ITEMI
THE FRANCHISOR AND ANY PARENTS,
PREDECESSORS AND AFFILIATES
In this franchise disclosure
document, "we," "our" or "HOME INSTEAD" means
Home Instead, Inc., the Franchisor. "You" means the person who is
buying the franchise. If you are a corporation, partnership, limited liability
company, or other entity, "you" includes your owners or members. Home
Instead, Inc. is a corporation formed in the state of Nebraska on May 4, 1994.
Our principal place of business is 13330 California Street, Suite 200, Omaha, Nebraska 68154. HOME INSTEAD''S agents for service of process are listed in Exhibit
C.
HOME INSTEAD
franchises the operation of in-home non-medical companionship and domestic care
services for the elderly utilizing our formats, systems, standards and
procedures (the "System") using certain trademarks, domain names,
service marks and other commercial symbols (the "Licensed Marks").
Our affiliate HI Omaha, LLC has operated a Home Instead Senior Care business in
Omaha, Nebraska since 1994 and our affiliate HI Fremont, LLC operated a Home
Instead Senior Care business in Fremont, Nebraska from March 19, 2003 to
October 1, 2005.
HOME INSTEAD is
entering into master franchise/license agreements in selected foreign markets
only. Currently we have master franchise agreements in Australia, Ireland, Japan, Portugal, Spain, Taiwan, United Kingdom, New Zealand Switzerland and Germany and 23 individual franchisees in Canada.. A Home Instead Senior Care franchise business
provides in-home non-medical care for the elderly. Our service is an effective
solution for the elderly who prefer to remain at home where the quality of life
is enhanced without the stress and hardships of interrupted routines and daily
habits. The Home Instead Senior Care System utilizes a care concept composed of
a certain number of integral parts, all of which are absolutely necessary for a
successful operation, and are fully described in our confidential Operations
Manual (as defined below). A Home Instead Senior Care franchisee can expect to
compete with other national and local businesses and sole proprietors
performing similar services.
A Home Instead Senior Care
franchisee employs individuals who are trained to provide professional and
reliable services to customers. The services offered to customers are
specifically designated by HOME INSTEAD.
HOME INSTEAD
originally incorporated under the laws of the State of Nebraska on May 4, 1994,
under the name of Home Instead, Inc. and began selling franchises under the
name "Home Instead Senior Care" in 1995. Throughout its history, HOME
INSTEAD has offered franchises for the business which is subject to this
offering and has not offered franchises in any other line of business.
The federal Fair Labor
Standards Act contains an exemption from minimum wage and overtime obligations
for employees providing companionship services to the aged or infirm and
properly categorized as exempt under its "companionship" exemption
[29 U.S.C. Sec. 213(a)(15)]. Many Home Instead franchise owners utilize this
exemption. Many states have analogous state law exemptions with similar
requirements and restrictions. You should note that the application of the
federal exemption and any state exemption is based upon each individual
CAREGiver''s circumstance and job duties performed, and categorization of those
employees as exempt or non-exempt should be done on a case-by-case basis. Some
Home Instead franchise owners have faced audits from their local office of the
federal Department of Labor and/or from their own state Department of Labor.
Some of those offices have informed franchise owners that it is the position of
the Department that either the federal and/or their particular state exemption
does not apply to CAREGivers working for their business, or that the exemption
only applies to CAREGivers working in certain settings. Some Home Instead
franchise owners have faced claims from current or former CAREGivers that the
exemptions were applied incorrectly. A Department of Labor determination that
an exemption was applied incorrectly, or an employee claim or lawsuit on this
basis, can potentially result in employer/franchisee liability for back pay and
unpaid overtime, including interest, penalties and attorney''s fees. It is every
franchise owner''s responsibility to understand the requirements and details of
any applicable exemptions to determine whether the available exemption in the
franchise owner''s state and jurisdiction can lawfully be applied to their
employees and whether or not to use the exemptions. You must review these and
other issues with your attorney to determine the current state of the law on
them in your state and jurisdiction.
The
Compensation laws and regulations in specific states may vary from the minimum
wage and overtime requirements promulgated by the federal Fair Labor Standards
Act. If state law where you operate your franchise business varies from the
minimum wage and overtime requirements of the federal Fair Labor Standards Act,
then state law will control and will override federal law. For example, state
minimum wage obligations can require employers to compensate employees for
activities like travel time between jobs during the workday, even though such
activities are generally not compensable under the federal companionship
exemption from minimum wage. You must review minimum wage and overtime
compensation requirements of the state or states where you intend to operate a
Home Instead business. You and your attorney must determine whether your
employees will be subject to overtime and minimum compensation requirements as
may be required by your state and local laws. You are responsible for this
determination.
There may be
state laws which regulate this industry. You must check with your state
Department of Health and Human Services and any other department that may
regulate this industry. Specific state statutes in your area may require
licensing of your business. A Home Instead Senior Care franchise does not
provide medical services in the home; however, state statutes may have a broad
definition of "medical services" that includes personal care
services. You want to make certain that the services your CAREGivers provide
arc not determined by your state authorities to be providing medical care or
medical assistance which may require licensing.
HOME
INSTEAD has no predecessors.
