Senior Care Authority
Senior Care Authority helps families find suitable living arrangements for seniors. Known for senior placement consulting services, it operates under the Senior Care Authority brand in multiple marketing areas.
Senior Care Authority franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a Senior Care Authority ® business in a single marketing area is between $85,255 and $107,725. This includes between $67,160 and $67,580 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
This isn't specified in the excerpts. The provided FDD excerpts discuss when and how the initial franchise fees are recognized or deferred, but they do not provide information on the amount of the initial franchise fee.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 8% of Gross Sales, with a minimum monthly royalty fee required even if it's less than 8% of Gross Sales. There is no specified amount for an advertising fee; however, you must obtain approval before conducting any Internet advertising, and the company expenses its own advertising costs when incurred [p.128].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement provides a term of ten years [p.129]. After this initial term expires, you have the option to acquire a successor franchise for an unlimited number of additional five-year terms, subject to the franchisor's conditions [p.65].
Can I sell or transfer my franchise, and what does that require?
You cannot sell products or services within another franchisee's Territory without their consent. For transferring ownership of the franchise, good cause must be provided to the franchisor, who has a right of first refusal. [p.37, p.160] This isn't specified in the excerpts for selling or transferring the franchise directly.
On what grounds can the franchisor terminate the agreement?
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 30 days. This is detailed in [p.160] and [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide details on the net worth or liquid capital requirements needed to qualify as a franchisee. However, it mentions that if the franchisor's most recent financial statements show a net worth of less than $100,000.00, they may arrange for escrow of your initial investment until obligations are fulfilled [p.6].
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory consisting of one or more Marketing Areas, each covering between 2,500 and 4,000 beds licensed for assisted living or memory care. However, the franchisee does not have the right of first refusal to acquire additional franchises within their territory, nor can they operate more than one Placement Agency within the Territory without prior written approval. [p.31, p.62]
What training and ongoing support does the franchisor provide?
The franchisor provides a structured Training Program that includes both classroom-style video lectures/web-based presentations and one-on-one coaching sessions on various operational topics. This training is delivered by corporate personnel and seasoned franchisees, with Lorrie overseeing new franchisees' training and business setup. The program may be adjusted based on the specific circumstances of each franchisee, such as a resale purchase [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?
Yes, the franchisor shares actual financial performance information from their franchise-owned Placement Agencies. This information is based on gross sales reported by franchisees and has not been audited, but the franchisor believes it to be accurate [p.42, p.45]. However, no representations are made about a franchisee's future or past financial performance unless specific conditions are met, such as providing actual records of an existing outlet for sale [p.45].
What am I restricted to selling, and where must I buy supplies?
You are required to offer for sale only services and products that have been approved and specified by the franchisor in the Operations Manual [p.37]. You may not sell any unauthorized services or products, and you must use only items designated as required by the franchisor, which you may have to purchase from them or a limited group of suppliers they designate [p.3].