1Heart Caregiver Services
1Heart Caregiver Services offers non-medical homecare services to elderly and other adults requiring assistance with healthcare needs. Known for specialized caregiving, it operates in the home care services industry.
1Heart Caregiver Services franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open a single 1Heart Caregiver Services franchise ranges from $126,735 to $155,623. This includes $61,500 that must be paid to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee depends on the number of Territories you are granted and is calculated as follows: $60,000 for one Territory; $100,000 for two Territories; $135,000 for three Territories; $165,000 for four Territories; and $185,000 for five Territories. For each additional Territory beyond five, the fee is an extra $20,000 [p.14]. This fee is fully earned upon execution of the agreement and is non-refundable [p.14, p.79].
What are the ongoing royalty and advertising fees?
The franchisee must make minimum royalty payments regardless of sales levels [p.5]. Additionally, there is an Extraterritorial Royalty of five percent (5%) of Gross Revenue from clients outside the Territory in addition to regular royalties and minimum royalties [p.18]. This isn't specified in the excerpts for standard ongoing advertising fees, but the company administers a marketing fund where a percentage of gross sales is collected for various forms of advertising for the 1HCS Franchising brand [p.165].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's term length isn't specified in these excerpts. However, according to [p.81], you have the right to renew your franchise at the expiration of the term by entering into a new franchise agreement with the franchisor for a ten (10) year renewal term, provided certain conditions are met.
Can I sell or transfer my franchise, and what does that require?
You must obtain and deliver a bona fide, executed written offer or proposal to purchase, along with all pertinent documents including any contract or due diligence materials, to the Franchisor before selling or transferring your Franchised Business (or any of its assets outside of the normal course of business), except when transferring to a family member. [p.115] For transfers to family members, the terms and conditions of this section do not apply, but you still need to comply with Section 18.2 prior to such a transfer. [p.115]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law, as stated on [p.199]. Additionally, the franchisor may terminate the Brand Fund at any time under certain conditions, and can terminate the franchise agreement for a material default that is uncured or incapable of cure, which also provides territorial protection termination, according to [p.36].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not detail specific net worth or liquid capital requirements for qualification as a franchisee. However, it recommends having additional funds available to cover operating expenses during the first 3 months of operation [p.22].
Do I get an exclusive or protected territory?
Yes, you will receive an exclusive territory or territories designated by specific zip codes, as mutually agreed upon by Franchisor and Franchisee [p.77]. You are responsible for operating the Franchised Business within these designated areas and limiting direct marketing activities to them [p.77].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that covers essential aspects of operating the franchise, including specific manuals and operational topics. Additionally, during the first 180 days of operations, the franchisor will spend at least one day reviewing and advising on your business operations. Ongoing support includes webinar conferences as deemed necessary to assist in establishing and developing your business [p.29]. This isn't specified in the excerpts for ongoing training beyond the initial period.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can share financial performance information if there is a reasonable basis for it. This can include actual records of existing outlets or supplementary information provided by the franchisor [p.51]. However, the franchisor does not make any financial performance representations other than what may be included in Item 19, and they do not authorize their employees to make such representations either orally or in writing [p.58].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those services and products that are approved by the franchisor, which must strictly conform to the requirements and specifications set out in the Operations Manual. You may not sell any product or service at your Franchised Business except those approved by the franchisor. Additionally, you must buy or lease items from the franchisor or a limited group of suppliers designated by them; these items may be more expensive than similar items available on the open market [p.4, p.24].