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Visiting Angels Franchise Costs $125K – $171K (2024 Fees & Profits)

Visiting Angels is a prominent franchise specializing in senior home care services. Founded in 1998, Visiting Angels has grown into a reputable network of independently owned and operated franchised agencies committed to providing high-quality in-home care for seniors.

The company is headquartered in Bryn Mawr, Pennsylvania, and has expanded its operations across the United States and internationally, reflecting its successful business model and commitment to elder care.The franchise began offering opportunities to entrepreneurs shortly after its inception, creating a broad network that supports the needs of seniors who wish to remain in the comfort of their own homes.

Visiting Angels provides a range of services including companionship, personal care, respite care, dementia care, and Alzheimer’s care, tailored to meet the unique needs of each client. Their caregivers assist with daily activities, meal preparation, light housekeeping, and medication reminders, ensuring seniors can live independently and safely.

Initial investment

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.

Franchise fees & Royalties

Initial Franchise Fee

The Initial Franchise Fee ranges from $51,950 to $89,950 depending on the size of the territory. For a standard protected territory of 200,000 population, the fee is $64,950. If the territory exceeds 325,000 in population, the fee is $89,950. Fees for purchasing an existing franchise range from $15,950 to $22,950, depending on the territory size.

Royalty Fee

The Royalty Fee is 3.5% of total gross revenues, decreasing to 3.25% after reaching $125,000 per month, and to 3.0% after $225,000 per month. Minimum fees apply, starting at $495 per month, increasing over time up to $1,595 per month for franchises in a renewal term.

Marketing/Advertising Fee

The Marketing/Advertising Fee starts at $425 per month or 2.5% of gross revenues if higher, decreasing to 2.25% after $150,000 per month, and to 2.0% after $250,000 per month. The minimum fee increases over time, up to $895 per month by the 60th month.

Transfer Fees

Transfer fees for selling a franchise range from $9,500 to $25,000 or 2.5% of the sale price, whichever is greater. The fee varies based on the sale price of the business.

Renewal Fees

The Renewal Fee is $10,000, payable 30 days before the renewal of the franchise agreement.

Management Fees

The management fees include costs for additional training ($3,500 per person), email accounts ($20-$120 per user per year), and potential late fees (10% of service fee, plus daily interest). Additional assistance is billed monthly as a service fee.

Franchise pros and cons

The Pros:

  • Exclusive territory protection: The franchisor allows its franchisees to operate in an exclusive territory. As long as the franchisees comply with the agreement, it does not allow other franchises to operate or establish competing businesses in the protected territory.
  • Low staff and inventory requirements: The franchise can be run by a minimum of one staff member and has low inventory requirements, making it simple to operate with minimal operating costs.
  • Pre-opening training: The franchisor has a comprehensive training program to help franchisees get on board and run their franchisees smoothly. Also, it offers them growth strategies and ongoing training on customer service and operations.
  • Marketing and public relations: Visiting Angels provides its franchisees with marketing and advertising strategies tailored to help them attract customers and reach a wider geographical coverage. Franchisees get access to co-ops advertising, web development, email marketing, national media and regional advertising programs.
  • Third-party financing: The franchisor has established third-party relationships to offer franchisees financing. It helps them fund their start-up and ongoing costs.
  • Site selection: Visit Angels helps its franchisees identify a strong territory for setting up their shops and guidance in developing their franchises.

The Cons:

  • Not a passive investment: The franchise does not allow for absentee ownership. Franchisees must be actively involved in the decision-making and operations of their franchises.
  • Not a home-based opportunity: The franchise cannot be run from home or a vehicle. The franchisees must have a fixed office space, retail facility or warehouse.
  • Not a part-time business: The franchisor requires its franchisees to operate on a full-time basis for at least 40 hours per week.

How to open

1. Research the Franchise Opportunity

  • Understand the Business Model: Learn about the services provided by Visiting Angels, including senior home care, companionship, personal care, and specialized services.
  • Market Analysis: Assess the demand for senior care services in your area to ensure there is a viable market.
  • Financial Requirements: Review the initial investment, royalty fees, and ongoing costs associated with opening a Visiting Angels franchise.

2. Request Information

  • Contact Visiting Angels: Reach out to the franchise development team to request more information and express your interest in opening a franchise.
  • Franchise Disclosure Document (FDD): Obtain and thoroughly review the FDD, which includes important details about the franchise agreement, fees, and obligations.

3. Attend a Discovery Day

  • Meet the Team: Participate in a Discovery Day event to meet the corporate team and current franchise owners.
  • Detailed Overview: Gain a comprehensive understanding of the franchise operations, support systems, and training programs.
  • Ask Questions: Clarify any doubts and ask specific questions about the day-to-day operations and long-term support.

4. Secure Financing

  • Explore Financing Options: Investigate different financing options, such as SBA loans, personal savings, or partnerships.
  • Financial Plan: Develop a detailed financial plan outlining the startup costs, working capital, and projected revenues and expenses.
  • Approval Process: Work with Visiting Angels’ franchise team to ensure you meet their financial requirements and secure necessary funding.

5. Sign the Franchise Agreement

  • Legal Review: Have an attorney review the franchise agreement to understand your rights and obligations.
  • Agreement Signing: Once satisfied, sign the franchise agreement and pay the initial franchise fee.
  • Franchise Onboarding: Begin the onboarding process, which includes initial training and setting up your franchise location.

6. Complete Training

  • Initial Training Program: Attend the comprehensive training program provided by Visiting Angels, covering all aspects of running the franchise.
  • Ongoing Support: Take advantage of ongoing training and support services offered by the franchisor, including marketing, operations, and caregiver recruitment.

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.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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