Synergy HomeCare Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

For a Synergy HomeCare Franchised Business With One Full Territory

• A full territory has at least 20,000 people age 65 or older.

1.  Franchise Fee:  $50,000

2.  Real Estate/Rent:  $1,285 to $5,885

• You must lease or otherwise provide a suitable facility for the operation of the Franchised Business. You will need approximately 250 square feet of space in a shared office or executive office environment. Your lease costs can vary based upon variances in square footage, cost per square foot, and required maintenance costs.

• The franchisor assumes that you will have to pay the first month’s rent and a security deposit equal to one month’s rent in advance.

• The rent you pay is typically not refundable, but your security deposit may be under certain circumstances.

• This covers rent for 3 months.

3.  Utility Deposits:  $0 to $320

• If you are a new customer of your local utilities, you may have to pay deposits with local utilities for services such as electric, telephone, gas, and water. The deposit will vary depending upon the policies of the local utilities.

4.  Leasehold Improvements:  $0 to $1,600

• You may need to make certain improvements to your office space to accommodate your Franchised Business or to comply with the franchisor’s standards and specifications.

• The cost of leasehold improvements will vary based upon size, condition, and location of the premises; wage rates; and material costs.

5.  Furniture, Fixtures, and Equipment:  $535 to $3,200

• You will be required to purchase or lease office furniture and any equipment necessary for providing the various services offered by Synergy HomeCare Businesses.

• Although some of these items may be leased, the range shown represents the actual purchase price.

6.  Software:  $802 to $1,070

• You must purchase a license to use scheduling software from Synergy or its approved vendor. The franchisor will pay the initial start-up license fee and training fee ($500) for you to use the scheduling software. You must pay the vendor the monthly usage fee for the scheduling software. The current monthly usage fee ranges from $150 to $500 per month, and is subject to change by the software vendor.

• You must also purchase QuickBooks (the franchisor recommends QuickBooks online), the cost of which will vary depending on competition among suppliers, among other things.

7.  Computers and Printer:  $1,070 to $3,745

8.  Insurance (including Fidelity/Crime Coverage):  $3,210 to $6,420

• You must secure policies for the following types of insurances:  “all-risk” property, business interruption, general liability, automotive liability, professional liability, employment practice liability, wage and hour insurance, worker’s compensation, cyber liability, coverage under the Franchise Agreement’s indemnity provisions, and a fidelity/crime insurance (or the equivalent), as required by Section 15 of the Franchise Agreement or any other insurance as required law.

• Typically, you will pay quarterly for insurance (including fidelity/crime insurance) coverage. The estimated cost is for the first 3 months of insurance (including fidelity/crime insurance) coverage.

9.  Signage:  $535 to $2,140

• This range includes the cost of all signage used in the Franchised Business, which may include a plaque or lettering for an office door, and magnetic signs or custom painting on service vehicles, or auto wraps.

10.  Office Equipment and Supplies:  $802 to $3,210

• You mast purchase general office supplies, including stationery, business cards, and typical office equipment, such as a computer and printer.

11.  Training:   $1,070 to $2,675

• The cost of initial training is included in the Franchise Fee, but you are responsible for transportation and expenses for food and lodging. The franchisor has the right, but not the obligation, to offer remote training.

12.  Licenses and Permits:  $0 to $5,350

• Local government agencies typically charge for such things as business licenses. Depending on your local laws, you may also be required to obtain licenses to perform certain services such as in-home companionship, homemaking, personal care, or child care, for example.

13.  Legal and Accounting:  $535 to $3,210

• You will need to use the services of an attorney, an accountant, and other consultants to assist you in establishing your Franchised Business.

14.  Legal and Compliance Toolkit:  $1,000

• The franchisor has partnered with a premier provider of federal and state compliance guidance regarding owning a home care agency. The information covers federal and state laws, sample agreements, model policies and forms, a survey on state laws on home care companions and domestic workers, presentations on wage and hour issues, agency investigations, and other areas impacting the industry, guidelines to help small business comply with federal, state, and local employment laws.

15.  Opening Inventory:  $4,237 to $6,037

• You will need to purchase materials for your grand opening. This includes (1) signing up for an A/I chatbot for lead generation on your local microsite through one of the franchisor’s approved vendors, (2) investing in an incremental web-based display campaign through the franchisor’s approved vendor, (3) purchasing pre-opening Marketing Kits from the franchisor’s approved vendor, (4) purchasing at least one car wrap prior to opening from the franchisor’s approved vendor and having it installed by a vendor of your choice, and (5) hosting a grand opening ceremony.

16.  Dues and Subscriptions:  $0 to $535

• The franchisor recommends, but you are not required, to join local organizations such as the Chamber of Commerce for networking and marketing purposes.

17.  Additional Funds – 3 Months:  $4,205 to $34,515

• This estimates additional funds necessary for the first 3 months of your business operations, and does not include an owner’s salary or personal or living expenses.

18.  Total:  $69,286 to $130,912

• In compiling the chart, the franchisor has relied on its 17 years of experience in the industry.

For a Synergy HomeCare Franchised Business With Two Full Territories

• Two full territories have at least 40,000 people age 65 or older.

• Total:  $109,286 to $170,912