Detailed Information on ComForCare Home Care’s Initial Franchise Fee, Royalty Fee + 33 Other Fees (Items 5 and 6, 2023 FDD)
1. Initial Franchise Fee: Standard Offering: $57,000; Reduced Initial Fee Offering: $29,500
- Standard Offering: At the time you sign the Franchise Agreement, you will pay ComForCare an initial franchise fee of $57,000. The initial fees for the Standard Offering are uniformly imposed.
- Reduced Initial Fee Offering: At ComForCare’s discretion, it may offer you the right to purchase a ComForCare Franchise under its Reduced Initial Fee Offering. If you are approved, at the time you sign the Franchise Agreement, you will pay ComForCare an initial franchise fee of $29,500. The initial fees for the Reduced Initial Fee Offering are uniformly imposed.
- In exchange for the payment of a reduced initial franchise fee, you will be required to pay ComForCare a higher ongoing Royalty Fee – 6% to 7% of your Gross Sales (or certain minimum fees, whichever is greater) depending on your month of operation than the Standard Offering ongoing Royalty Fee – 5% of your Gross Sales (or certain minimum fees, whichever is greater).
- ComForCare offers a 20% discount off the initial franchise fee for the first single unit purchased to individuals who qualify under the Veterans Transition Franchise Initiative, known as “VetFran”. This discount does not apply to Conversion Franchises.
2. Multiple-Unit Development: see below
- At ComForCare’s discretion, it may offer to qualified candidates the right to purchase more than one single franchise unit. Qualified candidates who are allowed to purchase additional units will be required to sign a separate Franchise Agreement for each franchise they purchase.
- Standard Offering: Approved purchasers of two single units will pay an initial franchise fee of $104,500 ($57,000 for the first unit purchased and $47,500 for the second unit purchased). Approved purchasers of three single units will pay an initial franchise fee of $147,000 ($57,000 for the first unit purchased; $47,500 for the second unit purchased; and $42,500 for the third unit purchased). Any additional units purchased thereafter will be an additional $42,500 each. The initial fees for the Standard Offering are uniformly imposed.
- Reduced Initial Fee Offering: Approved purchasers of two single units will pay an initial franchise fee of $59,000 ($29,500 for each unit purchased). Approved purchasers of three single units will pay an initial franchise fee of $88,500 ($29,500 for each unit purchased). Any additional units purchased thereafter will be an additional $29,500 each. The initial fees for the Reduced Initial Fee Offering are uniformly imposed.
- You may not purchase multiple units from both offerings. Any and all multiple units must be either via the Standard Offering or the Reduced Initial Fee Offering.
3. Conversion Single Unit Development: ComForCare may, but is not obligated to, reduce the initial franchise fee for a converted franchise
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- At ComForCare’s discretion, it may offer qualified candidates the right to purchase and convert a currently operating independent home care business into a ComForCare franchise (“Conversion Program”). ComForCare may, but is not obligated to, reduce (or waive) the initial franchise fee for a converted franchise based on such factors as the length of time you have been in business and revenue being generated,.
4. Royalty Fee: Standard Offering: 5% of the Gross Sales with a Minimum Royalty Fee per month; Reduced Initial Fee Offering: 6% to 7% of the Gross Sales with a Minimum Royalty Fee per month depending on your month of operation
- Due Date: 10 days after bi-weekly billing period (or as updated in operational manuals).
5. General Marketing Fee: 1% of Gross Sales with a Minimum General Marketing Fee per two-week billing period
- Due Date: 10 days after bi-weekly billing period (or as updated in operational manuals).
- Payable to ComForCare.
6. National Advertising Fee: 1% of Gross Sales with a Minimum National Advertising Fee per two-week billing period
- Due Date: 10 days after bi-weekly billing period (or as updated in operational manuals).
- ComForCare reserves the right to increase this fee to 2% of Gross Sales with a Minimum National Advertising Fee per two-week period with 60 days written notice.
7. Client Management Software Fee: currently, $450 per month
- Due Date: You will begin paying this fee once you are assigned your unique login information. Thereafter, this fee is due on the 15th of each month (or as updated in operational manuals).
- This fee covers the cost associated with the client management software which is utilized in the operation of your Franchised Business.
- ComForCare reserves the right to increase this fee with 30 days written notice.
8. Technology Fee: $100 per month
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- Due Date: You will begin paying this fee the earlier of the first use of any of the software or when you open your Franchised Business. Thereafter, this fee is due on the 15th of each month (or as updated in operational manuals).
- This fee covers the costs associated with the technologies that are utilized in the operation of your Franchised Business, such as, but not limited to: learning management systems, applicant tracking software, and client satisfaction software.
9. Telehealth Fees: varies but may be up to $500 per month
- Due Date: Monthly.
- Payable to third-party vendors.
