Considering an Assisting Hands Home Care Franchise? Don’t Overlook These 22 Important Franchise Fees

Updated July 27, 2020.

If you are considering an Assisting Hands Home Care franchise, don’t get blindsided by these 22 important franchise fees (from the initial franchise fee, to the royalty fee, to 20 other fees found in Items 5 and 6 of Assisting Hands Home Care’s 2020 FDD).

1.  Initial Franchise Fee:  $35,000 to $48,000

• You must pay Assisting Hands an initial franchise fee (“Initial Franchise Fee”) of $48,000 when you sign the Franchise Agreement.

• If you purchase additional Franchises at the same time as your first Franchise, Assisting Hands will discount your Initial Franchise Fee to $40,000 for the second Assisting Hands Franchise and $35,000 for the third and each additional Assisting Hands Franchise you purchase. This discount is only available at the time of purchase of your first Assisting Hands Franchise.

• The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s) and is deemed fully earned by Assisting Hands once paid and is non-refundable.

• Assisting Hands participates in the VetFran program. Under this program, honorably discharged veterans of the United States armed forces receive a 10% discount on the Initial Franchise Fee. To receive the discount, you must submit a written request for the applicable discount at the same time that you submit all other information for Assisting Hands to prepare your franchise documents and you must be majority owner of the franchisee entity.

• If you are a Conversion Owner, Assisting Hands will offer a reduced Initial Franchise Fee for each conversion Assisting Hands Franchise you purchase, which may range from $0 to $40,000. The range of the fee will be based on experience, length of time in business, sales volume, growth, and future potential.

• Assisting Hands may finance a portion of the Initial Franchise Fee.

2.  Royalty Fee:  the greater of the Percentage Royalty or Minimum Royalty

• The “Percentage Royalty” is 5% of Gross Revenues if below $28,000; 4.5% of Gross Revenues if between $28,000 and $47,999; and 4% of Gross Revenues if above $48,000.

• The “Minimum Royalty” is $50 per week per Office during your first year of operations; $100 per week per Office during your second year of operations; and $200 per week per Office thereafter and throughout the remainder of the term.

• Due Date:  Due on Wednesday of each week.

• Based on “Gross Revenues” during the previous week.

• The Minimum Royalty shall begin being calculated 90 days after you complete the initial training program. If your Assisting Hands Business is in a state that requires you obtain a home health agency license, then it will begin the later of 90 days after you complete the initial training program or 90 days after you obtain your home health agency license, regardless of whether you have opened your Assisting Hands Business.

3.  National Advertising Fund Contribution:  the greater of Percentage Contribution or Minimum Contribution. The “Percentage Contribution” is 0.5% of your weekly Gross Revenues. The “Minimum Contribution” is $150 per month.

• Due Date:  Same as Royalty Fee.

• This fee will be used for a system-wide national advertising fund for Assisting Hands’ use in developing marketing materials, providing local marketing support, and building the Assisting Hands brand.

• Assisting Hands reserves the right to increase this fee to up to 3% of Gross Revenues upon 30 days’ written notice to you.

• The Minimum Contribution shall begin being calculated 90 days after you complete the initial training program. If your Assisting Hands Business is in a state that requires you obtain a home health agency license, then it will begin the later of 90 days after you complete the initial training program or 90 days after you obtain your home health agency license.

4.  Local Advertising Payment:  the difference between the amount you spent on local advertising each month and your required local advertising requirement

• Due Date:  As incurred.

• If you fail to meet your requirement on local advertising, you must pay Assisting Hands the difference between the amount you spent and the required advertising expenditure, which will be contributed to the national advertising fund.

5.  Local Marketing Cooperative:  established by cooperative members

• Due Date:  Established by cooperative members.

• The cooperative will establish rules approved by Assisting Hands. Each Assisting Hands Business gets one vote.

6.  Unauthorized Advertising Fee:  $500 per occurrence

• Due Date:  Upon demand.

• This fee is payable to the national advertising fund if you use unauthorized advertising in violation of the terms of the Franchise Agreement.

7.  Insurance:  you must reimburse Assisting Hands’ costs, plus a 20% administrative fee

• Due Date:  On demand.

• If you fail to obtain insurance, Assisting Hands may obtain insurance for you, and you must reimburse Assisting Hands for the cost of insurance obtained, plus 20% of the premium as an administrative cost of obtaining the insurance.

8.  Additional Training or Assistance Fee:  Assisting Hands’ then-current fee (currently approximately $150) per attendee per day, plus expenses

• Due Date:  As incurred.

• Assisting Hands provides initial training at no cost for up to three people, including you (if you are an individual) or your Principal Owner (if you are a legal entity), your General Manager, if applicable, or another member of your management team that Assisting Hands designates, but it may charge you for training additional persons, newly-hired personnel, refresher training courses, advanced training courses, and additional or special assistance or training you need or request.

