Franchising Since: 2006
Headquarters: Nampa, Idaho
Estimated Number of Units: 225
Franchise Description: The franchisor is Assisting Hands Home Care, LLC. Assisting Hands Home Care businesses offer non-medical, and for those that qualify, medical in-home support for those in need of assistance, temporary staffing services, and other related services and products.
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Territory Granted: The Franchise Agreement for the Assisting Hands franchise grants franchisees an exclusive territory based on the geographic area and population properties within that area and other relevant demographic characteristics. The territory will have a population of approximately 225,000 persons, and an over-65 population of at least 25,000 individuals (or incremental portion thereof) in the designated geographical location. The franchisor will define the territory by reference to specified U.S. Postal Service zip codes that will be listed in the attachment to the Franchise Agreement, or by a map which will be an attachment to the Franchise Agreement. During the term of the Franchise Agreement neither the franchisor nor any affiliate will establish or operate, or franchise any entity to establish or operate, an Assisting Hands business within the territory.
Obligations and Restrictions: The Assisting Hands franchise shall be managed by the franchisee, or if the franchisee is an entity, by one of the owners who is a person whose business skill, financial capability and personal character the franchisor relies on (the “principal owner”). The franchisor must approve the owner that will serve as the principal owner, if applicable. Under certain circumstances, the franchisor may allow franchisees to appoint a general manager to run the day-to-day operations of the Assisting Hands franchise. The general manager, if applicable, must meet the franchisor’s requirements. Neither franchisees, nor anyone owning an equity interest in the Assisting Hands business, may have an interest in or a business relationship with any business competing with the Assisting Hands business. Franchisees must sell or offer for sale only those services and products authorized by the franchisor and which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may enter into two consecutive successor franchise agreements. Each renewal term will be 10 years, for a total maximum term of 30 years.
Financial Assistance: The franchisor does not regularly offer financing for its franchises but, under certain situations, it may choose to extend financing for the initial franchise fee. The franchisor offers a 10% discount on the initial franchise fee for honorably discharged veterans of the United States armed forces.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $55,000 | $55,000 |
| Security Deposits | $500 | $4,000 |
| Insurance | $3,500 | $7,000 |
| 3-Months’ Lease Payments | $1,500 | $6,000 |
| Leasehold Improvements | $0 | $7,000 |
| Signage | $700 | $3,000 |
| Furnishings | $1,500 | $6,000 |
| Computer System and Scheduling Hardware and Software | $2,000 | $4,500 |
| Business Licenses and Permits | $150 | $500 |
| Licensing and Credentialing | $700 | $10,000 |
| Initial Training Expenses | $2,000 | $4,000 |
| Professional Fees | $2,000 | $7,200 |
| Convention Fee | $200 | $200 |
| Recruiting Expense | $2,500 | $6,000 |
| Advertising, Marketing and Promotion | $2,250 | $6,000 |
| Additional Funds – 3 months | $20,350 | $50,100 |
| ESTIMATED TOTAL | $94,850 | $176,500 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | The greater of the percentage royalty or the minimum royalty. The “percentage royalty” is 5% of gross revenue if below $48,000; 4.5% of gross revenue if between $48,000 and $95,999; and 4% of gross revenue if above $96,000. The “minimum royalty” is $50 per week per office during your first year of operations, $100 per week per office during your second year of operations; and $200 per week per office thereafter and throughout the remainder of the term. |
| National Advertising Fund Contribution | The greater of: (i) 0.5% of gross revenue; or (ii) the minimum contribution. The “minimum contribution” is currently $150 per month. |
| Convention Fee | Currently $2,400 per year billed in monthly installments of $200. If the fee has not been paid in full because the franchisee did not pay the fee for the entire preceding 12-month period, the unpaid balance will be due in the final monthly installment. |
| Local Advertising Payment | The difference between the amount the franchisee spent on local advertising each month and the required local advertising requirement. |
| Unauthorized Advertising Fee | $500 per occurrence. |
| Technology Fee | Not currently charged. The franchisor may charge up to $1,000 per month. |
| Insurance | Franchisees must reimburse the franchisor’s costs plus a 20% administrative fee. |
| Additional Training or Assistance Fee | The franchisor then-current fee (currently approximately $150) per attendee per day, plus expenses. |
| Supplier and Product Evaluation Fe | Costs of inspection (estimated to be approximately $100 to $500). |
| Payment Service Fees | Up to 4% of total charge. |
| Interest | Lesser of 18% per annum or the highest commercial contract interest rate permitted by law. |
| Insufficient Funds Fee | $100 per occurrence. |
| Late Report Fee | $100 per violation and $100 per week. |
| Audit Expenses | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000). |
| Indemnification | All amounts (including attorney fees) incurred by the franchisor or otherwise required to be paid. |
| Management Fee | The then-current fee (currently $500 per day), plus costs and expenses. |
| Legal Costs and Professional Fees | Will vary under circumstances. |
| Renewal Fee | 10% of the then-current initial franchise fee for a single Assisting Hands business. |
| Transfer Fee | 50% of the then-current initial franchise fee for a single Assisting Hands business, plus costs of training. |
| Territory Infringement Fee | $2,500 per incident and 25% of gross revenue for the first offense, 50% of gross revenue for the second offense and 100% of the gross revenue for the third and subsequent offense plus the franchisor’s costs and expenses. |
| Liquidated Damages | Will vary under the circumstances. |
| Broker Fee | In event of transfer to a third-party or purchaser, the franchisor’s actual cost of the brokerage commissions, finder’s fees, or similar charges. |
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