Homewatch CareGivers Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Franchise Fee: $49,500 to $75,750
- In determining the estimates in this chart, Homewatch CareGivers has assumed that you will purchase a Territory with a population of less than 35,001 Seniors to 50,000 Seniors. No discount is applied to the estimated Franchise Fee.
2. Telephone System: $250 to $500
- You must purchase at least two phones, or phone technology that affords your office the ability for your staff to handle multiple calls using a voice over Internet protocol (VOIP) telephone system. You must have an adequate number of telephone lines dedicated solely to your Franchised Business.
- The costs of purchasing a cell phone and setting up cell phone service are also included in these estimates.
- You will incur additional monthly charges for your telephone service, the first three months of which are included in the chart under Additional Funds.
3. Training Expenses: $2,000 to $5,000
- Tuition for up to three individuals attending Homewatch CareGivers’ initial training program is included in your initial franchise fee.
- You are responsible for all travel, lodging, and living expenses associated with in-person attendance at the initial training program and other training programs. You must also pay salaries of your employees who attend initial training.
4. Office Equipment and Computer Hardware and Off-the-Shelf Software: $1,060 to $2,060
- You will also need to acquire certain computer hardware and software that meets Homewatch CareGivers’ requirements.
5. Lease and Security Deposits: $3,000 to $6,000
- The estimate is for a location with approximately 500 to 1,500 rentable square feet.
- The cost per square foot of commercial space varies considerably depending on the location, type of property, and market conditions affecting commercial property.
- The estimate in the chart includes 3 months of rent; however your landlord may also require you to provide a security deposit of one month’s or two months’ rent. The estimate is the average across all franchisee locations.
- If you decide to purchase rather than lease the real estate, your initial investment cost may be substantially higher. If you already own the real estate to be used, the cost would be $0, although there may be property taxes payable.
6. Office Furniture: $1,000 to $2,000
- You may need to obtain desks, shelving, seating, copy machines, and other office furniture and equipment.
7. Insurance: $8,000 to $18,000
- Insurance cost will vary based on where your Franchised Business will be located, your prior experience with the insurance carrier, the loss experience of the carrier, and other factors.
- You should check with your insurance agent or broker regarding any additional insurance that you may wish to carry above Homewatch CareGivers’ stated minimums.
8. HIPAA Materials Fee: $125
9. Home Care Toolkit Fee: $1,000
10. Licenses, Permits, and Professional Fees: $500 to $8,000
- You must acquire all licenses and permits necessary to operate a Business in your state, county, and municipality.
- The cost of obtaining licenses or permits varies widely, from a small business registration, to accreditation fees.
- Homewatch CareGivers strongly recommends that you retain an attorney, accountant, or business advisor to assist you in establishing a Business and obtaining all necessary licenses and permits in every state, county, and municipality in your Territory.
11. Additional Funds for 3 Months: $25,000 to $45,000
- This amount is an estimate of your pre-operational expenses that are not listed above, as well as estimated additional funds necessary for the first three months of your Business operations.
- These expenses include payroll costs, including costs for an operations and/or marketing position, but do not include any draw or salary or personal living expenses for you, or the financing costs if you are borrowing money to fund your initial investment.
- This estimate also includes amounts incurred for three months’ rent, marketing and advertising, office expenses, insurance, taxes, royalties, costs for telephone service, payroll processing fees, credit card processing fees, and other operational expenses.
- You must rent approximately 500 to 800 square feet of commercial office space within your Territory and at a location approved by Homewatch CareGivers on or before your business opening date.
- Depending on state laws and regulations that may apply to your Homewatch CareGivers Business, additional time may be required to obtain licenses for your Business and your staff that could delay your opening and require you to have up to an additional $5,000 during this initial period. This additional $5,000 is included in the high number in the chart.
12. Totals: $91,435 to $163,435
- Homewatch CareGivers relied on its management’s analysis of the last 10 years of operations of both franchised and affiliate-owned Homewatch CareGivers Businesses to compile these estimates. These estimates do not include any salary or draw for you.
- Homewatch CareGivers strongly recommends that you have an additional $50,000 to $75,000 to invest in the Business in the first year.