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How Much Is The CarePatrol Franchise Cost?
Senior needs’ services is a growing industry in the US. In fact, the US Census Bureau tells us that about 10,000 Americans cross the 65-year-old threshold every day. No wonder many entrepreneurs are looking to franchise CarePatrol. Starting the business now helps them position themselves for 2030 when all boomers are 65 and above.
In this article, we’ll discuss the CarePatrol franchise cost. We’ll also tackle the duties that come with opening your own senior care facility.
Franchise Description
Before we discuss the CarePatrol franchise cost, let’s learn a bit more about the business. CarePatrol began in 1993 but didn’t start franchising until 2009. The franchisor is CarePatrol Franchise Systems, LLC, and it currently has 140 units. The business offers senior living placement. Added to that, they provide referral and consulting services for families that need senior living services, be it an assisted living community, independent living community, nursing home, memory care, or other similar facilities.
Training Overview
Aside from CarePatrol franchise cost, franchise owners must also be ready to invest time and energy during training. The course consists of four phases. Initially, the first phase starts once the business owner signs the franchise agreement. The head office facilitates the five-day training at an approved area via e-learning or web portal meeting.
Once the franchise owner completes phase one, the second phase starts. This part takes about two months to finish in the franchisee’s approved site. It can also likely be held in the corporate head office or any other area identified by the franchisor.
The third phase takes about eight days, while the last and fourth phase takes up to a month. Same with the first two phases of the training, the third and fourth phases are held at a venue agreed upon by both parties.
Aside from the initial training program, the head office may also require franchise owners to attend additional or refresher courses. In addition to that, the franchise owner may also request additional training from the head office as they see fit. Extra training will incur extra fees from the franchise owner.
Obligations and Restrictions
Aside from settling the CarePatrol franchise cost, the franchise owner must also comply with the duties and responsibilities in the agreement. The agreement requires the franchise owners to identify an individual who will act as the managing owner. The manager must devote their full-time effort to growing the business. Should there be a change in the designated managing owner, they must complete the training program as required by the head office.
Franchise owners can operate within an exclusive area. The head office defines this area based on a number of factors, which include the total population, the number of senior housing sites, and the number of beds within the site. Typically, an exclusive area will have not less than 1,200 beds. The head office will not permit a new franchise within the exclusive area of an existing franchise.
The business also must only sell services and products approved by the head office. The business should only operate in the exclusive area named in the agreement. The franchise’s marketing efforts must also focus on the exclusive area covered.
The initial franchise period is five years. However, the franchise owner can apply for two successor renewal terms, given that they’re in good standing.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Onboarding Fee | $7,500 | $7,500 |
| Travel Expenses for Training | $2,500 | $5,000 |
| Real Estate & Related Expenses | N/A | |
| Office Equipment | $1,100 | $2,100 |
| Computer Systems | $2,500 | $3,500 |
| Signs | $0 | $500 |
| Certified Senior Advisor Certification | $1,495 | $1,795 |
| Professional Fees & Business Licenses | $1,500 | $2,500 |
| Vehicle – Deposit & 3 Lease Payments | $0 | $5,000 |
| Insurance (3-6 months) | $625 | $1,750 |
| Additional Funds (3 months) | $11,000 | $20,000 |
| ESTIMATED TOTAL | $77,720 | $99,145 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | $600 to $3,000 per month. |
| National Lead Fee | 30% of gross sales received from national leads that are converted into placements. |
| Partner Facility Placement Fee | 3% of gross sales received from partner facility placement fees. |
| Local Marketing Spend | 1% of gross sales. |
| National Advertising Fee | $300 per month. |
| Technology Fee | $449 per month. |
| G-Suite Fee | $13.50 per month, per G-Suite account. |
| Accounting Software Fee | Varies. |
| Certified Senior Advisor Fees | $1,495- $1,795 initial fee; $175 annual renewal fee. |
| National Trade Organization Membership Fee | $200 – $500 annually. |
| Insurance | Cost of premium plus the franchisor’s related expenses. |
| New Managing Owner Training Fee | $2,000 per person. |
| Marketer Training Fee | $1,000 per person. |
| Supplemental Training Fee & Refresher Training Fee | $500 per day (plus expenses). |
| Annual Conference Registration Fee | Up to $750 per conference for two attendees; $350 per attendee, thereafter. |
| Annual Conference Absentee Fee | $1,500 |
| Regional Meeting Registration Fee | Up to $250 per attendee. |
| Regional Meeting Absentee Fee | $500 |
| Marketing Materials | Varies. |
| Transfer Fee | $15,000 at the time of transfer if the transfer involves 50% or more change of ownership. If the transfer involves less than a 50% change of ownership, the transfer fee will be calculated based upon the percentage of ownership change. If the entire business is transferred to an unrelated third-party, the transferee or the franchisee must also pay the onboarding fee. |
| Renewal Fee | $7,500 |
| Third-Party Broker Listing Fee | Varies by broker. |
| Examination/Audit of the Franchisee’s Records and Under Reporting Penalty | $300 per day per person plus: expenses, full amount of any underpayment, $5,000 penalty, and interest on any underpayment. |
| Client and Location Infraction Fee | Two times (2x) full placement fee realized. |
| Client Resolution Fee | Greater of $500 or $50/hour. |
| Interest | 18% or the maximum allowed by law. |
| Late Reporting Fee | Up to $150 per week for each individual payment past due. |
| Drivers’ Safety Course | Varies. |
Did You Know?
Here are a few fun facts you might want to know about CarePatrol:
- CarePatrol offers various options for their aging clients, including assisted living, independent living, memory care, and nursing homes.
- The business puts a premium on seniors’ dignity. CarePatrol has Certified Senior Advisors who assess the patient’s physical and emotional needs. They also consider social and financial issues. Based on the assessment, the adviser will recommend arrangements that will best fit the senior’s unique state.
- CarePatrol takes pride in closely monitoring every client long after move-in day. That said, the senior should expect regular check-ins designed to ensure that their needs are met. This also allows the facility to adjust arrangements as the senior’s health changes.
- The franchise boasts of being the largest and most trusted senior placement organization nationwide. In fact, they have more than 150 Certified Senior Advisors throughout the country.
- CarePatrol offers a three-step process to give seniors’ loved ones the peace of mind they deserve. First, they will assess the senior’s needs, as discussed above. Secondly, the advisor will present the top three matches. They’ll invite the clients to tour the communities. Last but not least, they’ll provide expert advice as clients make their final decision.
If caring for the elderly is your passion, then a CarePatrol franchise will surely be a good fit. Besides being an in-demand service today, the business will also allow you to help improve seniors’ quality of life.
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