THE FRANCHISOR AND ANY PARENTS, ITS PREDECESSORS
AND AFFILIATES The Franchisor
The Franchisor is Homewatch
International, Inc. For ease of reference, Homewatch International, Inc. will
be referred to as "we," "us," "our," or
"HII" in this Offering-Ch-eularDisclosure Document. We will
refer to the person or entity buying the franchise as "you" or
"your" throughout this Offering GireularDisclosure^Documeni,
unless otherwise noted. If the franchisee is a corporation, partnership or
limited liability company, certain provisions of the Franchise Agreement will
also apply to the owners and will be noted.
HII is a Colorado corporation
that was incorporated on December 28, 1992. We currently conduct business under
our corporate name, and under the service mark and brand "HOMEWATCH
CAREGIVERS " Our principal business address is 7100 E. Belleview Avenue,
Suite 303, Greenwood Village, Colorado 80111. Our agents for service of
process are disclosed in Exhibit A.
Pa�entsr
Predecessors
and Affiliates
Our predecessor, Homewatch
Corporation ("HC"), was incorporated in Colorado on December 15,
1976. On December 31, 1992, HII acquired certain assets of HC including its
rights as a franchisor. HC was merged into HII on July 12, 1997 and HC ceased
to exist after that date. We have no "other p.rjede�eiiSQrfi.PXaffiliates,"
as that term is defined for this Item 1.,
The
Franchises
We offer franchises for the
establishment and operation of a business ("HOMEWATCH
CAREGIVERS Business" or "Business") offering companionship,
comprehensive personal care and
transportation services (_HOME:WAXi^XARE����������������������������������������� private
pay and insured clientsr
Semees^re^wided%y4iOfi^health^ licensed
practical-nurses and - registered-nurses-to-the :agmgv -
disabled^- recovering-,-- rehabi 1 itatingi-eonvalesemg-and
others--(---HOMEWA-T�-H--GAREGJVERS--Se^
apply to-a HOMEWATGHCAREG1VERS Business in the state
-where-your Business will be conducted
(.".Clients"). The Businesses use our service mark
"HOMEWATCH CAREGIVERS" and related service
marks and trademarks ("Marks"), as well as our proprietary business
methods ("Licensed Methods").
HOMEWATCH CAREGIVERS Businesses pr�������������������������������� focused
on the activities of dailyjiying
to a variety of Clients. The services provid&Lillclude
services such as meal preparation, light hQusekeepmgUtrans.p^
reminding and medjcjatipJl_assistance. Exhibit III to the Franchise Agreement is
a detailed list of the services offered by a
HOMEWATCH CAREGIVERS S.emc.es_Qffe.red..by,,.a^Business. The Franchise
Agreement is attached to this Qffcfti^ft GifcularlJjsxLQs.ur_e_Ilo_cument as Exhibit
B.
.We may, but are not required
to, periodically make available optional programs ("Optional
Programs") in which franchiseesyjoju may be eligible to
participate. These programs are sometimes provided in association with the
Marks and Licensed Methods, or may be associated with other trademarks and
service marks owned by us or by third parties. The focus of Optional Programs
is to enable Businesses to provide additional services or products to Clients,
or make available additional referral sources or strategic alliances to
generate new Clients. There may be qualification standards, set by us or a
third party provider, that must be met in order to participate. In order to
participate in some
Optional Programs, you may be
required to sign an Addendum to your Franchise Agreement or a separate
agreement with us or a third party provider. See also Items 5 and 8.
If vou qualify, you may
obtain from us the right to develop multiple HOMEWATCH
CARFJuriy.ERS..to
("Development Agreement"), which is
attached as Exhibit C to this Disclosure Document. The Development
Agreement designates a "Development Area" reserved for your development
of Businesses. The Development Agreement States the number of HOMEWATCH
CAREGIVERS Businesses and the schedule for your development of those
Businesses. A separate Fraqciusfi Agreement will be executed for_each
Business developed under the DevetoprnejijLAgreement. The
&co.pe�and�terjn�pl�any^
depends on the geographic area available for
development, your development plans and our determination, in our
judgment, of vour financial capability and quju^fications to develop
multiple Operations within the Development Area.
