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Synergy Homecare Franchise Cost & Fees

Date Incorporation: 2003

Franchising Since:  2005

Headquarters: Arizona

Description: Synergy Homecare operates a business providing non-medical, in-home personal assistance, such as in-home care and companionship, medication reminders, providing personal services to seniors, the convalescing, disabled persons and others who need help with daily living activities.

Franchise Offer: The franchise offered is for the right to operate a Synergy Homecare franchise providing non medical in-home care to seniors. The franchisor is not offering regional developer rights.

Financial Assistance: The franchisor does not offer direct or indirect financing.

Training and Assistance: The franchisee and one additional employee must attend the initial training program. The program will consist of 5 days of classroom training, located at the headquarters in Gilbert, Arizona.

Territory: The franchisee will be granted a protected territory. This will contain approximately 20,000 persons over the age of 65.

Term of Agreement and Renewal: The length of the franchise term is 5 years, with an option for renew for 5 additional terms of 5 years each.

Obligations and Restrictions: The franchise must be under the direct full-time supervision of a designated manager who has successfully completed the initial training program.

Total Number of units: 95 units

Investment Tables:

Initial Investment:

 Expenditures       Low High
 Franchisee fee        $35,000  $35,000
 Real estate/rent        $1,200  $5,500
 Utility deposits       $0  $300
 Leasehold improvements    $0  $1,500
 Furniture, fixtures and equipment         $500  $3,000
 Software         $750  $1,000
 Computers and printer         $1,500  $3,500
 Insurance and bonds         $2,500  $6,000
 Signage       $100   $2,000
 Office equipment and supplies         $750  $3,000
 Grand opening advertising         $1,000  $2,000
 Training          $1,000  $2,500
 Licenses and Permits         $0  $500
 Legal and accounting        $500  $3,000
 Dues and subscriptions         $440  $740
 Additional funds – 3 months         $4,000  $30,000
 TOTAL         $49,240  $99,540

Ongoing fees:

Name of Fee    Amount 
 Royalty Fee     5% of Gross sales
 Marketing fund contribution     2% of Gross sales
 Local advertising     Not less than 2% of gross sales per month
 Telephone directory advertising     Depends on area and type of listing
 Software maintenance fee  -S.M.A.R.T Program     $1,000 per year or $95 per month
 Audit expenses     Cost of audit
 Late fees     The highest rate allowed by law, plus collection
 Supplier or product approval     All reasonable costs of evaluation
 Insurance policies     Amount of unpaid premiums plus expenses
 Transfer fee     The greater of $12,500, 50% of the then current franchise fee or the amount necessary to reimburse the franchisor for the costs
 Public offering fee     $5,000 or the amount necessary to reimburse the franchisor for the costs
 Customer service     All costs incurred in assisting the customers
 Additional training     Market rates plus franchisors expenses and employees expenses in attending the training
 Additional operational assistance     Market rates plus franchisors expenses
 Additional territory fee  $35,000 for the first additional territory
  $30,000 for the second additional territory
  $20,000 for the third additional territory
  $15,000 for the fourth additional territory
  $10,000 for all other additional territories
 Ongoing training     The franchisee and employees expenses in attending the programs
 System modifications     Amounts as may be reasonably required
 Cost of enforcement     All costs including attorney’s
 Indemnification  All costs including attorney’s

Date of FDD:

The above information has been taken from the UFOC/FDD and online sources of Synergy Homecare
Franchise Direct's


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