Executive Care Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$99,950 - $143,700
Franchise Fee
$31,410
Total US Locations
21
Business Summary
Executive Home Care Franchising, LLC offers a franchise business that provides comprehensive in-home care services to clients and supplies supplemental healthcare staff to institutional clients. This includes a range of non-medical services for home care clients, such as medication reminders, personal care, meal preparation, and transportation, as well as staffing solutions for facilities like hospitals and nursing homes. Executive Home Care Franchising, LLC franchisees must operate from an approved office location and ensure staff availability 24 hours a day, 7 days a week.
Corporate History
Executive Home Care Franchising, LLC was established as a New Jersey limited liability company on June 5, 2012, and concurrently began offering franchises for Executive Care Businesses. The company's operations are exclusively focused on franchising and administering the Executive Care system. Prior to this, a former affiliate of Executive Home Care Franchising, LLC operated a similar business from May 2004 to November 2021. In November 2021, The Riverside Company, a global private equity firm, indirectly acquired the Executive Home Care Franchising, LLC franchise system.
Financial Overview
Investment Range
$99,950 - $143,700
Franchise Fee (Low)
$31,410
Franchise Fee (High)
$49,900
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$5,000
Working Capital
$45,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Executive Home Care Franchising, LLC's financial health raises significant concerns about its ability to provide services and support to its franchisees. The company's parent, EHC Holding Company, LLC, has experienced ongoing operational losses and has a deficit in its net capital. These issues create substantial doubt about Executive Home Care Franchising, LLC's ability to continue operating as a going concern.
Financing Details
Executive Home Care Franchising, LLC does not offer any direct or indirect financing options to its franchisees. This means franchisees are solely responsible for arranging their own funding for the business, and Executive Home Care Franchising, LLC will not guarantee any loans or other financial obligations.
Performance Metrics
Total US Locations
21
Franchised Units
21
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Executive Home Care Franchising, LLC has disclosed three litigation matters, all of which are historical and have been resolved. In 2016, an affiliate's predecessor, The Brothers Franchising, Corp., settled with Virginia for an unregistered franchise sale, incurring a $2,500 penalty. Separately, Executive Home Care Franchising, LLC filed a lawsuit and arbitration in 2015 against a former franchisee, Marshall Health Corp., alleging breaches of contract and trademark infringement. The arbitration concluded in 2016 with the arbitrator denying Executive Home Care Franchising, LLC's claims and awarding Marshall Health Corp. $215,386. Executive Home Care Franchising, LLC also filed a lawsuit and arbitration in 2015 against another former franchisee, Specialized Home Care Providers, LLC, with similar allegations. This case settled in 2016, with the defendants paying Executive Home Care Franchising, LLC $55,000 in exchange for a release from post-termination restrictive covenants. There is no other litigation required to be disclosed.
Bankruptcy History
Executive Home Care Franchising, LLC has no bankruptcy history to disclose. No officer, general partner, or affiliate has filed for bankruptcy or been involved in bankruptcy proceedings that require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Executive Home Care Franchising, LLC franchisees must meet several conditions. They must not be in default of their current franchise agreement and must provide Executive Home Care Franchising, LLC with timely notice of their intent to renew. Franchisees will need to sign the franchisor's then-current form of franchise agreement, which may have terms and conditions materially different from their original contract. They are also required to sign a general release (subject to state law), pay a renewal fee, and update their business to conform to the franchisor's current standards for new franchisees.
Training & Support Program
Franchisor Assistance
Executive Home Care Franchising, LLC provides various forms of assistance to its franchisees. Before opening, Executive Home Care Franchising, LLC designates the franchisee's territory and must approve the selected office site. The franchisor provides prototype office layout plans and specifications to guide in furnishing the business. Initial training is provided to the Responsible Owner and Designated Manager, currently virtually at no charge, but may be required at the corporate office for up to three individuals free of charge. Franchisees also receive a list of approved suppliers and equipment. Before opening, Executive Home Care Franchising, LLC inspects the business and issues a "Certificate of Opening". After the business opens, Executive Home Care Franchising, LLC may develop new services and methods, and provides access to and updates a confidential Operations Manual. The franchisor may also hold mandatory annual conferences, for which franchisees pay a registration fee and cover their own travel expenses. Executive Home Care Franchising, LLC's representatives may conduct periodic visits to the franchisee's business.
Initial Training Hours
30
Training Location
Virtual
Ongoing Support
Executive Home Care Franchising, LLC provides ongoing support to its franchisees through various means. The franchisor, at its discretion, develops new services and methods and shares information about these developments. Franchisees are lent or given access to an Operations Manual, which is periodically revised with updates communicated via email or other written means. Executive Home Care Franchising, LLC may hold mandatory annual conferences, which the Responsible Owner and Designated Manager must attend, to discuss sales, training, and operational improvements. The franchisor's representatives may also make periodic visits to the franchisee's business. Additionally, Executive Home Care Franchising, LLC may offer additional or refresher training programs, for which a fee of $750 per person per day plus travel expenses may be charged.
Franchise Requirements
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
Limited
Staff Count
2
Territory Size Requirements
Executive Home Care Franchising, LLC defines its franchise territories to include a minimum population of approximately 300,000 people. These territories are based on population demographics and may be delineated by municipal boundaries, natural boundaries, or zip codes, postal codes, or other factors as determined by Executive Home Care Franchising, LLC.
Staffing Notes
Executive Home Care Franchising, LLC requires franchisees to employ at least one full-time branch manager and one full-time patient coordinator from the start of operations. Franchisees are responsible for all employment decisions, including hiring, firing, training, and complying with labor laws. All prospective employees must undergo criminal background checks, pass governmental tests, and submit to drug tests. Franchisees must ensure staff availability 24 hours a day, 7 days a week, to provide services and backfill for absent staff, and also offer live client-service support around the clock. Depending on state laws, a full-time Registered Nurse or other professional may also be required.