Notes: 1.
HOME INSTEAD
does not finance any of this fee.
If you do not own adequate
office space, you must lease adequate office space. Typical locations are in
office park settings. A typical Home Instead Senior Care office includes
400-600 square feet. Rent is estimated to be $8,400 to $24,000 annually depending
on size, condition and location of leased premises.
This amount may be necessary
to purchase a 13 inch TV/DVD combo, facsimile machine, computer hardware
consisting of either a laptop or desktop computer, software, office furniture,
decorations, fixtures and incidental supplies.
This amount includes security
deposits, utilities, business license, incorporation or applicable legal fees
and an insurance deposit. Required insurance policies include comprehensive
general liability, including automobile liability, third party fidelity bond
coverage, worker''s compensation and any other insurance required by statute or
state law. These policies must name HOME INSTEAD as an additional insured and
you must provide proof of having secured this insurance before the commencement
of the Home Instead Senior Care business. The estimated cost for all insurance
during the first year of operation is $12,000 to $15,000, which includes the
cost of workers compensation. Insurance costs vary from state to state.
Workers'' Compensation rates are based on a
percentage of estimated first
year payroll. Many states will charge between $3.00 to $12.00 per $100 in
payroll. A
few states
are higher, such as California.
Exhibit E of this Franchise
Disclosure Document details a list of items included with the franchise fee.
You will, however, need to obtain an inventory of basic office supplies.
6. This estimates your initial
start-up expenses. These expenses include payroll costs and may not include an
owner''s salary. These figures are estimates and HOME INSTEAD cannot guarantee
that you will not have additional expenses starting the business. Your costs
will depend on how much you follow HOME INSTEAD''S methods and procedures, your
management skills, experience and business acumen, local economic conditions,
the local market for our service, the prevailing wage rate, competition and the
sales level reached during the initial period.
This total estimated initial
investment has been based on HOME INSTEAD''S experience to date. The range has
been provided because expenses may vary based on whether or not you need to
lease office space. The total estimated initial investment is an estimate.
There may be exceptions in your area that could increase the initial investment
other than as we have estimated. This will depend on numerous circumstances
including, without limitation, market conditions, fluctuations in cost of
equipment, and your selection of products, services and vendors. None of these
expenses are likely to be refunded.
TO OUR KNOWLEDGE, THERE ARE NO OTHER DIRECT OR
INDIRECT PAYMENTS IN CONNECTION WITH THE PURCHASE OF THE FRANCHISE.
We have relied on our
experience in operating a HOME INSTEAD SENIOR CARE� business office in Omaha, Nebraska and the experience of our franchisees to compile these estimates. You
should review these figures carefully with a business advisor before deciding
to acquire the franchise. We do not offer financing directly or indirectly for
any part of the initial investment. The availability in terms of financing
depends on many factors, including the availability of financing generally,
your creditworthiness and collateral, and lending policies of financial
institutions from which you request a loan.
