ATC Healthcare Services Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$158,500 - $301,500
Franchise Fee
$28,125
Total US Locations
42
Business Summary
ATC Healthcare Services operates a franchised business that specializes in providing temporary and permanent staffing solutions for medical professionals to various healthcare facilities. This includes hospitals, nursing homes, hospices, and medical clinics. The business focuses on placing registered nurses, licensed practical nurses, nurse practitioners, certified nursing assistants, certified medical assistants, and similar healthcare professionals.
Corporate History
ATC Healthcare Services, LLC was originally formed as a corporation, ATC Healthcare Services, Inc., in September 1985. It later reorganized into a limited liability company and was renamed in September 2017. ATC Healthcare Services began offering franchises in May 1996, building on its experience in providing medical professional staffing solutions. The company operates under the 'ATC Healthcare Services' name and related trademarks.
Financial Overview
Investment Range
$158,500 - $301,500
Franchise Fee (Low)
$28,125
Franchise Fee (High)
$50,000
Royalty %
45%
Marketing %
1%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$10,000
Working Capital
$105,900
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
ATC Healthcare, Inc. (the guarantor) has audited financial statements with an unqualified opinion, indicating that the financial statements present fairly, in all material respects, its financial position. As of September 30, 2024, the company's cash balance increased to $19,913,000 from $11,828,000 in 2023, and total stockholders' equity rose to $43,321,000 from $41,171,000. Cash flows from operating activities were positive at $7,712,000 in 2024. However, the company experienced a decrease in service revenues, from $173,723,000 in 2023 to $141,730,000 in 2024, leading to a corresponding drop in net income from $7,567,000 to $2,148,000 during the same period. The company also received positive litigation settlements and government inquiry returns in 2024.
Financing Details
ATC Healthcare Services does not offer general financing for initial investment or operations directly, nor does it guarantee third-party loans. However, it provides a specific program called the Experience Success Program (ESP) for qualified franchisees with at least five years of staffing company branch management experience. This program offers a line of credit of up to $150,000 in the first year, with at least $50,000 of that amount potentially forgiven if program requirements and goals are met. The loan has a three-year payback period at an interest rate of 2% above the Wall Street Journal posted prime rate, adjusted annually. This loan does not require collateral beyond a personal guarantee from the franchisee and their spouse. Additionally, ATC Healthcare Services offers a Daily Pay Program for healthcare associates, which involves advances drawn on the franchisor's account, treated as a direct cost to the franchisee, and requires a fidelity bond.
Performance Metrics
Total US Locations
42
Franchised Units
37
Corporate Units
5
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
ATC Healthcare Services has no litigation history that is required to be disclosed in its Franchise Disclosure Document. This means ATC Healthcare Services, its management, or any affiliates have not been involved in any material litigation, including administrative, criminal, or civil actions alleging felonies, franchise law violations, fraud, or other significant legal proceedings.
Bankruptcy History
ATC Healthcare Services has no bankruptcy history to report for the franchisor, its affiliates, predecessors, officers, or general partners during the past 10 years.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, ATC Healthcare Services franchisees must provide written notice between nine and six months before their current term ends. They must be in substantial compliance with the franchise agreement throughout the initial term and in full compliance at its expiration. Franchisees are required to sign the franchisor's then-current franchise agreement and other ancillary documents, which may have materially different terms, including higher fees. They must also maintain possession of an approved site for their office, refurbish or renovate their office to meet current brand standards, obtain landlord consent for lease renewal, and ensure all monetary obligations to ATC Healthcare Services and its affiliates are current. Additionally, franchisees must pay a renewal fee of $5,000 and sign a general release of claims against the franchisor.
Training & Support Program
Franchisor Assistance
ATC Healthcare Services provides franchisees with comprehensive support starting before their business opens. This includes reviewing and approving the proposed office site, identifying required operating assets and approved suppliers, and lending a virtual copy of the Brand Standards Manual. The franchisor also offers initial training for up to two people (including the franchisee) at no extra charge. After opening, ATC Healthcare Services handles all payroll, fringe benefits, and related taxes for temporary medical staff placed by the franchisee, prepares customer billings, and collects accounts receivable, distributing the balance to the franchisee monthly. Ongoing support also involves inspecting the business to ensure compliance, assisting with business development (including reviewing contracts, seeking national accounts, and providing staffing leads), and allowing the use of their trademarks. The franchisor conducts periodic refresher training, webinars, and annual meetings, some of which may be mandatory. They also provide staffing software for scheduling, tracking employees, clients, and orders, along with an Applicant Tracking System (ATS) and Human Resources Information System (HRIS). Franchisees also pay an initial marketing fee for start-up marketing and promotion assistance.
Initial Training Hours
87
Training Location
Corporate headquarters in New Hyde Park, New York, with some remote or on-site portions available.
Ongoing Support
After opening, ATC Healthcare Services franchisees receive continuous guidance on operations, standards, and procedures through the Brand Standards Manual, bulletins, emails, and consultations. The franchisor manages all payroll, benefits, and related taxes for temporary medical staff, handles customer billing, and collects accounts receivable. They provide monthly reports of billings and collections to the franchisee and distribute the balance. Ongoing support also includes inspecting the business for compliance, assisting with business development, seeking national accounts, and providing staffing leads. Franchisees can expect periodic refresher training courses, conference calls, and webinars, some of which are mandatory. The franchisor has the right to hold various franchisee meetings and annual conventions, which may be mandatory, covering new procedures, marketing strategies, new services, and additional training. They also provide staffing software, an Applicant Tracking System (ATS), and a Human Resources Information System (HRIS) for managing employees and clients.
Franchise Requirements
Ideal Candidate Profile
ATC Healthcare Services seeks individuals to become franchisees who are prepared to operate their business for at least 40 hours per week. While prior experience in the healthcare industry is not required, previous experience in the temporary or permanent staffing industry is helpful. Franchisees must ensure at least one person with healthcare staffing experience is employed in their business. If the franchisee will not be personally involved in the day-to-day operations for 40 hours per week, they must hire a full-time recruiter and a full-time business development associate to manage and develop the business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
1
Territory Size Requirements
ATC Healthcare Services grants franchisees a protected territory based on a population of a minimum of 500,000 people. The franchisee's specific office location must be situated more than one mile from any of the territory's border.
Staffing Notes
ATC Healthcare Services requires franchisees to employ at least one person with healthcare staffing experience in their business. If the franchisee is not actively involved in the day-to-day operation for at least 40 hours per week, they must hire a full-time recruiter and a full-time business development associate. A General Manager or successor General Manager must complete the franchisor's training program if employed by the franchisee. All internal employees are required to complete specific online training modules relevant to their job responsibilities before gaining access to the various systems used in the office. Franchisees must also notify the franchisor of new staff hires, their titles, and job descriptions, and report employee releases within three business days. ATC Healthcare Services expects prompt notification of any human resources incidents, regardless of severity, and prohibits independent communication with clients or authorities without the involvement of the franchisor's compliance or human resources department.