FirstLight Home Care Franchise Costs, Fees & FDD

Year Business Began: 2009

Franchising Since: 2010

Headquarters: Cincinnati, Ohio

Estimated Number of Units: 275

Franchise Description: The franchisor FirstLight HomeCare Franchising, LLC. Franchisees operate a franchised business that provides hands-on personal care, in-home care assistance to those requiring companion care, dementia care and assistance with the activities of daily living to seniors and other adults. Franchisees may also provide supplemental staffing services for nursing homes, hospitals, assisted living facilities and other institutional settings as well as skilled nursing care, skilled services, and other related products, material and equipment as approved by the franchisor.
Training Overview: “Flight School” is the franchisor’s initial training program. Up to two persons, the franchisee and a manager who has been designated by the franchisee and meets the requirements as the person responsible for operation of the franchised business, may attend. Prior to Flight School, franchisees will receive pre-course materials and insights to review and complete. After having completed Flight School, franchisees may also have required coursework on a designated learning management system (LMS). In all, franchisees will receive approximately 70 hours of classroom, virtual and/or on-the-job training. Franchisees will also complete between 30 to 40 hours of self-guided learning. Periodically, and on an as-needed basis, the franchisor may provide mandatory follow-up training programs in the local or regional area that the franchisee, the manager of the FirstLight Home Care Business and/or other employees must attend. Franchisees and their manager must also attend at least one of the regional or national meetings held by the franchisor each calendar year.

Territory Granted: Franchisees will operate their FirstLight Home Care Business at a specific location the franchisor accepts and identifies in the Franchise Agreement. Franchisees must have a physical location and not just a post office box physically located in the approved territory. The franchise will be granted for a protected franchised area within which the franchisor agrees not to grant another FirstLight Home Care business or open a company-owned FirstLight Home Care business as long as the franchisee is not in default under the Franchise Agreement. Generally, each franchisee is granted a franchised area that includes approximately 250,000 residents, of which approximately 25,000 are residents of age 65 or older. Continuation of the rights to the protected franchised area through the end of the term of the Franchise Agreement depends on the franchisee meeting the specified minimum performance standards.

Obligations and Restrictions: The FirstLight Home Care system is not an absentee-owner model. Although the Franchise Agreement does not obligate franchisees to do so, the franchisor strongly recommends that franchisees participate personally in the actual operation of their FirstLight Home Care business. The FirstLight Home Care business must at all times be under the direct on-premises supervision of the franchisee or a trained, competent individual who meets the franchisor’s qualifications. Franchisees may provide only those services and products approved by the franchisor as a part of or for use in connection with the FirstLight Home Care system and operation of the FirstLight Home Care business. Franchisees must provide all of the services and products listed in the operations manual or as required by the franchisor in writing.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees may, at their option, if they are in good standing, renew the Franchise Agreement for the then-current renewal term(s).

Financial Assistance: The franchisor’s affiliate, Cornerstone Finance, offers financing to select franchisees who are either purchasing existing FirstLight Home Care businesses or are conversion franchisees who meet Cornerstone Finance’s qualification requirements. Except for these instances, the franchisor does not offer direct or indirect financing to franchisees for the initial franchise fee. The franchisor does not receive direct or indirect payments for placing financing. The franchisor does not guarantee any note, loan or lease which franchisees may obtain or any obligation that they may incur in their FirstLight Home Care business.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Training Fee	$5,000	$5,000
Travel and Training Expenses	$2,050	$3,550
Business Premises	$500	$3,300
Start-Up Supplies and Inventory	$300	$900
Employment Screening	$275	$360
Equipment, Signage, Graphics	$250	$2,450
Marketing, Advertising and Promotions	$4,500	$4,500
Grand Opening Marketing	$10,000	$10,000
Other Paid Expenses	$6,050	$8,350
Business Permits, Licenses and Fees	$0	$5,000
Insurance as Required	$7,500	$18,000
Computer Equipment	$3,200	$5,200
Additional Funds – 3 to 6 Months	$38,000	$85,000
ESTIMATED TOTAL	$126,825	$218,820

 
Other Fees

Type of Fee	Amount
Royalty	During months 1-3: 5% of gross revenues received. During months 4 and going forward: 5% of gross revenues received, or a royalty based upon the minimum performance standard gross revenue amount, whichever is greater.
Payment to National Advertising Fund	The greater of 1% of gross revenues received per month or 1% of the monthly minimum performance standard. The franchisor reserves the right to increase the national advertising fund contribution requirement, but to an amount not to exceed 2% of gross revenues.
Basic Operating Platform, Cost of Basic Operating Systems	Beginning the earlier of 120 days after execution of the Franchise Agreement, attendance at Flight School or when franchisees begin to use the platform, they will pay a monthly fee of $195 to reimburse us for certain required systems.
Client Management Software (CMS) Fee	Currently between $7and $8.50 per active client per month with a $200/month minimum and a one-time implementation fee of $750.
Customer Relationship Management Software (CRM)	Currently the first seat is paid via the National Ad Fund (NAF). Additional seats are available for $30/month per seat. Additional seats are not required.
Local Marketing, Advertising and Promotion	Greater of a minimum of $1,500 or 2% of gross revenues (may include internet marketing below).
Regional Advertising Cooperative	As determined by the cooperative members.
Internet Marketing	Currently, $750 search engine marketing (SEM)/pay-per-click (PPC).
Client Satisfaction Survey Fee	All costs of conducting client and/or caregiver satisfaction surveys. Currently up to $32 per survey with monthly minimums between $32-$195/month depending on number of clients.
Transactional Fees
Additional Area Fee	$275 for all or part of every additional 1,000 people added to the franchised area.
Renewal Fee	$7,500 payable at the time of renewal.
Transfer Fee	$10,000 payable at the time of transfer.
Resale Referral Fee	Up to $10,000.
National or Regional Meeting	Currently $500 to $1,000 per attendee.
Tuition Fees for Additional Training	Currently ranges from $500 to $1,000 per attendee.
Brand Protection Fees
Sales Reports	$500 for any month, or portion of any month, that the franchisor does not have access through the franchisee’s computerized system to sales reports.
Late Payment Fee	The lesser of 18% annual rate of interest, or the maximum amount permitted by law, for the period from the payment due date until the actual date of payment on all late payments, plus any costs for collection and up to a $500 late fee for any payment not received on the due date.
Attorneys’ Fees and Disbursements, Accounting Fees and Disbursements and Court Costs	Prevailing party in a dispute between us under the Franchise Agreement is entitled to recover its expenses, including attorneys’ fees and disbursements, accounting fees and disbursements, and court costs.
Audit Fee	Costs and expenses (including attorneys’ and accountants’ fees) of audit finding understatement of gross revenues of at least 2%.
Indemnification of FirstLight Home Care Franchising for Expenses of Claims	The amounts of all losses and expenses that the franchisor incurs in connection with legal actions arising out of the franchisee’s ownership, operation, construction or improvement of the FirstLight Home Care franchise.

The above information has been compiled from the FDD of FirstLight Home Care. Year of FDD: 2025.
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