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Elect Home Care Franchise Cost & Fees

Date Incorporation: 2003

Franchising Since:  2004

Headquarters: Tennessee

Description: Elect Home Care, L.L.C., provides non-medical care and companionship for elderly people who desire to remain in their homes, but who require assistance, supervision, housework and/or companionship.

Franchise Offer: The franchise offered is for the operation of a single non-medical companionship and domestic care services business utilizing the Elect Home Care Business formats, systems, standards and procedures.

Financial Assistance: The franchisor will not offer direct or indirect financing for fees, notes, leases, or obligations.

Training and Assistance: The franchisee and any proposed manager must attend an initial training program before the opening of the franchise. The program lasts approximately four to seven days. Classroom hours are based in Memphis, Tennessee, and On-the-Job hours at a Franchise location.

Territory: The franchisee will be awarded an exclusive territory. The franchisor will not license the right to open an Elect Home Care Franchise within the exclusive territory to another franchisee during the term of the franchise agreement

Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for additional terms of 10 years.

Obligations and Restrictions: The franchisor recommends, and may require, that the franchisee personally supervises the Elect Home Care Franchise. If the franchisee does not personally supervise the franchise, they must employ a manager who must be responsible for the full-time, on-premises supervision of the business and who has successfully completed the  initial training program.

Total Number of Units: 5 outlets at the end of 2007

Total Number of franchises Units: 6 franchised outlets at the end of 2007

Investment Tables:

Initial Investment:

 Expenditures    Low  High
 Initial Fee   $18,500  $18,500
 Training and Living Expenses While Training   $500   $ 1,000
 Real Estate & Expenses   $0   $4,800
 Equipment   $1,500   $4,000
 Signs   $0   $1000
 Miscellaneous Opening Costs including insurance deposit   $6,000 per year   $6,000 per year 
 Inventory   $3,000   $6,000
 Advertising 6-9month   $5,000   $6000
 Additional Funds 6-9 Months   $35,000   $40,000
 Total   $67,000   $87,000

Ongoing fees:

Name of Fee   Amount 
 Royalty Fee   4.5% of Gross Sales
 Local Advertising and Marketing   Required to spend a minimum of 1 % of Gross Sales on local advertising. The l% is averaged on an annual basis.
 Open Advertising Campaign   Not less than $5,000.
 Initial Training Fee   $0
 Initial Training for Additional Persons: Per person   $200 per day plus expenses - hotel, food, etc.
 Supplemental Training at Office   $200 per day plus expenses
 Additional Training, Conventions and Conferences   Costs associated with attending mandatory training sessions, conventions and other meetings; Annual Conference registration fee of $500 is charged irrespective of attendance.
 Transfer Fee   50% of the then current Franchise Fee.
 Audit Fee   Cost of audit, including travel expenses, plus interest on amount of underpayment
 Late Fees & Interest   A $50 fee will be charged for the first instance of a late report or payment; a $75 fee will be charged for each late report or payment thereafter.
 Renewal Fee   15% of the then current Franchise Fee.
 Franchise Fee for additional Exclusive Territories   For second exclusive territory: 75% of the then current initial fee charged by EHC; for third exclusive territory: 50% of the then current initial fee

Date of FDD:
Feb 2008

The above information has been taken from the UFOC/FDD of Elect Home Care
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