Homewatch
Date of Incorporation: 1976
Franchising Since: 1996
Headquarters: Greenwood Village, Colorado
Country: U.S.
Description: Homewatch International offers franchises for the establishment and operation of business offering companionship, comprehensive personal care and transportation services to private pay and insured clients.
Franchise Offer: Homewatch International is offering franchises for the operation of a business which offers companionship, comprehensive personal care services and transportation provided by home health aides, personal care providers, certified nurse assistants, licensed practical nurses and registered nurses to the aged, disabled, recovering, rehabilitating, convalescing and other clients. The franchise business provides services focused on the activities of daily living to a variety of clients. The services provided include services such as meal preparation, light housekeeping, transportation, bathing, grooming, oral care, ambulation assistance, medication reminding and medication assistance.
Financial Assistance: The franchisee is eligible for expedited and streamlined Small Business Administration (SBA) loan. Neither the franchisor nor any agent or affiliate currently offers direct or indirect financing. The franchisor does not guarantee notes, leases or other obligations.
Training and Assistance: Homewatch conducts the initial training program at offices in the Denver, Colorado metropolitan area or any other location. The training program lasts five days. The training material consists of manuals, other written and visual materials and computer disks. The initial training program is usually conducted six times each year. The franchisee may send up to three people to our initial training program.
Territory: The franchisee operates the Homewatch business from a single location identified in the Franchise Agreement. The franchisee will have exclusive rights to provide services to clients residing within the territory. A second territory may be awarded if the franchisee meets financial and experience requirements to qualify for a second territory.
Term of Agreement and Renewal: The term of the Franchise Agreement is 10 years. Renewal or extension of the term is as specified in the then-current Franchise Agreement.
Obligations and Restrictions: The franchisee need not participate personally in the direct operation of the Homewatch business, although it is recommended to do so. If the franchisee does not personally supervise the day-to-day operation of the business, the franchisee must appoint a Principal Operator to be responsible for the direct on-premises supervision of the Business. The Principal Operator must complete the initial training program.
Total Number of Units: 181 locations (Territories)
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee per Territory | $35,000 | $50,000 |
| Initial Telephone System Costs- installation | $000 | $1,000 |
| Training Expenses | $1,500 | $4,500 |
| Office Equipment and Computer Hardware | $1,000 | $2,000 |
| Security Deposits | $1,000 | $3,000 |
| Office Furniture | $1,000 | $2,000 |
| Insurance, Liability and Bonding | $3,000 | $5,000 |
| Workers' Compensation Insurance | $2,000 | $4,000 |
| Opening Advertising Campaign | $5,000 | $5,000 |
| Additional Funds for 6 months | $40,000 | $63,500 |
| Total | $90,000 | $140,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 5% of monthly Gross Billings on non-Medicaid Clients. The franchisee must pay a 2% Royalty on all Medicaid Gross Billings. |
| National Marketing Fee | 1% of monthly Gross Billings |
| Local Advertising | The franchisee must spend a minimum of 4% of Gross billings on local promotion and marketing. The 4% is averaged on an annual basis. |
| Opening Advertising Campaign | $1,000 paid to the designated third-party public relations firm. $4,000 paid to other third-party advertising companies. |
| Renewal Fee | 25% of the then current initial franchise fee, but not to exceed $15,000. |
| Transfer Fee | 25% of the then current Franchise Fee, but not to exceed $15,000 plus $10,000 for every underdeveloped franchise under a development agreement. |
| Audit Costs | Cost of inspection or audit but not to exceed $15,000 |
| Initial Training Program Travel and Living Expenses | Will vary under circumstances |
| 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 |
| Interest | Lesser of 18% per annum or highest rate allowed by law. |
| Royalty Report Late Fee | $50 per late report |
| Background Checks | Will vary under the circumstances typically $20 to $100 per person |
| Costs and Attorneys' Fees | Will vary under the circumstances |
| Indemnification | Will vary under the circumstances |
| Off the shelf Software Updates and Maintenance | Upgrade for other software from third party vendors will vary depending on the software license. |
| Website Hosting and Email Service | $100 a month or $1,000 a year if paid by January 31 of the current calendar year, payable to the franchisee. Subject to change as costs change. |
| Home Tools Software fee | Monthly costs associated with referral source, client and caregiver management, client scheduling, invoicing, and caregiver data management, including telephony, provided by the designated software vendor. Fees vary according to the number of active caregivers each month, ranging from a minimum of $150 per month to a high of $900 per month, and an average $400 per month. |
Date of FDD: 2010
The above information has been compiled from the FDD of Homewatch along with online sources.
Franchise Direct's Disclaimer
You may be interested in the following franchises...
ATC at Home
Starting an ATC senior care franchise is simple. We do all your payroll, billings and collections, letting you...
Minimum Cash Required: $39,500.
Touching Hearts at Home
Our years of experience in the senior care industry can pave the way for your success. Find out why Touching...
Minimum Cash Required: $34,500.
Your Request List