Looking to Start a Home Care Business?
Understand the Difference Between the Franchise Agreement and the Franchise Disclosure Document.
Once you’ve decided to start a home care business, you’ll need to decide if you’re going to go it alone or purchase a franchise. The franchise model offers you all the advantages of a turnkey business solution. If you opt for the franchising path, your franchisor will provide you with everything from training to procedural documentation.
When you buy into a franchise group, you’re part of a unified network of business owners where each franchisee adheres to the same guidelines to maintain objectives across the brand. When each location observes the same operational standards, it helps boost the brand as a whole. Franchisees are independent but unified. Additionally, the franchisor wants to ensure a seamless experience from location to location.
Legal Documents Needed to Start a Home Care Business
Branding consistency is just one element that defines a franchise. If you decide to move forward, everything you need to know about the contractual commitments will be outlined in the Franchise Agreement, legally binding contract that lays out what you can expect from the franchisor while detailing the terms and conditions of your obligations.
However, before you even get to this stage in the process, the first document to review is the Franchise Disclosure Document (FDD). As the name implies, it is an open book on everything about the franchisor.
Unlike a Franchise Agreement that outlines the responsibilities of both parties, the FDD provides the details you’ll want to know about the history of the company, including any past litigation and its resolution. This document summarizes the franchise fees to set your expectations regarding both startup and monthly recurring costs. The company’s financial statements are also included.
Request and receipt of the FDD do not constitute an obligation; it is a part of the fact-finding mission when you’re thinking about starting a home care business via a franchise.
Types of Franchise Agreements
Despite the consistency of the franchise model, there are different ownership types. Once you know you want to start a home care business, there are four kinds of franchise agreements to satisfy your goals:
- Single Unit
Considered the most typical agreement for first-time franchisees, this option permits the ownership and operation of a single franchise location.
For franchisees who want to expand within their own territory or beyond it, this franchise agreement grants the authorization to operate more than one franchise unit.
- Area Development
In addition to owning and operating multiple units, this contract permits the franchisee to have exclusive development rights in a particular territory, to the exclusion of any other prospective franchisees.
- Master Franchise Agreement
At this level, the franchisee acts as more of a franchisor as they are granted permission to sell franchises contained to their territory/geographic area to other franchisees.
Should You Hire a Franchise Attorney?
Engaging a professional who is educated in the nuances of Franchise Agreements and Franchise Disclosure Documents will give you the confidence you should have when you start a home care business.
A franchise attorney can help every step of the way, including:
- Evaluation of the franchisor, the opportunity, and the FDD
- Review of the lease for a potential business location for a franchise
- The potential negotiation of a franchise agreement prior to signing it
- Guidance for franchisee associations and help with collective bargaining
- Help and guidance in terminating a franchise agreement
- Arbitration, litigation, and mediation assistance for franchisees
If contracts are involved, you can’t go wrong with having your own representation. When you start a home care business with a comprehensive understanding of your expectations and obligations, nothing will stop you from realizing your dream.
Start A Home Care Business with Visiting Angels
If you have been considering starting a home care business, now is a great time to investigate opportunities with Visiting Angels®. Since 1998, we have been providing superior home care services for families throughout the United States. Our business has been built on a foundation of trust and the belief that quality care at home makes all the difference in our client’s lives. At Visiting Angels, we care about caring.
We are proud to have a wide range of home care franchise opportunities available across the United States. You can begin the process of learning how to start a home care business by contacting us by phone at 800-365-4189 or by requesting information online.
We look forward to meeting you, understanding your goals for starting a home care business, and discovering if together we can make your dreams of being a business owner become a reality.