When investigating whether an elder care franchise could be the right fit for you, one of the main things you’ll be taking into consideration is the fee structure of the franchise, including start-up and ongoing fees. This information can be found in the franchise disclosure document (FDD) provided to you by the franchisor.
However, the process for comparing elder care franchises is about so much more than comparing just the numbers. It’s important to assess the value you’ll receive in return for paying these fees, from the level of support the franchisor will provide after opening day to the benefits of working under a longstanding, highly respected brand name. In fact, it’s best to consider these costs as an investment in your business success, rather than a simple purchasing expense.
That being said, any fees you pay will factor into your profit structure and income, and thus should play a crucial role as you decide which franchisor to work with. Understanding the nature of these fees and exactly how much you can expect to pay on a one-time and ongoing basis will be necessary to make an informed decision about your investment.
Understanding the Different Types of Elderly Care Franchise Fees
In the world of franchising, you can expect to encounter two types of fees: the initial franchise fee and ongoing costs, including royalty fees. Below, we’re providing an overview of what these fees represent in general and how they could impact your budget as a Senior Helpers® franchisee.
The Franchise Fee
The franchise fee is an initial, one-time payment to the franchisor. Payment of this fee is conducted upon signing the Franchise Agreement and gives you the right to acquire the franchise territory and join the franchise system. You’ll find this value disclosed in the FDD under Item 5. In some cases, the franchisor may charge different franchise fees according to the size of the franchise territory.
At Senior Helpers, we make a point of maintaining low franchise fees in order to make our elder care franchise an affordable option for entrepreneurs with varying levels of resources. As one of the most affordable franchise options in terms of the initial investment, we are lowering the barrier of entry to an industry in which a desire to help others is just as important a motivating factor as is turning a profit.
This fee can be even further discounted for qualifying individuals. For example, we offer a 15% discount on the initial franchise fee for veterans, reducing initial franchise costs by over $8,000. Additionally, we have a minority discount available that lowers the cost of getting started by $5,500.
Ongoing Fees
Ongoing fees are paid to the franchisor on a bi-weekly, monthly, or yearly basis and are either charged as a fixed rate or calculated as a percentage of the gross sales of your franchise location. The most substantial ongoing fees to consider are royalty fees. Royalties are much like licensing fees, as they cover the ongoing right to utilize the trademark and business model of the brand. They cover the ongoing and continued support received from the brand, this includes, operations training and marketing support.
As a franchise with Senior Helpers, royalty fee rates will be set at 5% of your gross sales, to be paid on a bi-weekly basis. During your first year of business operations, there is no minimum payment to be made in terms of royalties. Furthermore, franchisees who make the decision to sign their Franchise Agreement on Meet the Team Day will benefit from a reduced royalty fee of 2.5% for their initial six months in business.
Learn More About Investing in an Elder Care Franchise with Senior Helpers
Eager to learn more about the investment costs related to our elder care franchises? Contact us online or schedule a call with a member of the Senior Helpers franchise development team today!