American Family Care Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$144,500 - $1,778,851
Franchise Fee
$45,000
Total US Locations
280
Business Summary
AFC/American Family Care offers a franchise opportunity to establish and manage urgent and accessible primary care centers. These centers provide various levels of patient care services through independent physicians and professionally licensed persons or entities. Services include treatment for minor injuries, infections, workers' compensation cases, sports physicals, travel medicine, colds, and flu. Each AFC/American Family Care center is equipped with multiple exam rooms, X-Ray equipment, an on-site laboratory, and, where legally permissible, a pharmacy dispensing common urgent care medicines.
Corporate History
AFC Franchising, LLC (AFCF) was formed in Alabama on March 19, 2013. The company acquired the "Doctors Express" franchise system on April 15, 2013, and began offering "Doctors Express" urgent care franchises in May 2013. By October 2013, they offered franchises under the name "AFC/Doctors Express." In 2015, the name of the franchised businesses was changed to "American Family Care." AFCF's sole business is to offer and sell franchises and provide support to its franchisees. AFCF's parent company, American Family Care, LLC, established its first urgent care clinic in Hoover, Alabama, in 1982 and currently operates 82 clinics. AFCF holds the right to use and license the "American Family Care" and "AFC and Design" marks from its Parent company.
Financial Overview
Investment Range
$144,500 - $1,778,851
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$782,274
Equipment Costs (High)
$1,046,351
Working Capital
$400,000
Audited Financials
Yes
Offers Financing
No
Financial Health Notes
The AFC Franchising, LLC disclosure document states that its financial statements for the fiscal years ending November 30, 2023, 2022, and 2021 are audited. However, the financial statements for the most recently ended quarter are unaudited, and the document explicitly states that no certified public accountant has audited these quarterly figures or expressed an opinion on their content or form. The actual financial statements (Exhibit H) were not provided in the document text, so specific details regarding AFC Franchising, LLC's working capital, cash flow, or other detailed financial health indicators cannot be analyzed. Therefore, potential franchisees should review the full audited financial statements when available to assess the company's financial condition.
Financing Details
AFC Franchising, LLC does not offer any direct or indirect financing to its franchisees. This means that AFC Franchising, LLC will not provide loans or payment plans for the initial franchise fee, site acquisition, construction, remodeling, fixtures, initial inventory, or ongoing supplies. Additionally, AFC Franchising, LLC does not guarantee any notes, leases, or other financial obligations that a franchisee might incur from third-party lenders.
Performance Metrics
Total US Locations
280
Franchised Units
280
Corporate Units
0
Avg Square Footage
3,125
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
12
Litigation Summary
AFC Franchising, LLC has a legal history involving 12 disclosed cases, with 5 currently pending and 7 previously resolved. The pending actions include disputes filed in 2023 by Groves Enterprises, Inc. concerning a Master Developer Agreement and alleged wrongful termination, a case by American Expert Doctors, Inc. alleging unfair competition and interference, and a suit filed by AFC Franchising, LLC in April 2023 against Trovato Medical Group, Inc. and Parmjit M. Singh, MD, regarding non-compete clauses and trademark use. Additionally, there's a case from March 2020 by Danilo Purugganan involving breach of contract and other claims, which was appealed in 2022 and is awaiting trial in 2024, and a case from April 2019 by Lavender Health Care, LLC which went to trial in November 2023 with post-trial briefs due in early 2024. Prior resolved actions include several lawsuits filed by AFC Franchising, LLC against former franchisees for breach of contract, trademark infringement, and unpaid royalties, all resulting in judgments or settlements in favor of AFC Franchising, LLC between 2017 and 2020. Notably, AFC Franchising, LLC's parent company also settled a qui tam action with the U.S. government in 2014 for $1,200,000 regarding alleged Medicare mis-billing, with remaining claims settled in 2017.
