American Family Care Franchise FDD, Profits, Costs & Fees (2024)

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.

Initial Investment

How much does it cost to start a American Family Care franchise? It costs on average between $1,228,000 – $1,779,000 to start a American Family Care franchised location.

This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.

Type of ExpenditureAmount
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

Average Revenue (AUV)

How much revenue can you make with a American Family Care franchise? A American Family Care franchised center makes on average $1,801,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

American Family Care fdd item 19 extract

This compares to $1,835,000 yearly revenue for similar primary care franchises.

American Family Care franchise competitors

American Family Care Franchise Disclosure Document

Recent Legal Disputes and Litigation

American Family Care (AFC), an urgent care franchise, has encountered legal challenges from its franchisees in recent years. These disputes often involve issues related to franchise agreements, territory protection, and promised support services.

In 2021, a notable lawsuit was filed by franchisees claiming that AFC failed to provide adequate operational and marketing support, leading to financial losses. The suit also alleged that AFC violated territorial agreements by opening new franchises too close to existing ones.

Franchisees have also raised concerns about the transparency of marketing fees and royalties. In another case, they argued that funds meant for marketing were not effectively used to promote their locations.

These disputes highlight ongoing tensions regarding operational support, territory rights, and fee transparency. The outcomes have increased scrutiny of AFC’s franchise system and may lead to policy adjustments.

Frequently Asked Questions

How many American Family Care locations are there?

As of the latest data, American Family Care (AFC) operates 434 locations across the United States, with a mix of franchise-owned and company-owned clinics. The majority of these locations, approximately 75%, are franchise-owned, showcasing the strong appeal of AFC’s franchise model within the healthcare sector.

What is the total investment required to open a American Family Care franchise?

The total investment required to open a American Family Care franchise ranges from $1,228,000 to $1,779,000.

What are the ongoing fees for a American Family Care franchise?

American Family Care (AFC) franchisees are required to pay a 6% royalty fee on gross sales and a 2% marketing fee. These fees help maintain operational support and fund regional and national marketing campaigns to grow the brand’s presence.

What are the financial requirements to become a American Family Care franchisee?

To become an American Family Care (AFC) franchisee, you need a minimum net worth of $1.2 million and at least $750,000 in liquid capital. These financial thresholds are essential for covering initial investment costs, operational expenses, and ensuring that franchisees have the resources to sustain and grow their business.

How much can a American Family Care franchise owner expect to earn?

The average gross sales for a American Family Care franchise are approximately $1.80 million per location. Assuming a 15% operating profit margin, $1.8 million yearly revenue can result in $270,000 EBITDA annually.

Who owns American Family Care?

American Family Care (AFC) was founded by Dr. Bruce Irwin in 1982. Dr. Irwin remains closely associated with the company as its founder, and AFC continues to be a privately held organization. Under his leadership, AFC has grown into one of the largest urgent care and primary care franchises in the United States.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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