Updated March 13, 2020.
Detailed Estimates of FirstLight Home Care Franchise Costs Based on Item 7 (Estimated Initial Investment) of FirstLight Home Care’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $48,000
- The initial franchise fee is payable by you to FirstLight in a lump sum when you sign the Franchise Agreement and is nonrefundable.
- The initial franchise fee includes payment for one tablet as part of your required computer equipment package.
- If you signed a Deposit Agreement to hold a protected area and paid the $24,000 nonrefundable deposit fee, then the initial franchise fee is $24,000, which also is due in a lump sum when you sign the Franchise Agreement and is nonrefundable.
2. Travel and Training Expenses: $2,125 to $4,042
- The estimates of travel, lodging, and meal expenses set forth above assume that two people will attend the 5-day New Owner Training.
- Depending on availability, you may send additional employees to the initial training program on payment of such tuition fees as FirstLight Home Care may establish occasionally for the additional persons attending the initial training program.
3. Business Premises: $0 to $4,800
- Your selection of the premises for your FirstLight Home Care Business will be subject to the prior written approval of FirstLight.
- Home-based locations may be approved as a designated premises for your FirstLight Home Care Business for up to 1 year following the effective date of the Franchise Agreement.
- If you lease real estate for your FirstLight Home Care Business, you may incur some buildout expenses. Depending on the terms of your lease, you may also incur real estate broker fees, prepayment of the last month’s rent, common area maintenance fees, operating fees, and other expenses charged by the landlord. Landlords generally require a security deposit of at least one month’s rent.
- FirstLight recommends that you allocate a minimum of 600 to 800 square feet for your FirstLight Home Care Business.
4. Start-Up Supplies and Inventory: $300 to $900
- The range of estimates provided above is for items such as business cards, letterhead, envelopes, and apparel for you and your staff.
5. Employment Screening: $256 to $384
- Background checks and credit checks must be performed on all employees of your FirstLight Home Care Business before their date of hire, and the report information provided by these checks must be acceptable under the guidelines provided in the Operations Manual.
- You must be the direct employer of all your employees.
- The estimate of screening cost provided here is based on screening being performed for all employees hired during the first 3 to 6 months of operation, which is estimated to be between 6 to 12 individuals.
6. Equipment, Signage, Graphics: $250 to $2,450
- The range of estimates provided above is for office equipment, signage, and furniture for use in your FirstLight Home Care Business, such as desks, desk chairs, and credenzas for you and your staff.
- You are not obligated to display advertisements on vehicles used by your FirstLight Home Care Business.
- The high end estimate above includes the cost of having one full vehicle wrap being purchased in accordance with brand standards.
7. Advertising, Marketing, and Promotions: $4,000 to $6,000
- Media advertising includes such mechanisms as print brochures, networking materials, all networking activities, and internet marketing activities during your first three months of operation.
8. Grand Opening Marketing: $1,500 to $3,000
- You must spend an amount determined by FirstLight, which will not exceed $3,000, on the grand opening event for your FirstLight Home Care Business.
- A grand opening “launch event” is critical to building awareness for key referral sources in your market area. This event usually takes the form of a social gathering/networking event in a local hotel, office complex, healthcare facility, or chamber of commerce meeting room for a 2-3 hour period.
- Invitations, facility rental, advertising, light food, and beverages are the primary expenses projected for this event.
9. Other Prepaid Expenses: $7,850 to $9,850
- The estimates presented above include the cost of utilities, security deposits, phone deposits, prepaid expenses, and professional expenses associated with opening your FirstLight Home Care Business.
- Some of your deposits may be refundable to you at a later time.
- This estimate also includes the fees (during the first 3 months of operation) associated with services you may be required to utilize for LMS, HER, a professional employer organization (PEO), and client management software.
10. Business Permits, Licenses, and Fees: $0 to $7,000
- The above estimate includes the cost and fees payable to governmental entities for business licenses and permits.
- These costs and fees will vary depending on the location and size of your FirstLight Home Care Business, and are payable to the governmental entity requiring payment of such fees, generally before opening.
11. Insurance: $6,000 to $12,000
- The estimate is for one year of liability insurance coverage, including non-owned automobile coverage.
- With respect to your employees, you may incur expenses for workers’ compensation insurance. FirstLight is unable to estimate amounts that you may be required to spend for workers’ compensation insurance, but it anticipates that the cost of workers’ compensation would be covered by the “Additional Funds” estimate.
12. Computer Equipment: $2,600 to $4,450
- The estimates presented above include two computers, tablets or laptops, a single printer, web access software, monthly licensing fee for your use of Microsoft Office, Google applications, or similar web messaging software, and additional tablets for EHR system use, if desired.
- Licensing fees for the technology platform are waived for the first 3 months you operate your new FirstLight Home Care Business.
13. Additional Funds (3 to 6 Months): $38,000 to $65,000
- This is an estimate only of the range of initial start-up and operating expenses that you may incur. These expenses include HR Business Consulting services, initial caregiver estimated labor costs, repairs and maintenance, utilities and supplies, and added general overhead costs, among others, based on your decisions.
- The estimate of additional funds does not include any allowance for an owner’s draw.
- The estimate of additional funds is based on FirstLight management’s experience but no assurance can be given that these estimates are accurate for any particular franchisee.
14. Total: $110,881 to $167,876