discount in the amount of $12,500 from the usual amount of the initial franchise fee ($44,500) for the purchase of their first FirstLight Home Care franchise.

• New franchisees who are women or are members of an ethnic minority group will be provided a discount in the amount of $2,500 from the usual amount of the initial franchise fee ($44,500). For purposes of FirstLight’s program, a “minority” means an individual who is a United States citizen and who is a member of an ethnic minority group.

2.  Area Development Fee:  $24,000 for each of the FirstLight Home Care Businesses reflected in the development schedule

• In order to acquire FirstLight Home Care area development rights, you must pay to FirstLight an area development fee in the amount of $24,000 for each of the FirstLight Home Care Businesses reflected in the development schedule attached to the Area Development Agreement.

• The area development fee is due in full at the time you sign the Area Development Agreement and is not refundable.

• As you sign individual Franchise Agreements for the FirstLight Home Care Businesses within your area development territory, $24,000 of your area development fee will be applied toward payment of each initial franchise fee.

• When you sign the Area Development Agreement, you must also sign the Franchise Agreement for the first of the individual franchises to be developed as part of the area development.

3.  Royalty:  during months 1-15: 5% of Gross Revenues received, or $250, whichever is greater. During months 16 and going forward: 5% of Gross Revenues received, or a Royalty based upon the Minimum Performance Standard Gross Revenue amount, whichever is greater.

• Due Date:  Monthly, on or before the 10th day of the following calendar month.

• Amounts are payable to FirstLight.

4.  Renewal Fee:  15% of the then-current initial franchise fee that would be payable at the time of renewal

• Due Date:  Before effectiveness of renewal.

• Amounts are payable to FirstLight.

5.  Late Payment Fee:  the lesser of 18% annual rate of interest, or the maximum amount permitted by law, for the period from the payment due date until the actual date of payment on all late payments, plus any costs for collection and up to a $500 late fee for any payment not received on the due date

• Due Date:  At time of late payment or earlier on demand.

• Amounts are payable to FirstLight.

6.  Approved Supplier Fee:  FirstLight’s costs and expenses incurred in connection with examination, testing, and/or inspection of proposed new approved supplier and goods or services. FirstLight estimates a typical cost for examination, testing, and/or inspection to be between $50 and $100.

• Due Date:  On receipt of invoice.

• Amounts are payable to FirstLight.

7.  Tuition Fees for Initial Training:  currently $0. If established, FirstLight estimates that a typical franchise will pay tuition fees of $75 to $500 per attendee.

• Due Date:  On receipt of invoice, prior to attending training.

• Amounts are payable to FirstLight.

8.  Inspection Fee and Related Fees:  $50 per hour, plus 150% of the cost incurred by FirstLight in conducting the inspection for violations present in other inspections within the prior 12-month period, as well as its costs and expenses of removing, replacing, or repairing nonconforming items or conditions

• Due Date:  On receipt of invoice.

• Amounts are payable to FirstLight.

9.  Onsite Advice and Consultation Fee:  150% of the total visit expenses for staff members for visits which FirstLight deems to be beyond a reasonable number

• Due Date:  Immediately on invoice.

• Amounts are payable to FirstLight.

• FirstLight must make 2 visits each year and will impose this fee only for visits which it deems to be unreasonable in number.

10.  Audit Fee:  costs and expenses (including attorneys’ and accountants’ fees) of audit finding understatement of Gross Revenues of at least 2%

• Due Date:  Immediately on invoice.

• Amounts are payable to FirstLight and third parties.

11.  Technology Platform Fee:  beginning in the 4th full month of operation, currently $499 to $699 per month for each Franchised Area. Additional modules and platform modifications may add costs at owner discretion and selection.

• Due Date:  Monthly, on or before the 10th day of the following calendar month.

• Amounts are currently payable to FirstLight.

12.  Client Management Software Fee:  currently, $7.75 per active client per month

• Due Date:  Monthly, on or before the 10th day of the following calendar month.

• Amounts are currently payable to FirstLight and/or a third-party provider.

13.  Client Satisfaction Survey Fee:  all costs of conducting client and/or caregiver satisfaction surveys. Currently up to $22 per assessment survey.

• Due Date:  Immediately on invoice, as conducted quarterly.

• Amounts are payable to FirstLight or its designee.

14.  Indemnification of FirstLight Home Care Franchising for Expenses of Claims:  the amounts of all losses and expenses that FirstLight incurs in connection with legal actions arising out of your ownership, operation, construction, or improvement of your FirstLight Home Care franchise

• Due Date:  On receipt of invoice.

• Amounts are payable to FirstLight.

15.  Payment to National Advertising Fund:  the greater of 1% of Gross Revenues received or $25 per month. FirstLight reserves the right to increase the National Advertising Fund contribution requirement, but to an amount not to exceed 2% of Gross Revenues.

• Due Date:  Monthly, on the same date when royalties are due, commencing during your first month of operations.

• Amounts are payable to FirstLight or its designee.

16.  Local Advertising:  $1,500 (may include internet marketing below)

• Due Date:  Monthly.

• Amounts are payable to print media and others.

17.  Advertising Cooperatives:  as determined by the cooperative members

• Due Date:  As determined by the cooperative members.

• Amounts are payable to the cooperative.

18.  Internet Marketing:  $675 to $950

• Due Date:  Monthly.

• Amounts are payable to FirstLight’s approved web marketing provider, or to the vendor of your choice.

19.  Transfer Fee:  20% of the then-current initial franchise fee applicable at the time of transfer

• Due Date:  Before effective date of transfer.

• Amounts are payable to FirstLight when you sell your franchise or your franchise is otherwise transferred.

20.  Sales Reports:  $500 for any month, or portion of any month, that FirstLight does not have access through your computerized system to your sales reports

• Due Date:  On the 10th of each month and on receipt of invoice.

• Amounts are payable to FirstLight.

21.  Attorneys’ Fees and Disbursements, Accounting Fees, and Disbursements and Court Costs:  prevailing party in a dispute between FirstLight and you under the Franchise Agreement is entitled to recover its expenses, including attorneys’ fees and disbursements, accounting fees and disbursements, and court costs

• Due Date:  On receipt of invoice.

• Amounts are payable to FirstLight and third parties (only if FirstLight prevails).

22.  Fee for Increase in Franchised Area:  currently $192 for each 1,000 persons in residential population in the additional area

• Due Date:  On signing the addendum to the Franchise Agreement related to the increase in the Franchised Area.

• Amounts are payable to FirstLight.

23.  Extension Fee Under the Area Development Agreement:  $6,000

• Due Date:  On requesting up to a 6-month extension in which to open a FirstLight Home Care Business under the Area Development Agreement.

• Amounts are payable to FirstLight.

24.  Profit Mastery Program:  $895 to $3,200/year

• Due Date:  Currently, franchisee may opt-in to participate. Payable monthly on invoice.

• Amounts are payable to FirstLight.

25.  Applicant Tracking System (ATS):  $675/year (based on owner participation)

• Due Date:  On invoice paid monthly.

• Amounts are payable to vendors.

26.  HR Business Consulting:  $4,200/year. FirstLight will pay $2,100 for franchisee’s first 6 months in operation and franchisee pays $2,100 for the remaining 6 months in franchisee’s first year of operation.

• Due Date:  Paid monthly by franchisee commencing on the 6th month of operation. Optional after the first full year of operation.

• Paid to third-party supplier.

• The pricing described above is only for new franchisees.