Homewatch CareGivers Franchise Costs, Fees & FDD

Year Business Began: 1976

Franchising Since: 1996

Headquarters: Columbia, Maryland

Estimated Number of Units: 250


Franchise Description: The franchisor is Homewatch CareGivers Franchising SPE LLC. The franchisor’s parent company is Authority Brands, LLC. Homewatch CareGivers businesses provide companionship, personal care, complex personal care and nursing and other skilled services provided by home health aides, personal care providers, certified nurse assistants, licensed practical nurses and registered nurses for seniors and clients of all ages. Caregivers may provide care services to clients with disabilities, long-term health conditions and chronic illnesses. Care services also include post-hospitalization care, nursing coordination services, specialized dementia care, temporary staffing for nursing homes and other healthcare facilities, and telehealth technology services that the franchisor may approve from time to time.
Training Overview: Before the franchised business opens, the key person and any owners that the franchisor designate must attend and successfully complete an initial training program. The training program consists of two phases: phase one, which is conducted online (pre-training), and phase two, which is a proprietary franchise performance and development training program conducted in an in-person or virtual classroom setting (classroom training). Classroom hours include simulated “on-the-job” training. In addition to the training program, franchisees must also participate in the franchisor’s Business Implementation Program, a 52-week program that starts several weeks prior to their participation in the training program and that provides them with week-to-week guidance (in the form of phone and email consultations, educational materials, sample forms and other resource materials) on the building of their franchised business, including sales and marketing planning. After the franchised business opens, the franchisor will make available, at the time(s) and location(s) it designates, such other required and optional training programs as the franchisor deems necessary and appropriate. For training that the franchisor designates as required, the individuals that the franchisor designates are required to successfully complete the training. The franchisor typically offers an annual convention for all franchisees and various regional meetings. Franchisees must attend the annual convention, if offered.

Territory Granted: The franchise is granted for the approved location only. Franchisees may not relocate a franchisee’s business premises without the franchisor’s prior written approval. Typically, the territory is based on a total population of 35,000 to 38,000 seniors. The franchisor determines the number of seniors in the territory by reference to information provided by third-party data compilation and demographic service providers. Franchisees will have a protected territory during the term of their Franchise Agreement, provided they are in full compliance with the terms of the Franchise Agreement, including certain minimum performance requirements and their obligation to primarily service customers in their territory. “Protected” means that the franchisor will not operate a business under the marks and the system in the territory or authorize others to operate franchised businesses within the territory, except as described in the FDD. This does not prohibit the franchisor from advertising or soliciting employees or independent contractors in the territory. In the franchisor’s sole discretion, it may allow franchisees to add population to their existing territory during the term of their Franchise Agreement. If the franchisor does so, franchisees will be required to pay the then-current additional seniors fee, currently $1.85 per senior.

Obligations and Restrictions: Franchisees must designate an individual who will be responsible for the day-to-day operational performance of the franchised business and who has the authority to bind the franchisee in all decisions regarding the franchised business (the key person). The key person must own at least 5% of the equity in any limited liability company, corporation, or partnership, unless otherwise agreed upon in writing by the franchisor. The key person must complete the initial training program and, in the franchisor’s discretion, may be required to work on premises at the business office. The spouse of an owner is not required to sign a personal guarantee if the spouse has no ownership interest in the business entity. However, the spouse will be required to sign a spouse acknowledgement in the form attached to the personal guarantee. Franchisees are required to offer and sell all products and services that the franchisor designates as required items for Homewatch Caregivers businesses. Franchisees may also offer for sale any optional products and services that the franchisor has approved for sale in the franchised business. Franchisees are prohibited from offering any unapproved products or services without our prior written consent, and they must discontinue selling or offering for sale any products or services that the franchisor disapproves of at any time.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees can renew the franchise for one additional term of 10 years if they meet certain conditions.

