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Options Franchising Co.

Notes

Population of Standard Territory

Up to 400,000

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Guaranteed senior population in territory

30,000 – 35,000

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Cost of Franchise

$39,000

Given that Options standard territory size can approach 400,000 in population which is covered by the $39,000 franchise fee, most other franchisors charge a premium over and above their standard size territory, which is typically much less than 400,000. Check for additional charges for territories with larger population. Ask for a territory of 350,000-400,000 to be able to properly compare fees.
Royalty fees

5% – 3%

Check at what bracket the royalty fee starts decreasing.
Frequency of royalty debits

Monthly

If bi-weekly, calculate the additional royalty fee you will pay in comparison with monthly debits.
Revenue based on

Paid Invoices

If based on issued but non-paid invoices, calculate additional fee you will be paying on A/Rs and bad debts.
Marketing fees

0.5%

Frequency of Marketing debits

Monthly

If bi-weekly, calculate the additional royalty fee you will pay in comparison with monthly debits.
Do you provide any incentives for new franchises?

Yes

Not all franchisors do.
If yes, what are these incentives?

$1,500/month

To assist you with your start-up, ongoing fees (revenue royalty, marketing royalty, and technology fee) are waived for the first two months from the date of completing the 5-day Initial Training. Alternatively the franchisee may choose to be charged royalties for these first two months and receive $3,000 in cash ($1,500/month for these first two months) from the franchisor.
Technology Fee

$475/month

Check if this fee escalates after year one.
Face-to-Face Training

1 week

Total Initial investment

$57,700 – $88,600

Date business started

1989

Verify that this date is the actual date when this franchisor, in its present form, started the home care business.
Number of corporately-owned outlets

12

A good measure to verify if franchisor truly appreciates the challenges of the franchise owner.