Homewatch CareGivers Franchise Costs $92K – $154K (+ 2024 Profits)

Homewatch CareGivers, founded in 1980 by Paul Sauer, is a distinguished provider of home care services with a strong focus on quality and compassion. The company began franchising in 1996 and is headquartered in Columbia, Maryland. The franchise has expanded significantly both nationally and internationally under the ownership of Authority Brands, LLC, emphasizing its commitment to being a premier provider of home care services.

Homewatch CareGivers differentiates itself in the market by offering a full range of personalized care services that cater to various needs, including senior care, after-hospital and after-surgery care, childcare, and care for those with chronic conditions. Their services are not only limited to personal and companion care but also extend to more complex nursing and skilled care requirements.

The franchise is recognized for its innovative approach to care, particularly through its emphasis on training and support for franchisees. This includes comprehensive pre-training and classroom training, as well as a 52-week Business Implementation Program to ensure successful franchise operations.

Type of Expenditure	Amount
Franchise Fee	$50,000
Telephone System	$250 – $500
Training Expenses	$2,000 – $5,000
Office Equipment and Computer Hardware and Off-the-Shelf Software	$1,000 – $4,000
Lease and Security Deposits	$3,000 – $8,000
Office Furniture	$1,000 – $4,000
Insurance	$8,000 – $18,000
Compliance Toolkit Fees	$1,500
Licenses, Permits, and Professional Fees	$500 – $8,000
Additional Funds (3 months)	$25,000 – $55,000
Total	$92,000 – $154,000

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 for the Homewatch Caregivers franchise is $50,000. This fee is due upon signing the Franchise Agreement and can be paid in a lump sum or financed.

Royalty Fee

An ongoing royalty fee is charged, amounting to 5% of Gross Revenue or the Minimum Royalty, whichever is greater.

Marketing/Advertising Fee

The Brand Fund contribution and local marketing fees include a $24,000 annual fee or 3% of Gross Revenue, plus a requirement to spend at least $500 monthly on additional local marketing.

Technology Fee

A monthly technology fee of $175 is required, covering 2 branded email addresses. Additional email addresses cost up to $50 each per month.

Transfer Fees

The standard transfer fee is $10,000. Additional fees may apply if the transfer involves a third-party referral or if the franchisor identifies the purchaser.

Renewal Fees

The renewal fee is typically $5,000, payable upon signing the successor Franchise Agreement.

Franchise pros and cons

The Pros:

• Passive investment opportunity: The franchise allows for absentee ownership arrangements. Franchisees can still have other obligations alongside their Homewatch caregiver clinics.
• Exclusive territory protection: The franchisor grants its franchisees the right to operate in a protected area. It provides its franchisees with great growth potential without other competing Homewatch Caregiver franchises in their locations.
• Marketing and advertising: The franchisor has established result-driven marketing and advertising strategies to help its franchisees with their lead generation and public relations. It offers them national media, regional media, online marketing, SEO, email marketing and targeted local center promotional campaigns.
• Comprehensive training and support: Homewatch Caregivers provides its franchisees with 80 hours of classroom training and ongoing support to equip them with the basics of the business, operational and staff management training and how to carry out a successful grand opening.
• Third-party financing: The brand offers its franchisees third-party funding to cover their startup costs, franchise fee, equipment, inventory, accounts receivable and payroll.
• Site selection assistance: The franchisor provides its franchisees with site selection criteria to identify a suitable clinic location.

The Cons:

• Not a home-based business: The franchise cannot be operated from home or a mobile unit. Franchisees must have an office space, a retail facility or a warehouse.
• Not a part-time opportunity: The franchisees must have their clinics open on a full-time basis for at least 40 hours per week.
• Competition: Its competitors include Comfort Keepers and BrightStar Care, among others.

How to open a Homewatch CareGivers franchise

Opening a Homewatch CareGivers 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 Homewatch CareGivers franchise.

1. Initial Inquiry and Research

• Understand the Business: Learn about Homewatch CareGivers, its history, services, and the market it serves.
• Contact the Franchisor: Reach out through their website or via phone to express interest and request more information about the franchise opportunity.

2. Review Franchise Disclosure Document (FDD)

• Obtain and Review FDD: You will receive the Franchise Disclosure Document that details all the essential information about the franchise, including investment requirements, fees, and legal obligations.
• Consult Professionals: It is advisable to review the FDD with a lawyer and a financial advisor to fully understand the financial and legal implications.

3. Financial Planning and Approval

• Financial Assessment: Evaluate your financial readiness, ensuring you meet the capital requirements for starting a franchise.
• Secure Financing: Explore financing options if necessary. Homewatch CareGivers may provide guidance on financing or have arrangements with lenders.

4. Application and Approval Process

• Submit Your Application: Fill out the formal application form, providing detailed information about your financial, business, and personal background.
• Interview and Approval: You may need to attend interviews or discussions with the franchisor to discuss your application and ensure a mutual fit.

5. Training and Preparation

• Pre-Training Program: Engage in a pre-training program that prepares you for the comprehensive training ahead.
• Classroom Training: Attend the mandatory week-long training at the Homewatch Support Center in Denver, CO, which covers all aspects of running the franchise.

Disclaimer

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