Detailed Information on Assisting Hands Home Care’s Initial Franchise Fee, Royalty Fee + 22 Other Fees (Items 5 and 6, 2022 FDD)
1. Initial Franchise Fee: $45,000 to $55,000
- You must pay Assisting Hands an initial franchise fee (“Initial Franchise Fee”) of $55,000 when you sign the Franchise Agreement.
- You may purchase up to two additional Franchises at the same time as your first Franchise. Assisting Hands will discount your Initial Franchise Fee to $50,000 for the second Assisting Hands Franchise and $45,000 for the third 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.
- Assisting Hands offers a reduced Initial Franchise Fee to Conversion Owners 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 Revenue if below $48,000; 4.5% of Gross Revenue if between $48,000 and $95,999; and 4% of Gross Revenue if above $96,000.
- 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 Revenue” during the previous week.
- The Minimum Royalty will start 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 (i) 0.5% of Gross Revenue (“Percentage Contribution”); or (ii) the Minimum Contribution. The “Minimum Contribution” is currently $150 per month.
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- Due Date: Due on the first day of each month.
- 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 Revenue upon 30 days’ written notice to you.
- The Minimum Contribution will start 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.
- Assisting Hands can raise the Minimum Contribution upon 30 days written notice to you.
- Advertising contributions are payable monthly.
4. Convention Fee: currently, $2,400 per year billed in monthly installments of $200. If the fee has not been paid in full because you did not pay the fee for the entire preceding 12-month period, the unpaid balance will be due in your final monthly installment.
- Due Date: Due on the first 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. At least one person must 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 you are unable to attend the annual convention, up to $600 ($50 per month paid actually by you for that convention) will be refunded to you in a lump sum the month following the convention.
- You must pay your own travel costs.
- 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.
5. 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.
6. Local Marketing Cooperative: established by cooperative members
- Due Date: Established by cooperative members.
- The cooperative will establish rules approved by Assisting Hands.
7. 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.
8. Technology Fee: not currently charged. Assisting Hands may charge up to $1,000 per month.
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- Due Date: Due on the first day of each month.
- If charged, this fee will cover certain technologies used in the operation of your Assisting Hands Business.
- Assisting Hands reserves the right to license, sublicense, and create software and technology that its franchisees must pay for and use.
9. 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.
10. 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.
11. 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.
12. 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.
13. Interest: lesser of 18% per annum or the highest commercial contract interest rate permitted by law
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- 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.
14. 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.
15. 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.
16. 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 Revenue by more than 2%, or you fail to submit required reports.
17. 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 (including its Area Representative) incur related in any way to your Assisting Hands Business or Franchise.
18. 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.
19. 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.
20. Renewal Fee: 10% of the then-current Initial Franchise Fee for a single Assisting Hands Business
- 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.
- If Assisting Hands is not offering franchises at the time of your renewal, the renewal fee will be 10% of the Initial Franchise Fee in Assisting Hands’ most recent Franchise Disclosure Document.
21. 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.
- If Assisting Hands is not offering franchises at the time of your renewal, the transfer fee will be 10% of the Initial Franchise Fee in Assisting Hands’ most recent Franchise Disclosure Document.
22. Territory Infringement Fee: $5,000 to Assisting Hands, plus all Gross Revenue to the impacted franchisee
- Due Date: On demand.
- If you serve a client in a territory of another franchisee without their written consent or are otherwise in violation of your territorial restrictions, you agree to pay all Gross Revenue from the services and products sold in connection with your Assisting Hands Business to the impacted franchisee, and pay a $5,000 fee to Assisting Hands (the “Territory Infringement Fee”).
- Assisting Hands has the right to terminate your Franchise Agreement upon the second occurrence.
23. Liquidated Damages: will vary under the circumstances
- Due Date: On demand.
24. 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.
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