Investment

What to Expect with Our ActivAge Franchise.
Type of ExpenditureAmount
Initial Franchise Fee
$49,500
Site Selection, Training, and Onboarding Fee
$7,500 – $15,000
Construction and Leasehold Improvements
$341,250 – $465,000
Lease Deposits – Three Months
$23,077 – $38,462
Furniture, Fixtures and Equipment
$69,500 – $110,000
Signage
$8,250 – $20,750
Computer, Software, and Point of Sales System
$6,290 – $12,605
Grand Opening Marketing
$25,000
Utility Deposits
$650 – $1,300
Insurance Deposits – Three Months
$1,375 – $8,250
Travel for Initial Training
$1,000 – $3,100
Professional Fees
$35,000 – $45,000
Licenses and Permits
$500 – $2,500
Printing, Stationery and Office Supplies
$1,350 – $2,650
Additional Funds – Three Months
$31,435 – $51,491
Total Estimate
$601,677 – $850,608

Explanatory Notes For a Franchise Agreement:

  • Note 1: Initial Franchise Fee – The Initial Franchise Fee for a single franchise under a Franchise Agreement is $49,500.
  • Note 2: Site Selection, Training, and Onboarding Fee – The Site Selection, Training, and Onboarding Fee for a single franchise under a Franchise Agreement is $15,000. Under the two and three Center pack, the Site Selection, Training, and Onboarding Fee is $7,500.
  • Note 3: Construction and Leasehold Improvements – This estimate is for the cost of construction, construction management, and build-out of a Center but does not including furniture, fixtures, and equipment. Our estimates are based on the assumption that the typical square footage of a Center ranges from 5,000 to 8,000 square feet. These estimates are based on the assumption that the location that you select for your Center is a site delivered to you at a pre-existing stage where existing interior improvements consist of installed and functional heating/cooling with delivery systems, essential lighting, electrical switches and outlets, lavatories, a finished ceiling, walls prepared for painting, and a concrete slab floor. This estimate does not include architectural fees or other fees charged by licensed professionals other than 12 ActivAge FDD June 27, 2023 general contractors and licensed tradesmen and does not include any special heating systems, cooling systems, or ductwork required by a Center. The costs for developing your Center may be higher or lower than the estimates provided.
  • Note 4: Lease Deposits – Three Months – You will operate your Center from a Center Location that we approve and complies with state and local laws. If you do not already own or lease a suitable location, you will lease a location we approve that meets our standards. This estimate is based on the assumption that you will be leasing your Center Location and is for the estimated amount of the initial lease deposit that you will pay to the landlord at the time you sign your lease before opening your Center. The estimate is based on the assumption that your lease deposit will be equal to three months of rent payments. The typical square footage for a Center ranges from 5,000 to 8,000 square feet. You will directly negotiate the amount of your lease deposit with your landlord and it may vary significantly based on a number of factors that include location and your own negotiations. This estimate does not include the purchase of real property if you elect to purchase the real property of your Center Location.
  • Note 5: Furniture, Fixtures and Equipment – You will purchase certain types of furniture, fixtures and equipment for your Center. You will purchase desk, chairs, and computer equipment from us, our approved manufacturers, or suppliers subject to our specifications. The costs for furniture, fixtures and equipment may differ depending on the material quality and on other factors. The size of your Center will influence and may increase the cost of furniture and fixtures. The listed costs do not include any transportation or set- up costs. Third party financing may be available for qualified candidates for some of the leasehold improvement costs; however, such financing comes with associated costs and fees which may cause the cost to exceed the estimates of this chart.
  • Note 6: Signage – You will purchase interior and exterior signs and displays that we designate subject to our design and construction specifications and approval. This estimate is for the cost to produce wall signage to be mounted to the outside of the building and all interior signage. This estimate includes other elements of brand identification within the Center including wall graphics.
  • Note 7: Computer, Software, and Point of Sales System – You will purchase, license and use the point of sale systems, ordering systems, and applications that we designate. Information about the point of sale and computer systems are disclosed in Item 11 of this Disclosure Document.
  • Note 8: Grand Opening Marketing Expense – You will spend the minimum amount we designate of $25,000 prior to the opening your Center to promote your grand opening. You will submit your grand opening marketing plan to us for our pre-approval.
