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Senior Helpers Franchise Cost & Fees

Date of Incorporation: 2001
Franchising Since: 2005
Headquarters: Timonium, Maryland

Business Description: SH Franchising, LLC is the franchisor. The franchisor offers franchises for the operation of in-home care agencies that operate under the System and the “Senior Helpers” mark. These in-home care agencies provide various in-home non-medical care and personal assistance services, primarily for elderly individuals. These services include care and companionship services, bathing, dressing, grooming, and personal hygiene assistance, light housekeeping, meal planning and preparation, running errands, transportation, medication reminders, and Alzheimer’s and dementia care.

Franchise Offer: The franchisee will operate in-home care agencies that provide various in-home non-medical and personal assistance services, primarily for elderly individuals, including care and companionship services, bathing, dressing, and grooming, light housekeeping, meal planning and preparation, running errands, medication reminders, and Alzheimer’s and dementia care.

Financial Assistance: The franchisor may offer and provide financing of the initial franchise fee to certain exceptionally performing franchisees for the purchase of an additional franchised business. Other than the financing described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Training and Assistance: The franchisor will conduct an initial training program for franchisees (or, if they are an entity, the Operating Principal), and their initial Key Manager, which will address the material aspects of operating a Senior Helpers Home Care Business. Training for franchisees and/or their Manager may be conducted at the franchisor’s discretion within 6 months before opening the Franchised Business. The franchisor will provide the initial training program at its headquarters or at a designated training facility of its choice. Franchisees (or their Operating Principal), and/or other previously trained and experienced Key Managers and employees, must attend and complete satisfactorily various training courses that the franchisor periodically chooses to provide at the times and locations that it designates, as well as periodic conventions, regional meetings, and conferences that it specifies. The franchisor requires at least one person from the Franchised Business which may be the franchisee (or Operating Principal), the Key Manager, and/or other previously trained and experienced managers and employees to attend and complete Senior Gems training within 6 months of the Opening Date.

Territory: Before franchisees sign the Franchise Agreement, the franchisor will designate a Territory and describe it in the Franchise Agreement. The Territory will also be drawn on a map and the map will be attached to the Franchise Agreement. The Territory will be defined by zip codes and will be included as part of the Franchise Agreement before franchisees sign the Franchise Agreement. However, the franchisor reserves the right to define the Territory by other boundaries (e.g., natural boundaries). We will determine the Territory on a case-by-case basis based on economic, demographic and geographic information, including number of residents who are 75 years and older. The franchisor expects that most Territories will have at least 15,000 people who are 75 years or older.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the opening date of the Franchised Business. Additional 10-year successor terms are available, if requirements are met.

Obligations and Restrictions: Franchisees or their Operating Principal must manage and provide general oversight of the Franchised Business on a full-time basis. The Key Manager will be charged with responsibility for direct supervision of the Franchised Business. Franchisees must keep the franchisor informed at all times of the identity of any supervisory employee(s) or acting Key Managers. The Key Manager must devote full time and efforts to the management and supervision of the Franchised Business. Franchisees must provide all client care, companion services and personal assistance services, and other services and products that the franchisor specifies from time to time. Franchisees must offer and sell approved services and products only in the manner the franchisor has required. Franchisees must not offer for sale or sell at or from the Franchised Business, a client’s home, or any other location any services or products the franchisor has not approved.

Estimated Number of Units: 300

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $44,500 $44,500
Travel and Living Expenses while Training $1,500 $3,000
Lease, Utility and Security Deposits $1,000 $2,500
Leasehold Improvements $0 $2,000
Promotional Items $2,000 $4,000
Additional Staffing 12,000 $15,000
Furniture & Fixtures and Equipment (including Computer System) $1,500 $5,000
Supplies $700 $1,500
Initial Advertising $3,000 $6,000
Business License & Permits $0 $12,500
Legal/ Professional Fees $100 $1,300
Insurance $2,500 $4,000
Recruitment $1,000 $2,000
Additional Funds (3 months) $11,500 $14,000
Estimated Total $81,300 $117,300
Other Fees
Type of Fee Amount
Royalty 5% of the Gross Sales from the preceding two-week period, or the minimum Royalty. If franchisees sign the Franchise Agreement and pay the initial franchisee fee on Discovery Day then, during the first Year of Operation (as defined below), the Royalty will be 2.5% of the Gross Sales from the preceding two-week period or the minimum Royalty.
Marketing Fund An amount up to 3% of the Gross Sales. Currently the greater of 1% of Gross Sales or $75 per billing period, with a maximum contribution of $300 per billing period.
Brand Management Fee Currently $133.38 per two-week period.
On-Going Training Reasonable registration or similar fees. Currently, the attendance fee for the national conference is approximately $600 per attendee. There is currently no fee charged by us for the Senior Gems training.
Transfer Fee 50% of our then-current initial franchise fee charged to a franchise owner new to the system or such greater amount as is required to reimburse us for reasonable expenses associated with reviewing the transfer
Offering Fee $7,500 or such greater amount as is necessary to cover our costs and expenses for reviewing the proposed offering.
Interest on Overdue Amounts 1.5% per month or the highest commercial contract interest rate that the law allows on amounts owed to the franchisor.
Cross-Territorial Policy Payment Varies.
Audit Costs Costs of the examination.
Successor Term Fee $5,000
Indemnification Varies.
Costs and Attorneys' Fees Varies.
Insurance Costs Varies.
IT Fee Currently $400 per month, but the franchisor may increase or decrease upon 30 days advance written notice.
Management Fee Varies.

The above information has been taken from the FDD of Senior Helpers. Year of FDD: 2016

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