American Family Care Franchise Costs $1.2M – $1.7M (+ 2024 Profits)

American Family Care (AFC) was founded in 1982 by Dr. Bruce Irwin and began franchising in 2008. Headquartered in Birmingham, Alabama, AFC has established itself as a major player in the urgent care and primary care sectors. 

AFC distinguishes itself in the healthcare market with its efficient business model and commitment to high-quality medical services that include urgent care, primary care, and occupational medicine. 

The franchise offers extensive support to its franchisees, including training in operational practices, healthcare management, and patient care standards. AFC’s business model is also designed to be accessible to franchisees with or without medical experience, making it an attractive option for entrepreneurs looking to enter the healthcare industry.

Type of Expenditure	Amount
Initial Franchise Fee	$60,000
Travel and Living Expenses While Training	$1,500 – $3,000
Lease, Utility and Security Deposits	$6,000 – $10,000
Medical Equipment	$125,000 – $155,000
Construction	$627,000 – $829,000
Furniture	$10,000 – $15,000
Office Equipment & Computer System	$12,000 – $17,000
Initial Medical Supplies	$15,000 – $20,000
Initial Advertising and Grand Opening	$35,000 – $50,000
Business License & Permits	$500 – $2,500
Signage	$8,000 – $30,000
Legal/ Professional Fees	$5,000 – $10,000
Insurance – GL and Malpractice	$13,000 – $17,000
Recruitment	$3,000 – $50,000
Credentialing	$4,500 – $7,000
Additional Funds (3 months)	$300,000 – $500,000
Total	$1,228,000 – $1,779,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial franchise fee is $60,000, payable in a lump sum upon signing the Franchise Agreement.

Royalty Fee

The Royalty Fee is 6% of the Net Payments of the Franchised Business, calculated on a weekly basis.

Marketing/Advertising Fee

The Marketing Fee is 1% of the Net Payments, contributing to the marketing fund.

Transfer Fees

The Transfer Fee for the franchise is $10,000, with a brokerage fee of $25,000 also applicable unless waived under specific conditions.

Renewal Fees

The Renewal Fee is $5,000, applicable upon the renewal of the franchise agreement.

Franchise pros and cons

The Pros:

• Multiple revenue streams: Primary care, urgent care and occupational medicine attract revenue from a large client base. Franchisees can expand their services to include an on-site pharmacy.
• Innovative technology: Innovative solutions such as TeleCare give franchisees a competitive edge by providing quality healthcare services.
• More in-house services: High touch approach with on-site x-ray equipment and lab handles more services, increasing the revenue potential.
• Industry-leading training and support: The support team walks new franchise owners through the opening process. It includes research and development, marketing support, ongoing training and IT systems.
• Area developer program: Allows franchisees to run multiple units with little effort.
• Few employees: Unlike the standard facilities, an American Family Care franchise only needs 8 employees to operate, lowering the running costs.
• Financing support: Franchisees can rely on the company’s relationships with 3rd party funding sources to cover the cost of equipment, franchise fee, startup costs and inventory.
• Thorough pre-opening process: Franchisees complete extensive pre-opening training to become familiar with the franchise operations. The training is centered on the franchisor’s culture and time-tested methodology and runs for about 2 and a half days at the Alabama HQs.
• Exclusive territory: Exclusive territory protection translates to a satisfying experience without worrying about competition from other American Family Care franchises.
• No mandatory medical background: Only business experience is necessary.

The Cons:

• No absentee ownership: The franchisor doesn’t allow absentee ownership.
• Not a part-time investment opportunity: An American Family Care franchise isn’t a part-time business.
• Not a mobile unit/home-based opportunity: Franchises must operate from physical locations.

How to open a American Family Care franchise

Opening a American Family Care franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a American Family Care franchise.

1. Research and Initial Contact

• Explore the Franchise: Gather information about AFC’s franchise model, the healthcare services it offers, and its market presence.
• Contact AFC: Reach out through their official franchise website to express interest and request more detailed franchise information.

2. Review Franchise Disclosure Document (FDD)

• Receive and Review the FDD: AFC will provide a Franchise Disclosure Document that contains all the essential information about the franchise opportunity, including investment details, fees, and legal obligations.
• Consult Professionals: It’s advisable to review the FDD with a lawyer and a financial advisor to fully understand your commitments and rights.

3. Financial Qualification and Approval

• Financial Assessment: Assess your financial situation to ensure you meet the required liquidity and net worth requirements set by AFC.
• Formal Application: Submit a formal application to demonstrate your financial capability and your interest in becoming a franchisee.

4. Interviews and Approval

• Initial Interview: Participate in initial interviews and meetings to discuss your application and potential as a franchisee.
• Approval Process: Pass through the franchise approval process which may include background checks and further interviews.

5. Training and Certification

• Training Program: Undergo comprehensive training provided by AFC, which includes both business operations and medical services training.
• Certification: Obtain any necessary medical or business operations certifications as required by AFC.

6. Site Selection and Setup

• Choose Location: Identify and secure a location for your AFC franchise that meets the brand’s criteria and market needs.
• Clinic Setup: Set up your clinic in line with AFC’s specifications, ensuring all equipment and facilities meet their standards.

Disclaimer

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