Homewatch International Franchise Cost & Fees
Date of Incorporation: 1976
Franchising Since: 1996
Headquarters: Greenwood Village, Colorado
Business Description: A Homewatch Caregivers Business includes companionship, personal care, complex personal care and nursing services for clients with disabilities, long-term health conditions and chronic illnesses. Businesses also offer post-hospitalization care, nursing coordination services, specialized dementia care and temporary staffing for nursing homes and other health care facilities.
Franchise Offer: Homewatch International, Inc., the franchisor, is offering franchises for the operation of a business which offers companionship, complex personal care and nursing 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.
Financial Assistance: Franchisees are eligible for expedited and streamlined Small Business Administration (SBA) loan processing through the SBA’s Franchise Registry Program. Other than the Registry Program, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee notes, leases or other obligations.
Training and Assistance: Franchisees may send up to three people to the initial training program. The franchisee, or if the franchisee is not an individual, a majority owner of the franchisee entity, and if applicable, the person who will be primarily responsible for managing the Business, must attend the entire initial training program. Homewatch conducts the initial training program at offices in the Denver, Colorado metropolitan area or any other location it selects, at its sole discretion. Franchisees or their Principal Operator must also complete approximately 4 weeks of pre-opening training to complete before attending the initial training program. The training program lasts five days. The training material consists of written and visual materials. Classroom hours include simulated “on-the-job” training. Franchisees or their Principal Operator must attend, in its entirety, any additional mandatory ongoing training programs or webinars the franchisor may offer.
Territory: The franchisee operates the Homewatch business from a single location identified in the Franchise Agreement. The Office Location must be located within the geographic area identified in the Franchise Agreement (Territory), which is typically identified by zip code(s) or county lines and contains a population ranging from a minimum of 15,000 seniors to a typical population of approximately 30,000 to 40,000 seniors. If the franchisee desires a larger Territory, he/she may be able to purchase additional zip code areas to add population up to a maximum of 50,000 seniors for an additional fee. Franchisees will be granted a protected territory within which the franchisor will not operate, or franchise anyone else to operate, a Homewatch Caregivers Business, subject to its reservation of rights.
Term of Agreement and Renewal: The term of the Franchise Agreement is 10 years. Renewal or extension of the term is as provided in the then-current Franchise Agreement, if requirements are met.
Obligations and Restrictions: The franchisee need not participate personally in the direct operation of the Homewatch business, although he/she 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. Franchisees are prohibited from operating or engaging in any other type of business or profession from the Office Location or through the Business, unless the franchisor first approves of it in writing, which approval can be withheld for any reason. Franchisees are obligated to use only the equipment, products, services, and supplies that comply with Homewatch standards and specifications and which are acquired from approved suppliers. Franchisees are prohibited from operating or engaging in any other type of business or profession from their Office Location or through the Business, unless the franchisor first approves of it in writing, which approval can be withheld for any reason.
Estimated Number of Units: 235
|Name of Fee||Low||High|
|Initial Franchise Fee per Territory||$49,000||$49,000|
|Optional Additional Territory Fee||$0||$12,500|
|Initial Telephone System Costs - installation of two lines||$200||$500|
|Office Equipment and Computer Hardware and Off-the-Shelf Software||$1,000||$2,000|
|Insurance, Liability and Bonding||$3,000||$6,000|
|Workers' Compensation Insurance||$2,000||$4,000|
|Initial Marketing Spend||$4,000||$4,000|
|Licenses, Permits and Professional Fees||$500||$10,000|
|Additional Funds for 3 months||$20,000||$40,000|
|Type of Fee||Amount|
|Royalty||5% of monthly Gross Billings.|
|National Marketing Fee||1% of monthly Gross Billings.|
|Opening Marketing Campaign||$4,000 minimum total will be spent on an opening marketing campaign. Marketing activities to be determined based on a customized marketing action plan for each Territory.|
|Regional Advertising Association||May vary, with recurring contributions up to 4% of Gross Billings, but reduces the local advertising expenditure proportionally.|
|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. If the franchisor owes a referral fee to a broker, the franchisee must reimburse the franchisor that amount in addition to other applicable fees.|
|Audit Costs||Cost of inspection or audit.|
|Additional Training, Conventions, and Conferences||Costs associated with attending mandatory training sessions, conventions and other meetings. The franchisor reserves the right to charge the then current annual conference registration fee irrespective of attendance.|
|Interest||Lesser of 18% per annum or highest rate allowed by law.|
|Royalty Report Late Fee||$50 per late report.|
|Late Royalty Payment Remedy||The actual amount owed, if known, or the greater of $1,250 or the prior month's Royalty, plus Royalty Report Late Fee.|
|Caregiver Monitoring Background Checks and Client Satisfaction Survey||Will vary; background checks typically are $20 to $100 per person; drug screening is typically $10 to $50 per person; third-party survey of Client satisfaction with Caregivers ranges from $15 to $18 per survey.|
|Costs and Attorneys' Fees||Will vary under the circumstances.|
|Indemnification||Will vary under the circumstances.|
|Off the shelf Software Updates and Maintenance||Upgrade(s) for other software from third party vendors will vary depending on the software license.|
|Email Service and Technical Assistance||$115 a month or $1,175 a year if paid by January 31 of the current calendar year, payable to the franchisor. Subject to change as costs change.|
|Home Tools Software fee||One-time set-up of $195 plus 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, or the number of concurrent users, ranging from a minimum of $150 per month to a high of $495 per month.|
|Homewatch CareGivers University||Current monthly fees are $1.01 per person; these fees are subject to change.|
|Investigative Fee and Violation Fees||Then current fee ($100 an hour as of the date of this Disclosure Document) for investigation, plus attorneys’ fees and costs. Fees for violations equal 15% of Gross Billings resulting from services provided by a franchisee that violates the franchisor’s Territory Policy as described in the Operations Manual.|
|Liquidated Damages||Will vary depending on remaining term of Franchise Agreement.|
The above information has been taken from the FDD of Homewatch. Year of FDD: 2015
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