We also offer^ritnehises^rantm^ Representative")
witfain.jtAfineo\xepgrjaph
prospective Franchisees and to assist us in providing
additional support to Franchisees in Development Area. We only offer
area franchises and appoint Area Rep resent atiyesjn selected geographic
regions. Area JriL"_j?j.sjg.s are offered OjdyJ>ysep^
prospective Area Representatives who must meet qualification standards
that differ from Qualification standards_for_prj^p�ctke-FjcanchiseesJ
Market for
the Franchise Services and Competition
The target market for the
HOMEWATCH CAREGIVERS Services you will offer will beis the general public,
"particularly clients; in particular, Clients who utilize outside services
to take care of various personal care needs and especially clientsClients
needing outside personal assistance services to continue to live at home ("Clients").
Your Clients will be aged, disabled, rehabilitating, convalescing or recovering
from accidents or injuries. The HOMEWATCH CAREGIVERS
Services are rendered by home-"heakh-aidesr-personal-care-providers,
cert^ed-nurse-assistantsr-fegistercd
nurses-and-lic^nsed practical-nurses: -You will compete with a wide variety of
other businesses and individuals that provide similar services in your market
area. There are numerous enterprises and individuals in all areas of the United States providing some or all of the services you will offer through your HOMEWATCH
CAREGIVERS Business, such as senior daycare centers, convalescent care
providers and assisted living services.
Regulations
You must comply-with-the-fea^ral-Health--InsuFara
follow--state-an4~fedefal~4iealtbH^
Departm ent- of-Veterana Affai rs -mles^if-you- provide-sefvices
to veterans paid- by-th
and-the-federal-and state-laws that-sometimes
regulate-aelient-''s right-to-cancel-serviees-for-a-period-after
entering-imo--a
C0itt>aet--in--their^
mr
area. observe.
...alL.rules....an.d.
regulations that apply tn a HOMEWATCH CAREGIVERS
Business in the state where vour Bju s iness w ij l_becgndu c^gd^
App rox imate 1 y one-half of the states require licenses or otherwise regulate
some aspect of personal or home care businesses. You are responsible for
determining whether licensing or other regulations exist and if so, how you
will comply with them. Wc will provide limited assistance
OFFE RING CIR CU LA RERAN C1I1S EJUS CLQSI�RE.D Q C UMEKT - 2
to you in complying with
regulations, but we strongly recommend that you consult with an attorney
regarding federal, local and state laws, rules and regulations that may affect
the operation of your Business. In particular, we recommend that you check your
state and local laws and regulations regarding bonding, insuring, and training
your personnel who will be assisting Clients in their homes, as well as labor
laws, human resources laws and licensing laws applicable to the provision of
personal or home care services in your state. In_s.Qmejjtates^jndM
Q.f.semc.eS-Rr_Qyidfcd..jyour employees must be bonded,
insured^licensedAJLapjilicable., and have some prior experience. You
should also familiarize yourself with federal, state or local laws of a more
general nature that may affect the operation of your HOMEWATCH CAREGIVERS
Business. It will be your responsibility to comply with any laws affecting your
Business. There may be other state, local or federal regulations specific to
the operation of a HOMEWATCH CAREGIVERS Business in your area.
You may be required to
comply with the federal Health Insurance Portability and
Accountability Act of 1996. as am^^
Clients. You must follow
state and federal health insurance and Medicaid procedures, if
you are Medicaid.certified_J�er^
cancel services for a
period after entering into a contract in their personal residence. You
must
Stay informed about any applicable ..changes^���������������������������������������� determine
whether Jhere are
state and local laws that regulate the operation of a HOMEWATCH
CAREGIVERS Business in your area.
