ATC Healthcare Services Franchise Costs, Fees & FDD

Year Business Began: 1985

Franchising Since: 1996

Headquarters: New Hyde Park, New York

Estimated Number of Units: 45

Franchise Description: The franchisor is ATC Healthcare Services, LLC. The franchise is to operate an “ATC Healthcare Services” franchised business that provides medical professional temporary and permanent staffing solutions to healthcare facilities. Both start-up and conversion franchises are offered.
Training Overview: The training program is mandatory for all franchisees. No later than 30 days before the franchised business opens, franchisees and their manager (and any other employees or owners the franchisor requires or the franchisee requests and are approved by the franchisor to attend) must complete the initial training program to the franchisor’s satisfaction. The franchisor will provide approximately four days of training at its headquarters in New Hyde Park, New York, or it may be completed remotely, at the franchisor’s discretion. The franchisor has the right to hold periodic refresher training programs, and it may designate that attendance at refresher training is mandatory for franchisees and/or any of their personnel. The franchisor also has the right to hold periodic webinars and conference calls to provide additional opportunity for training in all areas of the business. The franchisor has the right to hold a meeting or convention of its franchisees, which will not be held more frequently than annually.

Territory Granted: Franchisees will operate the franchised business at a specific location that the franchisor first must approve. Franchisees will be granted a protected area in which the franchised business must be located. The territory will be based upon population of a minimum of 500,000 people. Except as limited in the FDD, and if 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 franchised business at a location within the territory during the term of the agreement. Franchisees must achieve a certain level of revenue, market penetration or other contingency to maintain their rights to the territory.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their contractual obligations. Brand standards may regulate the staffing levels and employee qualifications, training, dress, and appearance of the franchised business. Franchisees must participate in the day-to-day operation of the franchised business. Franchisees may also hire a manager to assist them in overseeing the franchised business’ daily operation. If franchisees will not be involved in the day-to-day operation of the franchised business for at least 40 hours per week (with accommodation for national holidays and normal deviations from traditional work weeks), they will be required to hire a full-time recruiter to operate the business and a full-time business development associate to develop the business within 30 days of signing the Franchise Agreement. If franchisees are a married individual, their spouse must sign the Spousal Guaranty. Franchisees must offer all products and perform all services that the franchisor periodically requires for ATC Healthcare services businesses.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If the franchisor is still franchising and the franchisee is in good standing, s/he may renew the franchise for two additional terms of five years each.

Financial Assistance: The franchisor’s affiliates do not offer, directly, any arrangements for financing the initial investment or for the operation of the franchised business. The franchisor will not guarantee a franchisee’s note, lease or other obligations. However, the franchisor has a program called the Experience Success Program (ESP) which is designed to attract potential franchisees who have at least five years’ experience as a branch manager or equivalent in a staffing company and meets other qualifications based upon their work experience. In addition, the franchisor may provide franchisees with contact information for lenders that can assist them with their financing needs.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Rent – 12 Months	$12,000	$60,000
Leasehold Improvements	$0	$5,000
Equipment, Furnishings and Fixtures	$2,000	$5,000
Signage	$200	$7,500
Blueprints/Plans	$0	$1,000
Initial Inventory	$1,000	$1,000
Security Deposits	$1,000	$2,000
Insurance – 12 Months	$3,000	$4,000
Travel and Living Expenses While Training	$2,000	$4,500
Computer System	$3,000	$5,000
Permits/Licenses	$500	$1,500
Professional Fees	$1,500	$2,500
Online Employee Search	$1,000	$2,000
Initial Marketing Fee	$10,000	$10,000
Additional Funds – 9 Months	$71,300	$140,500
ESTIMATED TOTAL (for a new single unit franchise)	$158,500	$301,500

 
Other Fees

Type of Fee	Amount
Royalty Fee	a) 45% of gross margin for revenue generated by temporary employee placements; and b) 45% of gross margin for revenue generated by temp-to-hire perm placements; and c) 30% of gross margin for revenue generated by permanent employee placements.
Local Advertising	$500 or 2% of total revenue, whichever is greater.
Brand Development Fee	1% of total revenue.
Advertising Cooperative	The franchisee’s pro rata share of the total advertising cost incurred by the cooperative.
Additional Training On-Site	The then-current per diem fee, plus reimbursement of expenses. Current per diem fee = $800 to $1,200.
Transfer Fee	$15,000 in general; $7,500 if the transfer is to an immediate family member; $7,500 for additional territories that are being transferred at the same time to the same entity; $1,000 for transfers among existing owners of the franchised business.
Renewal Fee	$5,000
Delinquent Accounts	55% of the sale amount in the delinquent invoice, if franchisees are in compliance (with them receiving 45% of said sale amount or collection). 100% of the delinquent invoice, if you are not in compliance.
Indemnification	Will vary under circumstances.
Costs and Attorneys’ Fees	Will vary under circumstances.
Management Fee	The then-current per diem fee, plus reimbursement of the representative’s expenses. Current per diem fee = $800 to $1,200.
Computer Fees (Maintenance and Updates)	$1,000 annually.
Liquidated Damages	The amount equal to the average monthly royalty fees paid or owed to the franchisor during the 12 months of operation preceding the effective date of termination multiplied by 24 (being the number of months in two full years).
Repair, Maintenance, and Remodeling/ Redecorating	Will vary under circumstances not to exceed $2,500.
Insurance and Bonds	Reimbursement of the franchisor’s costs.
Interest on Overdue Amounts	1.5% per month or the highest rate allowed per law, whichever is less.
Audit	Cost of the audit.
National or Regional Account Fee	$1 per service hour.
Fidelity Bond	$500 to $1,000 annually.
Franchisee Meetings	Up to $1,500 per person plus travel, lodging, meals and wages of attendees.
Product and Supplier Evaluation Fee	Up to $1,000.
Technology Fee	$1,000 monthly.
Human Resources Information System (HRIS)	$2 per active employee.
Recruitment Effort Cost	1% of total revenue.
Document Execution Software Fee	$3.10 to $5.50 per envelope sent monthly.
Employee Rewards Program (optional)	Varies, depends on employee’s choice of reward.
Professional Employer Organization (PEO)	$100 per staff employee plus the cost of medical insurance.
Accreditation & Certification	$90 per month per state.

The above information has been compiled from the FDD of ATC Healthcare. Year of FDD: 2025.
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