Elect Home Care Franchise Cost & Fees
Date Incorporation: 2003
Franchising Since: 2004
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
|Training and Living Expenses While Training||$500||$ 1,000|
|Real Estate & Expenses||$0||$4,800|
|Miscellaneous Opening Costs including insurance deposit||$6,000 per year||$6,000 per year|
|Additional Funds 6-9 Months||$35,000||$40,000|
|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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