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Home Instead Franchise Cost & Fees

Date of Incorporation: 1994
Franchising Since: 1995
Headquarters: Omaha, Nebraska

Business Description: Home Instead Senior Care businesses provide in-home non-medical care and companionship services for the elderly. The franchisor is Home Instead, Inc.

Franchise Offer: Home Instead, Inc. franchises the operation of a business providing in-home non-medical companionship and domestic care services such as companionship, personal and specialized services, including hospice and Alzheimer’s care for the elderly utilizing its formats, systems, standards and procedures and identified by certain trademarks, domain names, service marks and other commercial symbols.

Financial Assistance: Neither the franchisor nor any agent or affiliate, offers direct or indirect financing , guarantees any notes, leases or other obligations, or has any practice or intent to sell, assign or discount to a third party all or part of any financing arrangements.

Training and Assistance: The initial training program must be successfully completed by franchisee and by the manager and is conducted in Omaha, Nebraska or at another location. During the initial training program, franchisor will arrange and pay for up to five nights of hotel accommodations for franchisee and the other person attending the initial training program. The franchisee must attend and successfully complete the initial training program and open Home Instead Senior Care business within 30 days after the date of the Franchise Agreement. During the first six months of operation of the Franchised Business, the franchisor will spend a minimum of one day at the franchisee’s office to provide ongoing operations support and assistance. The franchisor will schedule national and other meetings periodically throughout the term of the Franchise Agreement for franchisees.

Territory: The franchisee is granted the right to operate a Home Instead Senior Care business within a defined geographic area with an estimated minimum population of 10,000 people over the age of 65 years. The franchisee’s Exclusive Area will be described as a municipality, portion of a municipality, county or metropolitan statistical area or as described in a map. The franchisor will not license the right to another franchisee to open and operate a Home Instead Senior Care business nor will operate a Home Instead Senior Care business within the Exclusive Area.

Term of Agreement and Renewal: The term of Franchise Agreement is 10 years. The right to renew is subject to conditions and to the discretionary approval of Home Instead. If the franchisee is in good standing, the franchisee may be granted the right to renew for a term equal to the then customary initial term granted under Home Instead's then-current Franchise Agreement.

Obligations and Restrictions: The franchisor requires that either the franchisee personally supervises the franchise business, or the franchisee or his or her corporation, partnership or Limited Liability Company must employ a manager who must be responsible for the full-time on-premises supervision of the business and who has successfully completed the Home Instead Senior Care initial training program. The franchisor may require the manager to have an ownership interest in a corporation, partnership or limited liability company which owns the franchise. The franchisee must offer and provide all the approved non-medical services. Approved services will include companionship services, home helper services and personal care services, and will exclude any medical service, as determined and defined by the franchisor. Franchisees are prohibited from soliciting or from providing services to customers outside their Exclusive Area except as may be authorized by the franchisor in the Operations Manual or as authorized by written communication by the franchisor or franchise owners with rights to that area.

Estimated Number of Units: 1,045

Investment Tables:
Initial Investment for New Centers
Name of Fee Low High
Initial Fee $48,000 $48,000
ClearCare Software – 3 months $8.25 per active client per month; $120 per month minimum, or $360 minimum for 3 months
Training and Living Expenses while Training $500 $1,000
Real Estate & Expenses $700 $3,000
Equipment $3,000 $5,000
Signs $100 $750
Miscellaneous Opening Costs including insurance deposit $5,000 $7,500
Inventory $100 $500
Advertising - 3 months $500 $800
First Year Working Capital $40,000 $45,000
Additional Funds - 3 months $4,000 $6,000
ESTIMATED TOTAL $102,260 $117,910
Other Fees
Type of Fee Amount
Royalty Fee 5% of Gross Sales.
Initial Training Fee $0
Initial Training for Additional People
1 person, no hotel
1 person, 1 hotel room
2 people, no hotel room
2 people, 1 hotel room
2 people, 2 hotel rooms

$1,000
$1,500
$2,000

$2,500
$3,000
Supplemental Training at the Office $500 a day plus expenses.
Transfer Fee $15,000
Audit Fee Cost of audit, including travel expenses, plus interest on amount of underpayment.
Renewal Fee $5,000
Marketing Fund Up to 2% of monthly Gross Sales.
Interest Fee Prime commercial rate plus 3% as reported by the Wall Street Journal (Midwestern edition), but no less than 12% per year.
Insurance Cost of insurance.
Costs and Attorneys’ Fees Will vary under the circumstances.
Indemnification Will vary under the circumstances.

The above information has been taken from the FDD of Home instead. Year of FDD: 2015

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