Franchising Since: 2007
Headquarters: Roseville, California
Estimated Number of Units: 275
Franchise Description: The franchisor is ABCSP, LLC. The franchisor offers franchises for businesses that will provide the public with non-medical in-home personal care, skilled in-home nursing services and assisted living/residential care placement services using the franchisor’s distinctive system under the name “Always Best Care Senior Services.”
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Territory Granted: The Franchise Agreement grants franchisees the right to operate an Always Best Care Senior Services business at a particular street address known as the “franchised location,” which will be a small office space. The franchisor will grant franchisees a territory with certain non-exclusive rights (the “assigned area”). Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. If franchisees are in compliance with the Franchise Agreement during its term, the franchisor will not establish or operate or license others to establish a franchised location within the assigned area. The assigned area will be identified in the Franchise Agreement by contiguous zip codes, street boundaries, city boundaries, or county boundaries, and a typical assigned area is an area containing between 200,000 and 250,000 people, as determined by the latest U.S. Census data. The boundaries of the assigned area will not change, regardless of increases or decreases in the population of the assigned area.
Obligations and Restrictions: If franchisees do not directly oversee the operation of their franchised business on a full-time basis, the franchised business must at all times be under the direct supervision of a manager who has satisfactorily completed the initial training programs and who devotes his/her full business time, energy and effort to the management and operation of the business. If franchisees do not employ a manager, then they are required to personally oversee the operation of the franchised business. Franchisees must use the franchised location solely for the operation of an Always Best Care Senior Services business. Franchisees must keep the franchised business open and in normal operation for the minimum hours and days as the franchisor specifies, subject to applicable law. Franchisees must not use or permit the use of the franchised business for any other purpose or activity at any time without first obtaining written consent. Franchisees must operate the franchised business in strict conformity with the methods, standards and specifications the franchisor may require in the manual or in writing.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal terms of 10 years each are available, subject to performance of contractual requirements.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or any other obligation. The franchisor participates in the VetFran and MinorityFran programs, through which it will reduce the initial franchise fee for qualified applicants by 5%. The MinorityFran program discount and the VetFran Program discounts cannot be combined.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $49,900 | $49,900 |
| Travel and Other Expenses While Training | $3,000 | $6,000 |
| Rent – 3 Months | $3,000 | $6,000 |
| Leasehold Improvements | $0 | $3,000 |
| Furniture and Fixtures | $1,500 | $3,000 |
| Signage | $500 | $2,000 |
| Office Equipment | $5,000 | $8,000 |
| Insurance – Full Year Premium | $3,000 | $6,500 |
| Miscellaneous Opening Costs | $200 | $1,000 |
| Grand Opening Inventory | $500 | $1,000 |
| Advertising | $1,500 | $1,500 |
| Computer Equipment, Software and Printer | $2,000 | $5,000 |
| Permits/Licenses/Policies and Procedures Manual | $125 | $18,000 |
| Professional Fees | $2,500 | $5,000 |
| Additional Funds – 3 Months | $17,000 | $30,000 |
| ESTIMATED TOTAL (without skilled nursing component) | $89,725 | $145,900 |
Other Fees
| Type of Fee | Amount |
| Royalty | 6% of gross sales per month or a minimum royalty of at least $500 (with an initial minimum gross sales of $8,333.33 per month), whichever is higher for the first 12 months of operation. Each year thereafter, the minimum gross sales and the minimum royalty will increase. |
| Skilled Care Royalty | 6% of gross sales for skilled nursing services from any payer source excluding Medicare. 4% of gross sales for skilled nursing services reimbursed by Medicare. |
| Franchisee Advertising Fund Contribution | The greater of: (i) 2% of gross sales (not including gross sales on skilled nursing services) or (ii) $300 per month ($100 per month for 2nd and each additional franchise agreement if franchisees are a multiple franchise owner). |
| Local Advertising Expenditure | $800 |
| Initial Training Program – Additional and New Employees | $1,000, plus expenses. |
| Additional On-Site Assistance | The then-current per diem rate per trainer, plus expenses. The current per diem fee is $500. |
| Franchise Agreement Transfer Fee | $10,000 |
| Franchise Assignment Fee | $500 |
| Franchise Agreement Renewal Fee or Subsequent Franchise Agreement Fee | $10,000 |
| Technology Cost | $175 |
| Interest on Overdue Amounts | Lower of 18% APR or highest rate permitted by law. |
| Audit | The amount of any deficiency, plus interest. |
| Supplier’s Review Fee | Reasonable cost of inspection and actual cost of test, not to exceed $1,000 per application. |
| Insurance Procurement | 150% of amount of unpaid premiums. |
| Cost of Enforcement | All costs including attorneys’ fees. |
| Indemnification | All costs including attorneys’ fees. |
| Refresher Training Fee | $500 per day to a maximum of 5 days per instance. |
| NSF Fee | $50 |
| Late Fees | $500 for each payment, report or corrective action that is late as described in the manuals. |
| Annual Convention Fee | $500-$750 |
| Holdover Fees | 150% of the fees which would have been due to the franchisor if the Franchise Agreement had neither terminated nor expired. |
| Business Non-Compliance Fee | 150% of the franchisor’s cost of providing services to clients which a Franchise Agreement or Client Services Agreement requires the franchisee to provide. |
| Management System (Delinquency Charge) | $500 per instance the franchisee fails to submit reports in the manner required in the manual. |
| Termination Damages | See FDD. |
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