Right at Home Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $49,500
- The Initial Franchise Fee is $49,500. The Initial Franchise Fee is deemed fully earned and nonrefundable upon payment.
2. Real Estate/Rent: $2,550 to $6,150
- You must provide a location other than a personal residence from which to operate the Franchised Business, and the open office must exist solely and exclusively for the operation of the Franchised Business.
- Normally, space is obtained on a leasehold basis.
- The floor area recommended for the Franchised Business is approximately 600 to 800 square feet.
- The estimate for rental property represents a high-end annual lease rate of $23 per square foot for 800 square feet of space. The low-end estimate represents an annual lease rate of $18 per square foot for 600 square feet of space.
- Additionally, there may be lease acquisition costs in the nature of deposits.
- It is extremely difficult to estimate lease acquisition costs because of the wide variation in these costs among various locations. Right at Home will not assist in financing this expenditure.
3. Rent Deposits: $0 to $4,300
- A rent deposit may be required by your landlord.
4. Leasehold Improvements: $0 to $3,000
- Minimal leasehold improvements are generally required before operation. These costs again vary based on the size of the business and requirements of a particular landlord, depending upon whether or not the improvements are capitalized as part of the lease.
5. Insurance: $3,000 to $7,000
- This estimate is for estimated first year premiums of all insurance except office contents and workers’ compensation insurance, which vary by location.
6. Furniture and Fixtures: $2,700 to $6,000
- The range represents the approximate costs associated with acquiring the furniture, including desks, chairs, and shelves.
7. Computer Hardware and Software: $2,000 to $7,000
- The range represents the approximate costs associated with acquiring the franchisor-required computer hardware, designated software (“Designated Software”), and high-speed internet service.
8. Other Office Equipment and Supplies: $1,000 to $6,000
- The range represents the approximate costs associated with acquiring basic office supplies, phone system, and fax/copy machine.
9. Training: $3,000 to $8,000
- You are responsible for arranging transportation and paying the expenses for meals and lodging for any persons attending Right at Home’s RightStart Training Program and its Home Improvement Annual Conference (“HIAC”) as described below.
- The amount expended will depend on the distance you must travel and the type of accommodations you choose.
- New franchisees are currently required to attend the HIAC. Right at Home may waive this requirement during your first year of operation if the date you are scheduled to open your Franchised Business is within 30 days of the scheduled HIAC.
- For your first HIAC, Right at Home will pay the attendance fee for up to two people to attend. If you bring more than two people, you will pay the attendance fee, which will not exceed $500 per person to attend.
- The low estimate does not include your attendance at the HIAC.
- The high estimate contemplates attendance by two people traveling to Right at Home’s headquarters or other designated location to attend Right at Home’s RightStart Training Program. The high estimate also includes the annual conference fee and travel expenses for one person to attend the HIAC.
- Your RightStart Training Program also includes up to 2 additional days of on-site assistance.
10. Initial Opening Marketing: $750 to $4,350
- The range represents the approximate costs associated with promoting the opening of your location.
11. Permits and Licenses: $200 to $2,000
- State and local government licensing and registration fees vary considerably from state to state and you must check into and verify the amount of the fees.
12. Professional Fees: $300 to $3,500
- This range represents the approximate costs associated with attorney and CPA fees.
13. Signage: $0 to $4,000
- This range includes the cost of all requisite signage used in the Franchised Business.
14. Additional Funds for 3 Months: $17,000 to $40,000
- Such amounts are the minimum recommended levels to cover operating expenses, including employees’ salaries for three months. However, Right at Home cannot guarantee that such an amount will be sufficient.
- The amounts do not include money for franchise owner’s compensation.
- Additional working capital may be required if sales are low or fixed costs are high.
15. Total: $82,000 to $150,800
- In compiling this list of expenditures, Right at Home relied on its experience involving Franchised Businesses and data from a sampling of recently opened Franchised Businesses.
- The amounts shown are estimates only and may vary for many reasons including the size of a Franchised Business, the capabilities of your management team, where you locate your Franchised Business, and your business experience and acumen.