Nurse Next Door Franchise Costs, Fees & FDD

Year Business Began: 2001

Franchising Since: 2006

Headquarters: Vancouver, British Columbia, Canada

Country of Origin: Canada

Estimated Number of Units: 210

Franchise Description: Nurse Next Door Home Healthcare Services (USA) Inc. is the franchisor. Franchisees will operate a business using the Nurse Next Door business system that provides non-medical care and skilled nursing services to clients with varying needs within their home. Franchisees may also offer supplemental healthcare staffing to institutional clients, such as hospitals, retirement facilities and clinics, as well as providing other ancillary and related services. Franchisees may also provide care for clients with funding from the Department of Veterans Affairs and certain other government funding programs.
Training Overview: Commencing immediately upon signing the Franchise Agreement, the franchisor’s team will guide franchisees through its franchise opener program “Countdown to Launch,” which will help them get their business ready for launch and prepare them for the Foundations Training Program. Prior to the opening of the franchised business, the franchisor will provide franchisees with a Foundations Training Program, components of which may be conducted online and consists of a training course of up to five days duration at the franchisor’s corporate office, HeartQuarters, in Vancouver, British Columbia, Canada, or another location designated by the franchisor. Attendance is mandatory at the Foundations Training Program, and it must be completed within 12 weeks of signing the Franchise Agreement. The franchisor may provide additional start-up assistance or refresher courses at its discretion. The franchisor may require franchisees or their employees to attend at their own expense and successfully complete retraining, refresher or continuing educational seminar programs or courses. Franchisees may receive additional training at the annual convention, if the franchisor holds one. The franchisor will provide continuing advice and guidance to franchisees in all aspects of the use of the system and the operation of a franchised business with respect to the planning, opening and operation of the franchised business, including consultation and advice regarding marketing, training and general business operations.

Territory Granted: Franchisees are granted a protected territory, subject to certain exceptions. The franchisor will grant franchisees a territory that will have at least 10,000 resident senior citizens as determined by the most current United States census data available, unless the parties mutually agree otherwise (i.e. a territory has approximately 9,000 resident senior citizens but a franchisee wants to purchase such territory despite the lower number). Because territory grants are based on information provided by the U.S. census data, the franchisor cannot guarantee or promise that there will be 10,000 senior citizens in the territory. The franchisor will not grant another franchisee a territory within existing territory based on an increase of the resident senior citizens population. Franchisees are not allowed to accept clients outside the territory, subject to certain exceptions.

Obligations and Restrictions: The franchise’s principal owner must participate personally in the direct operation of the franchised business. In limited circumstances, the franchisor may allow franchisees to hire a general manager who has successfully completed the Foundations Training Program and who meets the franchisor’s approval to run the franchised business. A general manager who meets the franchisor’s approval is not required to own an equity interest in the franchised business. Each of the owners must sign the Franchise Agreement and be personally liable for performance of the obligations under the Franchise Agreement. Franchisees may only offer and sell those products and services that have been approved. Franchisees must offer all products and services that have been designated as required for all franchisees. Franchisees may participate in Medicare, Medicare Advantage or other federal governmental payor programs, and in State Medicaid and Medicaid Waiver programs if they meet the applicable requirements.

Term of Agreement and Renewal: The length of the initial franchise term is five years from the start date. One additional five-year term is available, if the conditions are met.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees, except that under very limited circumstances and at its sole discretion, the franchisor may finance the initial franchise fee and technology start-up fee for the purchase of additional territories.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$72,000	$72,000
Technology Start-up Fee	$8,000	$8,000
Pre-Opening Branding and Promotion	$7,000	$7,000
Foundations Training Program	$0	$4,000
Office Equipment and Supplies	$500	$3,000
Legal and Accounting	$5,000	$10,000
Leased Premises	$0	$5,000
Utility Deposits	$	$500
Local Marketing (including online)	$1,000	$2,000
Insurance (excluding worker’s compensation)	$2,500	$4,800
Worker’s Compensation Insurance	$2,000	$15,000
Crime Insurance (1st and 3rd Party)	$400	$1,500
State Bonds	$0	$200
Vehicle	$0	$1,000
Computers and Related Peripherals	$500	$3,000
Licenses and Permits	$200	$5,000
Consultant and/or Director of Nursing	$0	$15,000
Accreditation	$0	$8,500
Google Workplace Costs for first 3 months (system used to monitor Caregiver attendance in real time)	$15	$100
Additional Funds - 3 to 6 Months / Working Capital	$20,000	$50,000
ESTIMATED TOTAL	$119,115	$215,600

 
Other Fees

Type of Fee	Amount
Royalty	5% of gross sales, subject to annual minimum royalties.
Care Services Center	Generally, the greater of 7% of gross sales or $300.
Technology Maintenance Fee	$500
Technology User Fee	$4.65 per caregiver; $21.00 per franchisee and care designer account.
License Costs	As assessed by the franchisor for any third party licensing fees.
General Branding Fund Fee	1% of gross sales.
Local Marketing (including online)	Greater of $1,000 or 2% of gross sales, to a maximum of $2,000.
Regional Branding Cooperative	Pro rata share (based on the number of franchises in the region) of actual costs.
Additional Training	$500 to $2,000
Renewal	10% of the then-current franchise fee.
Audit	All actual costs and expenses associated with the audit (approximately $1,500 to $5,000) plus a $10,000 fine in certain cases.
Annual Convention	$500 to $1,000 (per attendee).
Transfer	$7,500 for transfer to an existing franchise partner and $15,000 for transfer to a purchaser outside of the system.
Administrative Fee – Certain Other Ownership Changes	$500 to amend franchise agreements upon ownership changes (by individual franchisees to a company with new minor owners, from one controlled company to another, among existing franchisee company owners).
Interest	2% per month compounded (26.82% percent per annum) or the highest rate allowed by the state where the franchisee is located.
Indemnity Costs	Depends upon the size of the loss for which the franchisee is required to indemnify the franchisor.
Liquidated Damages	An amount equal to the franchisee’s projected royalty for the lesser of the remaining term or three years.
Liquidated Damages (violations of franchisor’s standards)	$25 to $500 (per week per violation).

The above information has been compiled from the FDD of Nurse Next Door. Year of FDD: 2024.

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