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Visiting Angels Franchise Cost & Fees

Date of Incorporation: 1991
Franchising Since: 1998
Headquarters: Bryn Mawr, Pennsylvania

Business Description: Living Assistance Services, Inc. (LAS) is the franchisor. The franchised business provides non-medical home care giving services to elderly or convalescing clients in their homes.

Franchise Offer: Franchisees will operate a franchised non-medical (“private duty”) home care giving business for homebound elderly and adult clients under the name Visiting Angels.

Financial Assistance: The franchisor may assist franchisees in obtaining financing upon their request. Assistance is limited to documenting any information or materials which franchisees will need to provide to a potential lender for the purpose of obtaining financing.

Training and Assistance: Franchisees will receive 45 hours of training (Initial Training Program) during a period of 5½ days which will enable them to open and operate the Franchised Business. The franchisor allows franchisees to bring a total of 2 individuals associated with the Franchise (including their selves) to training at no extra charge. At the present time, there is no requirement that franchisees attend any additional sessions. However, in some instances, additional training sessions may be mandatory for franchisees to attend.

Territory: Franchisees will receive a Protected Territory in which to operate their “Visiting Angels, Living Assistance Services” Franchised Business. The Initial Franchise Fee will be $37,950 in all regions in which a radius of 30 miles with the Franchised Address at the center comprises a population of 100,000 or less (and in which the Protected Territory cannot exceed 100,000 in population within 30 miles). In all regions in which the Protected Territory will be greater than 100,000 and less than 200,000 in population, the Initial Franchise Fee will be $45,950. For franchises of 325,000 in population the Initial Franchise Fee will be $61,950. Since the demographic characteristics of areas within which Visiting Angels, Living Assistance Services Franchised Businesses are located differ, the protected territory granted to each franchisee can differ. Some Franchised Businesses, such as those within densely populated areas, will have a smaller protected territory while others in more remote locations will have relatively large protected territories.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If the franchisee is in good standing, he or she can add additional 10 year terms.

Obligations and Restrictions: Franchisees must attend and successfully complete the initial training program. If the franchise is a partnership or a corporation, at least one of the general partners or corporate shareholders, as appropriate, must attend and successfully complete the training program on the franchisee’s behalf. This person must serve as the principal person for the franchisor to contact in connection with the Franchised Unit and must be empowered to oversee compliance with the Franchise Agreement. Franchisees may not offer services which it has not specifically approved in advance. Franchisees must offer all services that the franchisor designates as required for all franchisees. The franchisor requires that franchisees rent or purchase a commercial location. Franchisees may lease a shared executive office service. The Franchised Business must be located at an actual street business address (PO Boxes and UPS store or “shipping store” locations not accepted) to be centrally located in the Protected Territory.

Estimated Number of Units: 560

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $40,950 - up to 100K pop;
$48,950 up to 200K pop;
$64,950, 325K pop.
(Additional protected territory can be purchased for a fee).
Printing/Supplies $1,500 $1,500
Insurances Deposits $2,500 $2,500
Workers' Comp Insurance Deposits $9,500 $9,500
Lease Deposits $2,500 $2,500
Travel, Lodging Expenses During Training (per person) $750 $1,500
Computer Software $0 $5,000
Advertising Fee (First 3 Months) $1,050 $1,050
Additional Funds (3 Months) $9,000 $20,000
ESTIMATED TOTAL $66,750 $107,500
Other Fees
Type of Fee Amount
Royalty/Service Fee 3.5% of total Gross revenues; 3.0% after $60,000 per month revenues are reached; 2.75% after $95,000 per month revenues are reached; 2.5% after $150,000 per month are reached; 2.25% after $200,000 per month are reached; 2.0% after $250,000 per month are reached;. Minimum $395 ($525/month in 325K pop territory) by 2nd month after training; minimum $695 per month ($925/month in 325K pop territory) in the 15th month; minimum $995 per month ($1,295/month in 325K pop territory) in the 30th month. Minimum $1,195 per month ($1,595/month in 325K pop territory) in the 45th month.
Advertising N/A
Cooperative Advertising $350 per month ($495/month in 325K pop. territory) or 2.5% of your gross revenues if higher; 2.0% of gross revenues after $60,000 per month revenues are reached; 1.75% of gross revenues after $125,000 gross revenues is achieved; or 1.5% of gross revenues of $225,000 gross revenues is achieved. Due the 2nd month after the conclusion of training class. Increases to the minimum $450 (minimum $625 in 325K pop. territory) per month in the 15th month; $550 (minimum $825 in 325K pop. Territory) per month in the 30th month; $850 (minimum $1,225 in 325K pop. Territory) per month in the 45th month.
Additional Training $2,000 per person (this amount may increase in the future upon written notice from the franchisor).
Additional Assistance Paid by service fee.
Transfer $9,500 to $15,000 or 1.5% of sale price, if greater.
Audit Cost of Audit plus 10% interest on underpayment.
Renewal Fee $5,500
Minimum Annual Purchase Requirement N/A
Late Fees 10% of service fee immediately due, 0.167% each day after.

The above information has been compiled from the FDD of Visiting Angels. Year of FDD: 2016

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