Financial Assistance: In the franchisor’s discretion, it may permit franchisees to finance up to 75% of the franchise fee and any applicable additional seniors fee rather than paying the entire amount in a lump sum when they sign the Franchise Agreement. However, the franchisor does not offer financing for any transaction involving brokers or any other third party referral sources. The franchisor has discount programs for existing franchisees, franchisees of its affiliates, military veterans, minority, women, and LGBTQ+ applicants, and first responders, and it may vary, reduce, negotiate, or make an exception to the standard franchise fee structure in other circumstances.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$50,000	$50,000
Compliance Toolkit Fees	$2,500	$2,500
Homewatch CareGivers Care+ Initial Software Fees	$1,830	$1,830
Telephone System	$250	$500
Travel and Living Expenses While Training	$2,500	$5,500
Office Equipment and Computer Hardware and Off-the-Shelf Software	$1,060	$4,500
Lease and Security Deposits	$3,000	$8,000
Office Furniture	$2,000	$4,000
Insurance	$8,000	$18,000
Licenses, Permits and Professional Fees	$500	$8,000
Additional Funds for 3 months	$50,000	$75,000
ESTIMATED TOTAL	$121,640	$177,830

Other Fees

Type of Fee	Amount
Royalty Fee	5% of gross revenue or the minimum royalty, whichever is greater. The minimum royalty is calculated based upon the number of months the franchised business has been open.
Brand Fund Contribution	Currently, the contribution is based on gross revenue during the calendar year, starting at 2% of gross revenue and decreasing as revenue increases.
Brand Fund Materials	The franchisor’s costs.
Local Marketing Fees and/or Cooperative	$24,000 annually (an average of $2,000 per month) or 3% of gross revenue, whichever is greater.
Grand Opening Marketing	$2,000 within the first three months after opening the franchised business.
Key Account Programs	Will vary under circumstances and may be determined based on number of participating franchisees or other factors.
Technology Fees	Franchisees will pay ongoing fees for various technology services and apps. The specific services and apps and the applicable fees will vary over time.
Additional Opening Support Fee	A reasonable fee, plus the reasonable travel, meal, and lodging expenses of the franchisor’s opening support personnel.
Training Fee – Pre-Opening	None, unless franchisees request and the franchisor agrees to accept extra trainees. $1,000 per day per extra trainee plus the franchisor’s trainers’ reasonable costs and expenses, when applicable.
Training Fees – Remedial and Optional Training	$1,000 per trainee.
Annual Conference	Determined by the franchisor based on its anticipated costs of the conference. Applies only if the franchisor schedules an annual conference for franchisees.
Conference Non-Attendance Fee	$500 for the first missed conference and then $2,000 for any missed conference consecutively thereafter.
Call Center Fee	None currently.
Service Deficiency Fee	The franchisor’s costs.
Renewal Fee	$5,000
Transfer Fee	Generally, $10,000. However, if the proposed transferee was referred by a third-party (e.g., a broker) with whom the franchisor has a referral arrangement, then franchisees must pay the franchisor an additional fee equal to the amount owed under that referral arrangement. If the franchisor identifies the prospective purchaser, then in addition to the $10,000 fee, franchisees must pay the greater of: (a) $15,000; (b) 3% of the total purchase price; or (c) the franchisor’s actual costs to identify the prospective purchaser.
Change of Ownership Fee	Currently, (a) the greater of $500 or the franchisor’s external legal and administrative costs; plus (b) applicable training fees for the individuals it requires to attend training.
Procurement of Insurance	Cost of insurance plus reasonable fee of up to 25% of total insurance premium cost.
Vendor Review	The franchisor’s reasonable costs, plus the reasonable travel, meal, and lodging expenses of the vendor review personnel.
Management Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Step-In Fee	Up to $500 per day, plus the franchisor’s costs and overhead.
Interest	12% per annum or the maximum rate permitted by applicable law, whichever is less.
Late Fee	$100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence.
Insufficient Funds Fee	$50 or the amount the bank charges the franchisor due to the insufficient funds, whichever is greater.
Indemnity for Tax Withholding	Amount of any penalties, interest, and expenses the franchisor incurs.
Audit Costs	The franchisor’s actual costs and expenses of conducting an audit, including travel and lodging.
Enforcement Costs	The franchisor’s actual costs and expenses.
Defense Costs	The franchisor’s actual costs and expenses.
Indemnification	The franchisor’s actual loss, costs and expenses.
Liquidated Damages	The greater of: (i) two years of royalty fees (calculated as the average royalty fees per payment period in the year preceding the termination of the Franchise Agreement, multiplied by the number of payment periods occurring in a two-year period); or (ii) $100,000.
De-Identification Fee	The franchisor’s actual costs.

The above information has been compiled from the FDD of Homewatch CareGivers. Year of FDD: 2025.
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