Home Matters Caregiving Area Representative
Home Matters Caregiving provides non-medical in-home personal care services under a distinctive system. Known for offering support to seniors and those needing assistance at home, this franchise operates within the caregiving sector.
Home Matters Caregiving Area Representative franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Home Matters Caregiving franchise ranges from $99,525 to $207,000 for a territory with a population of up to approximately 200,000 people [p.1]. This includes an initial franchise fee of $52,000 [p.9], which can increase based on the size of the territory you purchase [p.17].
What is the initial franchise fee?
The initial franchise fee for a Unit Franchise is $52,000 [p.9], which provides a Protected Territory with a population of up to approximately 200,000 people. This fee is fully earned upon payment and is not refundable under any circumstances [p.9].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is determined as a percentage of franchise unit revenue and is recognized in the same period as related sales occur [p.158]. Additionally, there is a Brand Development Fee payable to the Brand Development Fund at an amount equal to one percent (1%) of Gross Revenue, which is also due at the same time and in the same manner as the Continuing Royalty Fee [p.62]. This fee supports general public recognition and acceptance of the Marks and improves the collective success of all Home Matters Caregiving Businesses operating under the System [p.27].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. However, it generally allows for renewal upon expiration subject to the Company's approval and payment of a renewal fee [p.158].
Can I sell or transfer my franchise, and what does that require?
Yes, you can transfer your franchise, but it requires the approval of the franchisor due to good cause [p.181]. Additionally, a transfer fee must be paid; it is $5,000 if transferred to an existing franchisee or multi-unit developer, and $10,000 for a new multi-unit developer [p.6, p.81].
On what grounds can the franchisor terminate the agreement?
According to [p.181], the franchisor can terminate the franchise agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and the franchisee fails to cure such failure after being given written notice and a reasonable opportunity, which cannot exceed thirty (30) days. This is specified as good cause for termination. [p.187] further emphasizes that terminations must have 'reasonable cause' as defined by Virginia law, though it does not specify all grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific financial requirements such as net worth or liquid capital needed to qualify for a franchise. However, it mentions that if the franchisor's most recent unaudited financial statements show a net worth of less than $100,000, you have the right to request an escrow arrangement [p.182].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory. However, you are granted a protected territory as specified in your Franchise Agreement (Attachment 1), but this protection can be terminated if development obligations are not met. Additionally, the franchisor retains the right to establish or allow others to establish franchises outside of your designated area after the Multi-Unit Development Agreement expires [p.32, p.34, p.53].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program consisting of six Foundational Training Modules via 1-hour video calls, weekly Pre-Launch Business Start-Up video calls, and four additional days of on-site interactive training. Ongoing support includes materials from their Manual and other beneficial materials, though specific details are not provided in the excerpts. [p.30]
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?
The franchisor is permitted to provide actual records of existing outlets if a prospective franchisee is purchasing an existing outlet. However, the franchisor does not make representations about future financial performance or past financial performance of company-owned or franchised outlets, and it authorizes no such representations by its employees or representatives [p.43].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only those products and services that have been approved by the franchisor in the Manual and any updates. You may not sell any other products or use your franchise for purposes outside of operating a Home Matters Caregiving business as specified [p.37]. For supplies, you may need to buy from suppliers designated by the franchisor, though there may be situations where you can obtain items from any supplier who meets their requirements [p.19].