SYNERGY HomeCare Franchise Costs, Fees & FDD

Year Business Began: 2001

Franchising Since: 2005

Headquarters: Tempe, Arizona

Estimated Number of Units: 575

Franchise Description: The franchisor is SYNERGY HomeCare Franchising, LLC. Franchisees operate a business that provides non-medical, in-home personal assistance, such as in-home personal care and companionship, child care, meal preparation, medication reminders, medical and social appointment scheduling and management, organizational and bill paying assistance, housecleaning services and light home maintenance to seniors, the convalescing, disabled persons and others who need help with daily living activities.
Training Overview: The franchisor will provide approximately 42.5 hours of training. Training is a comprehensive program consisting of pre-opening (start-up) and post-opening sessions. Training is held at the franchisor’s headquarters or another location it designates. Franchisees (or the owner if the franchisee is a corporation or other business entity) and the designated manager if franchisees hire a designated manager other than themselves (or the owner if the franchisee is a corporation or other business entity) must attend and successfully complete the initial training program to the franchisor’s satisfaction. From time to time the franchisor may provide, and if it does, has the right to require that the designated manager attend, ongoing training programs (in-person and/or on-line), seminars or meetings during the initial term of this agreement, any interim period, and successor terms.

Territory Granted: Franchisees must operate the franchised business only from the approved location listed in the Franchise Agreement, which should be a leased facility or shared office in a suitably located area. The approved location must be within the protected territory. Although the franchisor may assist franchisees in selecting a location, they are solely responsible for selecting the approved location and negotiating the terms of the lease. The franchisor will grant franchisees a protected territory, subject to its national partnerships program. Each protected territory will include contiguous zip codes or other physical, political or natural boundaries. Franchisees must achieve and maintain the minimum levels of average monthly gross sales as set forth by the franchisor.

Obligations and Restrictions: The franchised business must always be under the direct full-time supervision of a designated manager, which is the franchisee if the franchisee is an individual, or is an individual selected by the franchisee if the franchisee is a business entity. Franchisees may only use the approved location for the operation of the franchised business, and they must not use, or permit the use of, the premises for any other purpose or activity without the franchisor’s written consent. Franchisees must operate the franchised business in strict conformity with those methods, standards and specifications in the manual and as the franchisor may require otherwise in writing. Franchisees may not deviate from these standards, specifications and procedures without the franchisor’s written consent.

Term of Agreement and Renewal: The length of the initial franchise term is five years. Franchisees may extend their rights to operate the franchised business for five additional terms of five years each, subject to the franchisor’s conditions.

Financial Assistance: The franchisor, its agents, and its affiliates offer no financing arrangements, and the franchisor, its agents, and its affiliates do not receive payment or other consideration for the placing of financing or do not guaranty any note, lease, or obligation franchisees enter into for their SYNERGY HomeCare business. If franchisees qualify for the International Franchise Association’s VetFran program, the franchise fee is reduced by 15%.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$52,500	$52,500
Real Estate/Rent	$1,458	$6,713
Utility Deposits	$0	$365
Leasehold Improvements	$0	$1,825
Furniture, Fixtures & Equipment	$607	$3,650
Software	$911	$1,221
Computers and Printer	$1,214	$4,271
Insurance (including Fidelity/ Crime Coverage)	$3,644	$7,322
Signage	$607	$2,441
Office Equipment & Supplies	$911	$3,662
Training	$4,026	$5,876
Licenses & Permits	$0	$6,103
Legal & Accounting	$2,400	$15,493
Legal and Compliance Toolkit	$1,000	$1,000
Opening Inventory	$4,055	$6,630
Dues & Subscriptions	$0	$610
Additional Funds – 3 Months	$4,773	$39,371
ESTIMATED TOTAL (for one full territory)	$78,106	$159,053

 
Other Fees

Type of Fee	Amount
Royalty Fee	5% of gross sales.
Minimum Royalty Fee	The difference between (a) 5% of gross sales from the prior month, and (b) the royalty fee that would have been payable had the franchisee obtained the minimum sales quota.
Marketing Fund Contribution	2% of gross sales.
Minimum Marketing Fund Contribution Fee	The difference between (a) 2% of gross sales from the prior month, and (b) the royalty fee that would have been payable had the franchisee obtained the minimum sales quota.
Minimum Local Advertising Requirement	The greater of $300 or at least 2% of gross sales per month.
Advertising Service Fees and Costs	The then-current fee (which now is $250 per month) plus the cost to use an advertising firm in the protected territory.
Systems Fee	Currently, this fee is $95 per week.
Satellite Systems Fee	Currently, this fee is $12.70 per week.
Software Scheduling Fees	Varies. Dependent on number of clients.
Computer Maintenance and Updates	Approximately $150 to $1,500 for maintenance and approximately $500 to $2,000 to replace the computer.
Software Support and On-line Data Storage and Backups	Approximately $200 to $1,000.
Audit Expenses	Cost of audit.
Late Fees	The highest rate allowed by law, plus collection costs.
Expansion Fee	80% of the then-current initial franchise fee.
Insurance Policies	Amount of unpaid premiums plus the franchisor’s expenses in obtaining coverage for the franchisee (if necessary).
Transfer Fee	$25,000
Customer Service	All costs incurred by the franchisor in assisting the franchisee’s customers.
System Modifications	This amount will vary depending upon the type of modification made.
Cost of Enforcement System	All costs including attorneys’ fees and expenses.
Indemnification	All costs including attorneys’ fees and expenses.
Franchisor’s Investigative Fee	Then current fee (now $150 an hour) plus attorneys’ fees and costs.
Violation Fees	The greater of (1) $5,000 for each client serviced in the territory of another franchisee without permission, or (2) 25% of the gross revenue received.
Background Check Fees	Will vary.  Currently between $25 and $75 per caregiver.
Ongoing Training	Varies.
Ongoing Training Non-Attendance Fee	$1,500
Annual Franchise Meeting (AFM)	$650 per person.
Annual Franchise Meeting (AFM) Non-Attendance Fee	$2,000
Additional E-Mail Fees	$252 or the then-current fee, whichever is higher.
Legal and Compliance Toolkit Fee	$1,000

The above information has been compiled from the FDD of SYNERGY HomeCare. Year of FDD: 2025.
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