Detailed Estimates of House Doctors Franchise Costs Based on Item 7 (Estimated Initial Investment) of House Doctors’ 2019 Franchise Disclosure Document
1. Initial License Fee: $19,900
2. Territory Fee: $39,900
- The Territory Fee is $39,900 per Territory.
- The franchisor reserves the right, in its discretion, to charge a higher or lower Territory Fee if the Territory is greater or smaller than the usual size of a Territory (the usual size is approximately 60,000 qualified households). The franchisor anticipates that the increase or decrease, if any, would be $0.66 per qualified household.
3. Computer Equipment: $2,000 to $4,000
- Computer equipment will include a desktop or notebook computer with Windows 7, 8, or 10 operating system, a CD/DVD drive, a color laser printer and a computer tablet (such as an iPad), and Microsoft Office Home and Business.
4. Service Vehicles: $2,000 to $4,000
- Your franchised business may begin with one or two service vehicles, depending upon the time of year it is opened and your geographical territory. As your franchised business grows, you will need to add additional service vehicles.
- The franchisor estimates the cost of purchasing and outfitting a service vehicle is $24,000 to $25,000 and the figures in the table reflect a deposit and three months payments for 1-2 vehicles.
5. Tools and Equipment: $400 to $1,000
- You may purchase tools and equipment such as ladders and hand tools from any approved supplier, which are listed in the operations manual, which also contains a list of the tools and equipment you will need to operate your franchised business.
6. Furniture and Office Equipment: $0 to $1,000
7. Initial Telephone, Bank, and Other Deposits: $500 to $1,000
- Your telephone service provider will typically require a normally refundable deposit for commercial service. You are required to have a separate business telephone land line for your House Doctors franchise and either an employee to answer your line or a manned answering service at all times during regular business hours.
8. Travel and Living Expenses While Training: $0 to $2,000
- The franchisor does not charge a 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 $0 to $2,000, depending upon the distance and method of travel and the availability and quality of your hotel accommodations and living expenses during the training program.
9. Real Estate and Improvements: varies
- You may operate your franchise from an office in your home if permitted by local zoning laws. You may also operate your franchise from rented office or warehouse space in a commercial or light industrial area, in which case you may incur expenses for improvements or other real estate costs. The estimated range in the chart does not include rent.
- You can anticipate requiring no more than 300 square feet for an office, a 100 square foot storage bay, and a parking space for each service vehicle. Based upon a combined range of $9.60 to $24.00 per square foot, you should expect to pay $4,800 to $12,000 per year for rent.
- You should expect the landlord to require the first month’s rent and a security deposit equal to one month’s rent.
10. Insurance: $1,500 to $3,000
- You must obtain and maintain the types and amounts of insurance coverage House Doctors requires. House Doctors estimates that the average annual cost for the required insurance coverage will be between $1,500 and $3,000.
- The premium is typically due prior to the effective date of the coverage unless your insurance company offers installment payment terms.
- You must also maintain workers’ compensation coverage and any other insurance that may be required by law in your territory. The cost for worker’s compensation coverage and other insurance is not included in the above chart.
11. Permits and Licenses: $100 to $1,000
- House Doctors is aware of the following states that require a license for performing some types of home repairs and/or remodeling: Arizona, Florida, California, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, Oregon, Utah, Virginia, Washington, and certain counties in Florida.
- There may be other states, counties, or municipalities that also require a license. The cost will vary from one locality to another.
12. Bookkeeping Services (3 months): $600 to $750
- You will be required to use a bookkeeping service designated by House Doctors for at least your first 12 months of operation.
13. Additional Funds (3 months): $32,000 to $52,000
- You should have approximately $32,000 to $52,000 of additional funds for such items as payroll expenses, initial supplies, and operating expenses for the first 3 months of operation. These funds also include $3,000 per month for the first three months of required local advertising spend.
- In formulating the amount required for additional funds, House Doctors relied upon its experience and that of its predecessor in franchising home repair, maintenance, and remodeling businesses since 1995. These figures are estimates and House Doctors cannot guarantee that you will not have additional expenses starting the business.
14. Total: $98,900 to $129,550
- The total figure listed above does not include compensation for your time or labor. Neither does the total figure take into account any finance charges, interest, debt service, or other costs which you may incur to finance all or any portion of your investment.