- You will be required to participate in ComForCare’s approved Telehealth programs. ComForCare reserves the right to increase this fee.
10. Electronic Claims Management Fee: varies
- Due Date: Invoiced.
- Payable to third-party vendors.
11. Google Workspace Fee: $16.50 per month, per Google Workspace account
- Due Date: You will be assigned a Google Workspace account within two weeks of the execution of your Franchise Agreement with its associated fees beginning upon its assignment. Thereafter, this fee is due on the 15th of each month (or as updated in operational manuals).
- Payable to ComForCare.
- You and your key employees are required to utilize Google’s Workspace as your email platform.
- At the time of this disclosure, this fee is $16.50 per month per Google Workspace license (plus applicable taxes). ComForCare reserves the right to increase this fee with 30 days written notice.
12. essentialALZ Exam: currently, $55 per exam, per person
- Due Date: Month incurred.
- Payable to ComForCare.
13. Local Marketing Spend: 2% of Gross Sales
- Due Date: Month incurred.
- Payable to third-party vendors.
14. Accounting Software Fee: varies
- Due Date: Invoiced.
- Payable to approved vendor.
- ComForCare currently requires that you purchase or lease the latest version of the QuickBooks Online (“QBOE”) Business Package.
15. Protected Territory Change Fee: $5,000
- Due Date: At the time of change.
- In the event you unilaterally request that ComForCare change your Protected Territory from the one granted to you in the Franchise Agreement/s. ComForCare is not obligated to grant such a request.
16. Annual Conference Fee: up to $1,000 per person for the first two attendees; up to $500 for each additional attendee
- Due Date: Upon event registration.
17. Annual Conference Absentee Fee: $2,500
- Due Date: 10 days after Annual Conference.
18. Regional Meeting Fee: up to $350 per person
- Due Date: Upon event registration.
19. Regional Meeting Absentee Fee: $750
- Due Date: 10 days after Regional Meeting.
20. Training for Additional Persons: $2,000
- Due Date: Seven days prior to Training.
- ComForCare will provide, at your request, additional training after you have opened for any new key employees.
21. Supplemental Training at Your Office: $300 per day, plus expenses
- Due Date: Seven days prior to Training.
- This expense is for any optional training you may request.
22. Renewal Fee: $7,500
- Due Date: When you sign the then-current Franchise Agreement.
23. Independent Agency Acquisition Fee: $20,000
- Due Date: Upon purchase of independent agency.
- Payable to ComForCare at Independent Agency Acquisition Closing.
24. Business Transfer Fee: $10,000 at the time of transfer if the transfer involves 50% or more change of ownership. If the transfer involves less than a 50% change of ownership, the transfer fee will be calculated based upon the percentage of ownership change.
- Due Date: Prior to Training.
- Payable to ComForCare at Business Transfer Closing.
25. Business Transfer Training Reserve: $10,000
- Due Date: Upon execution of new Franchise Agreement.
- Payable to ComForCare at Business Transfer Closing.
26. Third-Party Broker Listing Fee: varies by broker
- Due Date: Upon execution of new Franchise Agreement by buyer.
- Payable to ComForCare or escrow agent.
27. Examination/Audit of Your Records and Under Reporting Penalty: $300 per day per person, plus expenses, full amount of any underpayment, $5,000 penalty, and interest on any underpayment
- Due Date: Upon demand.
- Cost of audit is payable only if the understatement exceeds 2%.
28. Customer and Location Infraction Fee: $2.00 per billable hour, plus a penalty of $5,000
- Due Date: Upon demand.
29. Client Resolution Fee: greater of $500 or $50/hour
- Due Date: Upon demand.
30. Benchmarking Non-Participation Fee: $1,000
- Due Date: 10 days after benchmarking deadline.
- Benchmarking non-participation fee payable only if you do not participate in the survey.
31. Unapproved Services Fee: 1% of Gross Sales
- Due Date: Monthly.
- Payable to ComForCare in the event you utilize its Proprietary Marks in the provision of unapproved services.
32. Late Payment Fee: up to $150 per week for each individual payment past due
- Due Date: Upon demand.
- Payable to ComForCare.
- Late fees begin from the date payment was due, but not received, or date of underpayment.
33. Late Reporting Fee: up to $150 per report per week for each required report that has not been submitted
- Due Date: Upon demand.
- Payable to ComForCare.
- Late fees begin from the date the report was due, but not received.
34. Interest: lesser of 18% or the maximum amount allowed by state law
- Due Date: Upon demand.
- Payable on any fees or payments due to ComForCare. The interest rate is per annum, calculated daily.
35. Reimbursement of Monies Paid by ComForCare on Your Behalf: varies
- Due Date: Upon demand.
- For payments you fail to make and that ComForCare makes on your behalf.
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