Detailed Estimates of Interim HealthCare Franchise Costs Based on Item 7 (Estimated Initial Investment) of Interim HealthCare’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $50,000
- Interim HealthCare does not provide direct or indirect financing to franchisees for the initial franchise fee or any other items.
- The amount of the initial franchise fee may occasionally be reduced or waived under expansion programs offered to existing franchise owners who wish to establish additional franchises.
- Interim HealthCare may also discount the initial franchise fees for new franchisees that purchase multiple franchise markets simultaneously. There are currently no “standard” reduced franchise fee incentives offered.
2. Real Property: $1,000 to $2,500
- You do not have to purchase real estate for the Franchise Business.
- Interim HealthCare assumes you will operate the Franchise Business from an office building of any size in either a downtown or suburban area. The cost of leasing space will vary depending primarily upon the location.
- You will initially need approximately 1,000 square feet of space for the Franchise Business. Interim HealthCare estimates that monthly rental payments for the premises will range from $1,000 to $2,500. You may also be required to pay security deposits and one or more month’s rent in advance.
3. Leasehold Improvements, Furniture, Fixtures: $4,000 to $10,000
- You may lease or purchase office furniture and fixtures. The cost will vary depending on the location and quality.
4. Equipment: $2,500 to $3,500
- You will need to purchase or lease certain items of equipment, including telephones and a telephone system.
- If you are required to utilize an Approved Software System, you will need to purchase a computer system that meets the minimum system requirements of the Approved Software System you elect to utilize, as well as a high-speed connection to the Internet necessary to access that Approved Software System.
- You will need to purchase any upgrades or replacement computer equipment necessary to operate the Franchise Business.
5. Opening Advertising: $3,000 to $4,500
- You must advertise for recruitment and client generation. Where possible, these advertisements should be placed prior to the opening of the Franchise Business.
6. Vehicle Wrap Marketing: $5,000 to $6,000
- You must participate in Interim HealthCare’s Vehicle Wrap Marketing Program throughout the term of the Franchise Agreement. The Vehicle Wrap Marketing Program consists of the application of a vehicle “wrap” that prominently displays the Interim HealthCare name and promotes the services authorized by the Franchise Agreement.
- You will need to lease or purchase a vehicle that has been approved by Interim HealthCare for use in its Vehicle Wrap Marketing Program.
- For purposes of the estimates provided in the table above, Interim HealthCare assumes that you lease the vehicle. If leased, Interim HealthCare estimates that lease payments will be $200 to $300 per month.
- You may be required to make a deposit in connection with the vehicle lease. The cost of the vehicle wrap, including installation, is approximately $3,000.
7. Training Expenses: $1,500 to $2,500
- Interim HealthCare requires that you attend its initial training program. You will incur expenses associated with this initial training program.
- For this training program, Interim HealthCare provides instructors and instructional materials. You must pay for your transportation, lodging, food, and wages. The cost will depend on the distance you must travel to the training location and the type of accommodations you choose.
- If you are required to utilize an Approved Software System, and you require training beyond the initial training provided by the software provider at no charge (if any), you will also incur expenses associated with such training.
- You must also become a Certified Senior Advisor (“CSA”) by satisfactorily completing a CSA training course approved by Interim HealthCare prior to attending its initial training program. Interim HealthCare will pay the registration fees for the CSA training course, and you must pay all other expenses you incur in connection with the course, including the cost of travel, food, and lodging.
8. Start-up Supplies: $1,000 to $1,500
- You will need to purchase an initial supply of the printed materials needed for the operation of the Franchise Business as well as other general office supplies.
9. Insurance: $2,000 to $3,000
- You must obtain and maintain the types and initial minimum amounts of insurance described in the Franchise Agreement. The amount above represents estimated pre-opening expenses.
- In rare circumstances, you may need to pay the entire annual premium initially.
10. Utility Deposits: $150 to $500
- You may need to provide deposits for utilities. The amount of the deposits will vary depending upon the location of the Franchise Business and the practices of the utility companies. These deposits may be refundable.
11. Professional Fees: $1,500 to $5,000
- You may need to consult with an attorney, accountant, or other consultants. You may also want to seek accreditation from an approved accrediting body such as the Community Health Accreditation Program.
12. Business License: $1,000 to $4,000
13. Regulatory Fees: $1,000 to $2,000
14. Additional Funds: $51,850 to $103,500
- You will need to support on-going expenses, such as royalties, software fees, advertising expenses, office payroll and utilities, to the extent these costs are not covered by sales revenue.
- New businesses often generate negative cash flow. Interim HealthCare estimates that the amount stated will be sufficient to cover on-going expenses for the initial phase of the business, which Interim HealthCare calculates to be six months (please note that the amount above under “Real Property” represents an estimate of your rent for one month only).
- This is only an estimate, however, and there is no assurance that you will not need additional funds during or after this initial phase.
- When preparing these figures, Interim HealthCare relied on 48 years of experience in franchising, 15 years of experience in licensing, and experience with company-owned outlets which it operated prior to 2009.
15. Total: $125,500 to $198,500