Amada Senior Care Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

1.  Initial Franchise Fee:  $55,000

• The Initial Franchise Fee is collected by and payable to Amada.

2.  Lease or Rent:  $1,500 to $4,000

• You will need approximately 300 to 800 sq. ft. of office space. Rates may vary depending on different regions of the country. You may need to have 2 offices if your Designated Territory crosses into multiple states.

• This estimate includes rent for the first 3 months and a deposit of first and last month’s rent.

• If a landlord is paying for some of the improvements to the leased space, they may be amortizing that expense in the form of additional rent.

• Payments will be made directly to the landlord according to the terms of the lease.

• The site for your Amada Senior Care Business is subject to Amada’s approval. You should consult with your own attorney regarding the lease and related matters.

3.  Utility Deposits:  $700 to $1,100

• This item includes utility deposits paid to various communications and utility companies.

4.  Furniture, Office Equipment, and Supplies:  $1,500 to $5,000

• The low estimate includes the cost of 1 desk, 1 office chair, 2 guest chairs, telephone equipment, office supplies, and other items necessary for furnishing your site.

• The high estimate includes the cost of 2 desks, 2 office chairs, 4 guest chairs, a conference room table, 6 conference room chairs, telephone equipment, office supplies, and other items necessary for furnishing your site.

5.  Vehicle:  $0 to $3,000

6.  Vehicle Wrap (Optional):  $0 to $3,500

• If you choose to place signage on the vehicle you use in connection with your Amada Senior Care Business, it is subject to Amada’s approval and design standards.

7.  Required Technology:  $1,500 to $5,500

• This estimate includes the cost associated with Amada’s current requirements, which include one computer, monitor, router and other network accessories, printer, fax, scanner, basic software, virus software, and firewall software.

• The cost of the software accompanying the hardware purchase is included in this estimate.

8.  Initial Training:  $800 to $3,000

• The initial training program is tuition-free for you and 2 other people associated with your Amada Senior Care Business and includes the Start-up Business Training Program and the Pre-opening Training Program.

• Amada currently anticipates the expenses you will incur in connection with attending the initial training program to be $200 per day per person in attendance, with a minimum spent of $800. The amount may vary based on the type of accommodations you select, dining preferences, travel preferences, and differences in compensation arrangements with your employees.

9.  Grand Opening Advertising:  $1,500

• In connection with opening your business, you must spend at least $1,500 on grand opening promotion and advertising before and during the first 60 days following the opening date of your Amada Senior Care Business.

10.  Marketing Materials and Business Development:  $4,000 to $7,000

• This estimate includes a 3 to 6-month supply of brochures, business cards, and other marketing materials.

• Regardless of where you operate your Amada Senior Care Business, Amada anticipates that you will spend approximately $3,500 to $5,000 on non-customizable pre-opening marketing materials. Amada also estimates that you will spend between $500 and $2,000 on networking with potential client referral sources.

11.  Insurance Excluding Workers’ Compensation Insurance:  $1,000 to $2,000

• This estimate represents your estimated insurance costs (excluding workers’ compensation insurance) for the first 3 months you operate your Amada Senior Care Business.

• As outlined in Section 16 of the Franchise Agreement, you must procure and keep in force insurance policies in such amounts and on such terms, as prescribed by Amada in the Operations Manual, by an insurance company acceptable to Amada at all times during the term of the Franchise Agreement.

• You must also procure and keep in force insurance policies in such amounts and on such terms as may be required by statute or rule of the state and county in which the Amada Senior Care Business is located.

• You must obtain such policies within 30 days after signing the Franchise Agreement. Your failure to obtain insurance constitutes a material breach of the Franchise Agreement entitling Amada to terminate the Franchise Agreement or exercise any or a combination of the other default remedies provided in Section 13 of the Franchise Agreement.

12.  Workers’ Compensation Insurance:  $500 to $3,000

• This estimate represents your estimated workers’ compensation insurance costs for the first 3 months you operate your Amada Senior Care Business. If you operate in multiple states, your estimate for workers’ compensation insurance will likely be at the higher end of the range.

13.  Legal and Accounting Fees:  $900 to $5,000

• This estimate represents your costs for bookkeeping and for any legal expenses associated with creating a corporate entity for the Amada Senior Care Business.

14.  Licenses and Permits:  $1,500 to $12,000

• This estimate represents any fees or payments for required licenses or permits, including medical and staffing licenses. It is solely your responsibility to obtain and maintain all licenses and permits required for you to operate your Amada Senior Care Business.

• State rules vary on medical and staffing licensure. Operating in multiple states likely will increase the number of licenses and permits that are required. You should retain legal counsel and a local consultant specialized in obtaining and maintaining the applicable licenses and permits.

15.  Loan Packaging Fee:  $0 to $4,000

• This estimate is based on initial borrowing costs associated with obtaining a loan – either conventional or from the Small Business Administration – for funding your Amada Senior Care Business. The low estimate assumes you do not obtain a loan.

16.  Wages and Compensation:  $0 to $65,000

• At your option, you may hire staff to assist you in the operation of your Amada Senior Care Business.

17.  Additional Funds for 3 Months:  $25,000 to $72,000

• This estimate is based on Amada’s survey of franchisees regarding additional funds expended during their pre-opening phase and initial 3 months of operations.

• The low estimate represents estimated expenses to maintain minimal operations without any sales during the initial 3-month period. The high estimate represents the estimated expenses needed to support operations functioning at high capacity.

• Your costs will depend on how closely and quickly you follow Amada’s recommended methods and procedures to get your Amada Senior Care Business fully operating and serving clients, and at what level of capacity you are operating during the pre-opening phase and initial 3-month period of operations.

• These estimates do not include: any allowance for a draw or salary to you or other owners of the franchise; payments of fees; or payments to a bank or financing company on any loan that you may obtain to finance the cost of purchasing the franchise or other development-related costs.

18.  Total:  $95,400 to $251,600