  • Note 9: Utility Deposits – You will pay upfront deposits to each applicable utility company to secure the appropriate utilities required for the operation of your Center, including, without limitation, gas, electric, water, sewer, and Internet access utilities.
  • Note 10: Insurance Deposits – Three Months – You will maintain certain insurance coverage. Your actual payments for insurance and the timing of those payments will be determined based on your agreement with your insurance company and agent. This estimate is for the cost of an initial deposit to obtain the minimum required insurance and we estimate this deposit to be equal to the amount of three months of monthly insurance premium payments. We recommend that you consult with your insurance agent before signing a Franchise Agreement.
  • Note 11: Travel for Initial Training – You will complete our pre-opening initial training program before opening your Center. We do not charge a fee for our pre-opening initial training program. This estimate is for estimated travel and lodging expenses that you will incur to attend our pre-opening initial training program.
  • Note 12: Professional Fees – This estimate is for costs associated with the engagement of professionals such as attorneys, accountants, and architects for advisories consistent with the start-up of a Center. You will hire an architect to develop plans that meet our standards and specifications and comply with applicable laws, rules, and regulations for the development and operation of your Center. We recommend that you seek the assistance of professional advisors when evaluating this franchise opportunity, this Disclosure Document, the Franchise Agreement, and the Multi-Unit Development Agreement as applicable. It is also advisable to consult these professionals to review any lease and other contracts that you enter into as part of the development and operation of your Center.
  • Note 13: Licenses and Permits – You will apply for, obtain, and maintain all required permits and licenses necessary to operate a Center. The licenses will vary depending on local, municipal, county, and state regulations. All licensing fees are paid directly to the governmental authorities when incurred and are due prior to opening your Center. This estimate does not include the cost of specialized licenses such as liquor licenses that involve a specialized application process and involve costs that vary significantly depending on state and location.
  • Note 14: Printing, Stationery and Office Supplies – You will purchase business cards, office supplies, items bearing marks, uniforms, and other supplies.
  • Note 15: Additional Funds – This is an estimate of the minimum recommended levels of additional funds that may be required to cover operating expenses such as employee salaries, inventory, rent, and utilities only for the initial three month period following the opening of your Center. This estimate does not include compensation to you or your owners and does not include interest, finance charges, or payments that may be incurred by you if you finance the development of your Center. We have relied on the experiences of our affiliate in developing and operating a Center to make this estimate. This is only an estimate for your initial three months of operations and more working capital and additional funds may be required depending on the sales and performance of your Center. Before signing a Franchise Agreement, you should consult with your accountant and advisors to budget and determine the amount of additional funds that you should reserve and set aside to support and capitalize the long-term operations of your Center.
  • Note 16: About Your Estimated Initial Investment – This is an estimate of the initial start-up expenses for a Center. We have relied on the experiences of our affiliate in developing and operating a Center to make this estimate. These are only estimates and your costs may vary. Factors that may influence your costs include (i) the size of your Center, (ii) local geographic market and economic conditions including rent, labor, and construction rates, (iii) local licensing costs, (iv) competition, (v) the facilities and existing build- out of the Center Location that you select, (vi) landlord funded tenant improvements and allowances, (vii) the capabilities of your management team, and (viii) the level of sales achieved by your Center. These estimates do not include interest and financing charges that you may incur and do not include management-level compensation payable to you or your owners. You should carefully review these estimates with your business, accounting, and legal advisors before making any decision to sign a Franchise Agreement. These estimates are for one Center only. The estimated amount will be required for each Center that you develop if you sign a Multi-Unit Development Agreement.
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