Home Care Assistance Franchise Costs & Fees
Date of Incorporation: 2003
Franchising Since: 2004
Headquarters: Palo Alto, California
Business Description: HCAFranchise Corporation is the franchisor. Franchisees operate a non-medical home care business that provides in-home companionship services under the name “Home Care Assistance 1-866-4-LiveIn.”
Franchise Offer: The franchisor grant franchises for businesses under the name “Home Care Assistance 1-866-4-LiveIn” and other trademarks. The business will be a non-medical home care business that offers an assortment of companionship services including: companionship; personal care; meal preparation; light housekeeping; laundry; errands and transportation. Franchisees will provide these services on a daily or hourly basis, and they will offer these services on both a live-in and live-out basis. The primary focus will be the market for 24-hour, live-in service. Potential customers include members of the general public, but franchisees will mainly target the senior citizen segment.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not receive any consideration for placing financing with a lender, although it reserves the right to do so. The franchisor does not guarantee franchisees’ note, lease or obligation.
Training and Assistance: Franchisees and any proposed Manager of the Business are required to attend the Training Program, part of which will be held at the franchisor’s national headquarters in Palo Alto, California, or another location designated by the franchisor, and the other part of which will be held at the franchisee’s Business location. The Training Program typically lasts for 7 days, depending on the franchisee’s progress and desire to spend additional time observing the operations of an HCA Business. The Training Program is free of charge to franchisees, their Manager and one other person (for a possible total of three people). The franchisor may require that franchisees (or if they are a corporation or partnership, a managing partner or shareholder) and any Manager(s), assistant manager(s) and schedulers(s) complete supplemental and refresher training programs during the term of the Franchise Agreement.
Territory: TFranchisees will receive an exclusive territory that it designates, which it calls the “Protected Territory.” The Protected Territory will be identified in the Franchise Agreement before franchisees sign it. The Initial Franchise Fee charged is calculated based on the total population size within the Protected Territory. The franchisor does not have any minimum area for the Protected Territory. The Protected Territory will be legally designated as county(ies), city(ies) or collection of ZIP Code areas, as those area and their legal boundaries exist on the date franchisees sign the Agreement. Except as limited, and provided that franchisees are in full compliance with the Franchise Agreement, the franchisor and its affiliates will not operate or grant a franchise for the operation of another HCA Business at a location within the Protected Territory during the term of the Franchise Agreement.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees are permitted to obtain up to 5 successor franchise agreements for 10-year terms if they meet the requirements.
Obligations and Restrictions: The Franchise Agreement provides that the Business must at all times be under the franchisee’s direct, day-to-day, on-premises, full-time supervision (or if franchisees are incorporated or are a partnership, then a manager, managing partner or shareholder of the corporation or partnership, approved by the franchisor).
Estimated Number of Units: 110
|Name of Fee||Low||High|
|Initial Franchise Fee||$64,950||$114,950|
|Real Estate/Rent (first 3 months)||$6,000||$18,000|
|Real Estate Improvements||$5,000||$30,000|
|Office Furniture, Computer and Other Office Equipment & Computer Software||$5,000||$20,000|
|Initial Inventory, Advertising and Marketing Materials||$12,300||$26,300|
|Additional Funds - first 3 months||$12,000||$24,000|
|Type of Fee||Amount|
|Royalty||5% of Gross Revenue; only 1% of collections during first three months after the date franchisees first realize revenue from the Business (the “Revenue Commencement Date”), but only if they meet the local advertising requirement.|
|Brand Fund Fee||Three fourths of one percent (.75%) of the Gross Revenue of the Business.|
|Software Fees||The supplier’s reasonable monthly charge; currently $9.00 for each active client.|
|Home Care Pulse Fee||$18.00 per call placed to the franchisee’s client or employees, subject to increase no more frequently than annually.|
|Cognitive Therapeutics Method Kits||$450 per kit. If franchisees order 10 or more kits, the price is $425 per kit. If franchisees order 20 or more kits, the price is $400 per kit.|
|Local Advertising Payment||The difference between the amount franchisees spent on local advertising and their required local advertising expenditure ($3,000 per month for the first 200,000 people residing within the Protected Territory, and $500 per month for each additional 100,000 people).|
|Internet Marketing||$1,000 of your required local advertising expenditure ($2,000 if the Protected Territory encompasses more than 500,000 people).|
|Additional Training Fee||$1,000 per additional person franchisees wish to bring to training.|
|Additional Assistance Fee||Reasonable fee charged by the franchisor, as published in its Manuals; currently $300 per person sent to the Business, per day, plus her or his travel and living expenses.|
|National Convention Fee||Franchisees’ share of the franchisor’s reasonable expenses in holding a national convention; will not exceed $1,000 per attendee.|
|Supplier Inspection/Testing Fee||Reasonable costs incurred by the franchisor with respect to evaluating a supplier or product for which franchisees request the franchisor’s approval.|
|Additional Email Address Fee||$100 annual fee per additional e-mail address that franchisees request.|
|Audit Fees||Actual Cost of Audit Fees, plus interest at 1.5% per month.|
|Toll Free Telephone Number Fee||The “pass-through” rate, currently $0.09/minute, for calls to the Business.|
|Costs of Enforcement or Defense||Will vary under circumstances.|
|Follow-up Inspection Fee||The inspection fee in effect at the time a follow-up inspection is required (currently $500)|
|Interest||1.5% of the delinquent amount or the highest rate permitted by law, whichever is less.|
|Insurance||The cost of premiums, plus an administrative fee equal to 20% of the cost of the premiums.|
|Relocation Fee||The charges including legal and accounting; will not exceed $3,000|
|Management Fee||$300 per day that the franchisor manages the franchisee’s Business, plus its direct expenses incurred on the franchisee’s behalf.|
|Transfer Fee||25% of the-then current Initial Fee charged by the franchisor on date of transfer, or 5% of the total consideration paid, whichever is greater.|
|Professional Fees||All reasonable costs incurred by the franchisor with respect to the proposed transfer.|
|Successor Franchise Fee||10% of the standard initial franchise fee in effect at the date of signing the successor franchise agreement.|
|Indemnification||Will vary under circumstances.|
|Liquidated Damages||If the Franchise Agreement is terminated early for any reason (other than for the franchisor’s uncured material breach after franchisees follow the procedure in the Franchise Agreement), the franchisee must pay liquidated damages in the amount of:
(a) The combined monthly average of Royalty Fees and Brand Fund Fees (without regard to any fee waivers or other reductions) that franchisees owe, beginning with the fourth (4th) month after the Revenue Commencement Date through the date of early termination;
(b) Multiplied by the greater of: (i) thirty-six (36), or (ii) the number of full months remaining in the Term.
The above information has been taken from the FDD of Home Care Assistance. Year of FDD: 2015
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