Bankruptcy History
AFC Franchising, LLC has no bankruptcy history to disclose in this FDD. No bankruptcy information for the franchisor or its key personnel is required to be reported in this Item.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their AFC Franchising, LLC franchise, franchisees must provide written notice of their intent to renew between 180 and 270 days before the current term expires. They must be in substantial compliance with all terms and conditions of their franchise agreement and other agreements, and satisfy all monetary obligations to AFC Franchising, LLC. Franchisees are also required to comply with current training and qualification requirements, maintain or secure new premises that AFC Franchising, LLC approves, and sign AFC Franchising, LLC's then-current franchise agreement, which may have materially different terms and conditions (though the Royalty Fee and Marketing Fee will remain 6% and 1% of net payments during the initial renewal term, respectively). Additionally, they must sign a general release of any and all claims against AFC Franchising, LLC and its affiliates, and make any required modifications and improvements to the Franchised Business and premises to bring it into compliance with AFC Franchising, LLC's then-current System Standards for new Centers.
Training & Support Program
Franchisor Assistance
AFC Franchising, LLC provides pre-opening assistance that includes mandatory and suggested specifications and layouts for the center's location, guidance for working with designated contractors and suppliers for build-out, providing an email address for the center and some employees, an initial training program for the franchisee or their Operating Principal and required attendees, and an Opening Consultant who visits the business for 3 days to assist with pre-opening and opening. AFC Franchising, LLC also loans franchisees a copy of its Manual and helps them develop an advertising and marketing plan. On an ongoing basis, AFC Franchising, LLC offers training, conferences, and seminars for franchisees and certain employees, for which reasonable registration fees may apply. It provides advice on the Franchised Business's operation based on reports and observations, offering guidance on operating procedures, marketing, employee training and recruiting, and administrative/accounting procedures. Each Franchised Business is assigned a Business Consultant for telephone and/or on-site assistance. AFC Franchising, LLC also administers the Marketing Fund and may retain third-party providers for computer and network service and support, offering a limited help desk for the Computer System.
Initial Training Hours
99
Training Location
Birmingham, Alabama
Ongoing Support
After opening, AFC Franchising, LLC provides ongoing training, conferences, and seminars for the franchisee or their Operating Principal and certain employees, which may incur reasonable registration fees. AFC Franchising, LLC advises franchisees on their business's operation, offering guidance on standards, marketing, employee training and recruiting programs, and administrative/accounting procedures. Each Franchised Business is assigned a Business Consultant who provides continuous assistance and advice via telephone consultation and/or visits. AFC Franchising, LLC also administers the Marketing Fund for advertising, marketing, and public relations programs. Additionally, AFC Franchising, LLC may retain third-party providers or an Applications Service Provider (ASP) or Managed Services Provider (MSP) to offer computer and network service and support, including a limited help desk, at no extra cost. Franchisees are also required to participate in the Franchisee Council.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
limited
Territory Size Requirements
AFC/American Family Care territories are defined by a geographic area that typically encompasses a population of approximately 50,000 people. The precise size and scope of each territory are determined by factors specific to the location, including population, demographics, local competition, the proximity of any existing AFC/American Family Care centers, and the availability of suitable sites.
Staffing Notes
An AFC/American Family Care franchised business requires the franchisee or an Operating Principal to manage and provide general oversight on a full-time basis. A Center Administrator must be employed before the business opens, responsible for the direct supervision of the center. Each Center Administrator and any designated management personnel must meet specific qualifications and complete mandatory training programs, maintaining annual licensing and certifications. Additionally, one full-time Marketing Representative is required to be hired at least 30 days prior to opening, responsible for marketing and promotions, and must also complete training. The Professional Corporation (PC), a separate entity, is responsible for employing and controlling all medical staff, including physicians, nurses, X-ray technicians, and medical receptionists, ensuring they are duly licensed and board-certified with relevant experience. AFC/American Family Care explicitly states it does not control the PC's or franchisee's employee policies, including hiring, firing, wages, or scheduling; these are the sole responsibility of the franchisee and the PC. Operating Principals and Center Administrators are required to sign confidentiality and non-compete agreements.