Detailed Estimates of Home Helpers Franchise Costs Based on Item 7 (Estimated Initial Investment) of Home Helpers’ 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $46,900, plus $500 for all or part of every 1,000 people over 200,000
- The franchise fee for a territory with a population of up to 200,000 is $46,900. If the population of your territory exceeds 200,000, you must pay an additional $500 for all or part of every 1,000 people over 200,000.
- The initial fee includes an initial supply of Direct Link medical units.
2. Other Equipment and Furniture: $500 to $2,000
3. Computer System: $2,500 to $4,000
- The cost of the computer equipment and software you will need to operate your franchise will depend upon the manufacturer, the operating features, whether the equipment is new or used, and whether you purchase, rent, or lease it.
4. Travel and Living Expenses While Training: $750 to $2,500
- Home Helpers does not charge an additional fee for the initial training, but you must pay the expenses of travel, lodging, food, wages, and workers’ compensation for you and your employees during the training program.
- These expenses will range from $750 to $2,500, depending upon the distance and method of travel and the availability and quality of your hotel accommodations and living expenses during the training program.
5. Initial Rent, Telephone, Bank, and Other Deposits: $0 to $2,000
- Your telephone service provider will typically require a normally refundable deposit for commercial service.
- You are required to have a separate business telephone line for your franchise and either an employee to answer your line or a live answering service at all times.
- Some states also require a deposit for workers’ compensation coverage.
6. Additional Funds for 3 Months: $20,000 to $45,000
- You should have approximately $20,000 to $45,000 of additional funds for such items as payroll expenses, advertising, initial supplies, operating expenses, and similar items during the initial phase of your business (approximately 3 months).
- In formulating the amount required for additional funds, Home Helpers relied upon its experience in franchising home care businesses since 1997. These figures are estimates and Home Helpers cannot guarantee that you will not have additional expenses starting the business.
- You may also incur expenses for business license fees, legal fees, accounting fees, and local permits and operating authorizations necessary to start your business, which may vary considerably from one area to another.
- If you choose to become Medicare-certified, then you should have $100,000 to $200,000 of operating funds available after Medicare application approval; half of these funds may be borrowed, but half must be readily available.
7. Grand Opening Kit: $2,600
- You must pay Home Helpers a one-time fee of $2,600 for a Grand Opening Kit. The Grand Opening Kit consists of a site license for the required accounting software; answering service for 6 months; a license for the required scheduling and billing software; and various marketing and public relations materials.
8. Technology Fee: $600
- You must also pay Home Helpers an annual Technology Fee of $600 for technology that it licenses or otherwise makes available to you throughout the term of your Franchise Agreement. The amount of the Technology Fee is subject to change.
- In its discretion, Home Helpers may require you to purchase some or all of the technology tools directly from a third-party supplier.
9. Licensing Fee: $0 to $15,000
- Certain states require a license for some of the services that you may provide. You should investigate licensure requirements for the state in which you will operate and the licensure fees, if any, that may be required.
10. Monthly Office Rental Payment: $0 to $1,000
- The terms of your lease will depend on the size, location, condition, and desirability of the premises. You will probably be required to pay a normally refundable security deposit, which is reflected in the above chart.
- You may operate your franchise from your home, if it is within your territory, during your first two years of operation, if permitted to do so by state and local law. If you elect to provide personal care or companion care services, then some states may require an out-of-home office.
- As of the date of the 2018 Disclosure Document, Home Helpers is aware that the state of Florida requires an out-of-home office if you provide personal care services, and the states of Maine, Oklahoma, Rhode Island, and Virginia require an out-of-home office if you provide either personal care or companion care services.
- You are responsible for investigating and complying with any such laws that may apply in your territory.
11. Insurance: $2,000 to $6,000
- Home Helpers must be named as an additional insured on these policies.
- Home Helpers estimates that the average total annual cost for the required insurance coverage will be between $2,000 and $6,000.
- The premium is typically due prior to the effective date of the coverage unless your insurance company offers monthly or quarterly payment terms.
- Insurance costs will vary depending upon the location and size of your office, the number of employees and other factors, and may change from time to time due to changes in insurance rates.
- You must also maintain workers’ compensation coverage and any other insurance that may be required by law in your territory.
12. Total: $75,850 to $127,600
- The total figures listed in the above charts do not include compensation for your time or labor. Neither do the total figures take into account any finance charges, interest, debt service, or other costs that you may incur to finance all or any portion of your investment.
- In addition to the initial investment itemized in the above chart, you must have additional monies available, whether in cash or through a line of credit, or have other assets that you can liquidate or against which you can borrow, to cover your personal living expenses and any operating losses sustained during the initial phase of the business.
- You may need a vehicle for each employee, but it is anticipated that you and your employees will use their own vehicles.