• The fee amount will depend on the training required and experience level of the trainer.

9.  Convention Fee:  beginning on the 1st day of the month following completion of the initial training program, Assisting Hands’ then-current fee (currently $150 per month per Office, which amount shall be credited towards Assisting Hands’ then-current total annual fee, which is calculated when it conducts its annual convention)

• Due Date:  Due on the 1st day of each month.

• Payable to Assisting Hands to help defray the cost of your attendance at any annual convention that Assisting Hands chooses to hold. It is mandatory that at least one person attend the annual convention per Office. This fee is due regardless of whether or not you attend Assisting Hands’ annual convention in any given year.

• If a representative from your Assisting Hands Business is unable to attend the annual convention, $50 of the monthly convention fee paid towards the total annual fee for that conference will be refunded to you in a lump sum the month following the convention.

• This fee covers the cost of one hotel room for up to two adults per room for a minimum of three nights. Additional costs will be assessed for additional rooms or guests.

• The final balance owed and monthly fee amount depends on the number of persons who attend. Additional guests may attend the convention at Assisting Hands’ then-current fee.

10.  Supplier and Product Evaluation Fee:  costs of inspection (estimated to be approximately $100 to $500)

• Due Date:  As incurred.

• Payable if Assisting Hands inspects a new product, service, or proposed supplier nominated by you.

11.  Payment Service Fees:  up to 4% of total charge

• Due Date:  As incurred.

• If payment is made to Assisting Hands or its affiliates by credit card for any fee required, it may charge a service charge of up to 4% of the total charge.

12.  Interest:  lesser of 18% per annum or the highest commercial contract interest rate permitted by law

• Due Date:  As incurred.

• Payable if any payment due to Assisting Hands or its affiliates is not made by the due date. Interest accrues from the original due date until payment is received in full.

13.  Insufficient Funds Fee:  $100 per occurrence

• Due Date:  As incurred.

• Payable if any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event.

14.  Late Report Fee:  $100 per violation and $100 per week

• Due Date:  Your bank account will be debited for failure to submit any requested report within five days of request.

• Payable if you fail to submit any required report or financial statement when due.

• Fines collected are paid to Assisting Hands. You will continue to incur this fee until you submit the required report.

• Assisting Hands will provide you with two grace periods of one week per calendar quarter prior to charging this fee.

15.  Audit Expenses:  cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (Assisting Hands estimates this cost to be between $1,000 and $12,000)

• Due Date:  On demand.

• Payable if an audit reveals that you understated weekly Gross Revenues by more than 2%, or you fail to submit required reports.

16.  Indemnification:  all amounts (including attorneys’ fees) incurred by Assisting Hands or otherwise required to be paid

• Due Date:  As incurred.

• You must indemnify and reimburse Assisting Hands for any expenses or losses that it or its representatives incur related in any way to your Assisting Hands Business or Franchise.

17.  Management Fee:  $250 per day, plus costs and expenses

• Due Date:  As incurred.

• Payable if Assisting Hands manages the Assisting Hands Business because you are in breach of the Franchise Agreement. Assisting Hands has the right to manage the Franchise for up to 90 consecutive days per default.

18.  Legal Costs and Professional Fees:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Assisting Hands for any legal or accounting fees that it incurs as a result of any breach or termination of your Franchise Agreement.

• You must reimburse Assisting Hands if it is required to incur any expenses in enforcing its rights against you under the Franchise Agreement, or payable for any fees it incurs for any transfer that is not completed.

19.  Renewal Fee:  10% of the then-current Initial Franchise Fee for a single Assisting Hands Business, or $4,800 if Assisting Hands is not then offering franchises for sale

• Due Date:  At the time you sign the new Franchise Agreement.

• Payable if you qualify to renew your Franchise Agreement and choose to enter into a new Franchise Agreement.

20.  Transfer Fee:  50% of the then-current Initial Franchise Fee for a single Assisting Hands Business, plus costs of training

• Due Date:  $1,000 non-refundable deposit at time of transfer application submittal and the remaining balance of fee at time of approved transfer.

• Payable only in connection with the transfer of your Assisting Hands Business, a transfer of ownership of your legal entity, or the Franchise Agreement.

21.  Liquidated Damages:  will vary under the circumstances

• Due Date:  On demand.

22.  Broker Fee:  Assisting Hands’ actual cost of the brokerage commissions, finder’s fees, or similar charges

• Due Date:  As incurred.

• If you transfer your Assisting Hands Business to a third party or purchaser, you must reimburse all of Assisting Hands’ actual costs for commissions, finder’s fees, or similar charges.