Risk Score
Pending analysis
Investment Range
$91,840 - $138,770
Franchise Fee
$20,000
Min Cash Required
$35,000
Total US Locations
26
Business Summary
1Heart Caregiver Services operates a non-medical homecare agency that specializes in providing caregiving services to the elderly and other adults who require assistance but do not need nursing home care. The business also offers staffing services for non-medical caregivers and CNA services to senior living facilities, residential care facilities for the elderly (RCFE), and individuals with disabilities. 1Heart Caregiver Services generates additional revenue through referral income from senior living facilities and other home healthcare agencies, and by collecting training fees through its 1Heart Caregiver University. The services are delivered by experienced caregivers trained to address the individual needs of clients and their families.
Corporate History
1HCS Franchising LLC, which operates as 1Heart Caregiver Services, was organized in California on February 7, 2014. The company changed its name from 1Heart Caregiver Services LLC on March 5, 2023. An affiliated company, Caregiver Services & Homecare, Inc., has been operating a similar homecare business since September 30, 2008, and its predecessor, California Medical Resources, Inc., was incorporated in 2003. Another affiliate, Beacon Care Solutions, Inc., began operating a homecare business in 2020. 1Heart Caregiver Services started offering franchises in September 2014.
Financial Overview
Investment Range
$91,840 - $138,770
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$47,500
Minimum Cash Required
$35,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$1,690
Equipment Costs (High)
$7,300
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
1Heart Caregiver Services ended 2023 with a net loss of $108,194, resulting in an accumulated member's deficit of $252,549. This is a change from 2022, which saw a net income. The company also had negative cash flows from operating activities in 2023. Additionally, 1Heart Caregiver Services has an Economic Injury Disaster (EID) loan from the SBA with a balance of $133,846 as of December 31, 2023, incurring interest at 3.75% annually.
Financing Details
1Heart Caregiver Services does not offer any direct or indirect financing options to its franchisees. Franchisees are also informed that 1Heart Caregiver Services will not guarantee their leases or any other financial obligations.
Performance Metrics
Total US Locations
26
Franchised Units
23
Corporate Units
3
Avg Square Footage
700
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
1Heart Caregiver Services is currently involved in one class-action lawsuit. This case was filed in February 2023 by a former employee of a 1Heart Caregiver Services franchisee. The lawsuit alleges various violations of California labor laws, including failing to pay overtime and minimum wages, not providing required meal and rest periods, waiting time penalties, wage statement violations, failure to timely pay wages, and unfair competition. The plaintiff is seeking damages, liquidated damages, penalties, injunctions, restitution, interest, attorney's fees, and court costs. 1Heart Caregiver Services has formally responded to the complaint and is vigorously defending against these claims.
Bankruptcy History
1Heart Caregiver Services has no reportable bankruptcy history for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, 1Heart Caregiver Services franchisees must meet several conditions. They need to have fully complied with all provisions of the existing Franchise Agreement and any other agreements with the franchisor throughout its term. Franchisees must also have the right to continue occupying the approved location or an approved substitute location for the new term, and have made any necessary capital expenditures to maintain uniformity with the System's standards. All monetary obligations owed to 1Heart Caregiver Services must be satisfied, and the franchisee must not be in default of any agreement with the franchisor. Additionally, franchisees must provide written notice of their intent to renew between nine and twelve months before the current term ends, comply with current training requirements, and sign the franchisor's then-current form of Franchise Agreement, which may have different terms and conditions. Finally, franchisees must sign a general release of any claims against 1Heart Caregiver Services, its affiliates, officers, and agents.
Training & Support Program
Franchisor Assistance
1Heart Caregiver Services provides comprehensive assistance to its franchisees, starting before the business opens. The franchisor helps with site selection by designating an exclusive territory, offering general guidelines, and approving the chosen location. It also furnishes specifications for improving and equipping the approved location and conducts an initial training program for the designated manager and up to two assistants. After opening, 1Heart Caregiver Services offers periodic general guidance through various channels like phone, email, and newsletters, covering operational methods, accounting procedures, authorized services, and marketing strategies. During the first 180 days of operation, 1Heart Caregiver Services conducts at least one on-site visit for review and assistance, along with ongoing training and webinar conferences. Additional on-site assistance can be requested for an extra fee. The franchisor also manages a Brand Fund for advertising and marketing programs, supported by franchisee contributions, and approves local advertising materials. Furthermore, 1Heart Caregiver Services specifies required computer hardware and software, including the WellSky Personal Care scheduling software, and maintains an Internet website, potentially with intranet access for franchisees.
Initial Training Hours
44
Training Location
Tarzana Head Office, CA
Ongoing Support
After opening, 1Heart Caregiver Services offers ongoing support through various channels. It provides periodic advice and general guidance via telephone, e-mail, and newsletters on operational methods, accounting, authorized services, and marketing strategies. During the first 180 days of operation, 1Heart Caregiver Services conducts at least one on-site review and provides assistance, and also holds ongoing training and webinar conferences, which are mandatory for franchisees. Additional on-site assistance can be requested for a daily fee plus expenses. The franchisor administers a Brand Fund to which franchisees contribute, using it for advertising, marketing, and public relations programs. Franchisees also receive an online copy of the Confidential Operations Manual, which is periodically updated. 1Heart Caregiver Services also mandates specific computer hardware and software, including the WellSky Personal Care scheduling software, and provides e-mail accounts.
Franchise Requirements
Ideal Candidate Profile
1Heart Caregiver Services seeks franchisees who are committed to actively supervising the business. The owner or a designated manager must dedicate at least 35 hours per week to day-to-day operations and be accountable for business growth, achieving gross revenue targets, and expanding the 1Heart brand through potential referral sources. For business entities, the designated manager may be required to own at least 15% of the franchise. Franchisees are expected to build an office staff to handle human resources, staffing, billing, and payroll, as well as a front-line field manager for sales, field marketing, and case management. Depending on the scope of business activity, 1Heart Caregiver Services may also require the hiring of a Client Care Manager and/or a Staffing Coordinator.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
1Heart Caregiver Services defines its franchise territories as exclusive areas based on specific zip codes, designed to cover a population base of 350,000 to 400,000 people. The boundaries of these territories are determined by considering factors such as population demographics, median population age, the number of senior living facilities and hospitals, market potential, proximity to competitors, other 1Heart Caregiver Services franchisees, and natural or political boundaries. The franchisor utilizes demographic reports from data.census.gov to establish the population size for each territory.
Staffing Notes
Each 1Heart Caregiver Services franchise must always be under the full-time, day-to-day supervision of a designated manager, who is responsible for business growth and achieving revenue targets. The office must be staffed from 9:00 a.m. to 5:00 p.m., Monday through Friday, with assigned office personnel handling human resources, staffing, billing, and payroll. A front-line field manager is also required for sales, field marketing, and case management. Additionally, depending on the designated manager's involvement and business activity, 1Heart Caregiver Services may require the franchisee to hire a Client Care Manager for client assessments and outreach, and/or a Staffing Coordinator for caregiver recruitment, scheduling, and training. Franchisees have sole responsibility for employee selection, work schedules, discipline, and benefits, though 1Heart Caregiver Services may suggest qualifications and training.