FirstLight Home Care Franchise

Financing Details

FirstLight Home Care, through its affiliate Cornerstone Finance, offers financing to select franchisees. For those purchasing existing FirstLight Home Care businesses, up to $25,000 is available for working capital. For conversion franchisees, up to $25,000 can be financed toward the initial franchise fee. Both loan types carry an interest rate of 1.5% per month (18% per annum). Repayment terms are 36 monthly payments for existing business purchases and 24 monthly payments for conversion franchisees. Mandatory prepayments are based on monthly cash collections: 5% for revenues between $10,000 and $20,000, 10% for revenues exceeding $20,000, and a minimum payment of $250 if revenues are below $10,000. To qualify, franchisees need a FICO score of at least 660 or within the range determined by Cornerstone Finance, no personal bankruptcy within the last five years, and combined liquid assets of at least $75,000 or a net worth of $150,000 (including home equity). The loans are secured by the franchisee entity's stock and assets, plus a personal guaranty from the owners.

Litigation Summary

FirstLight Home Care has no litigation to report in Item 3 of its FDD. The document states that no litigation is required to be disclosed in this item.

Renewal Conditions

To renew their franchise agreement, FirstLight Home Care franchisees must give written notice between 6 months and 1 year before their current term ends. They must be in good standing, meaning no defaults under their agreement or any other agreements with FirstLight Home Care. Franchisees need to demonstrate their ability to occupy their business premises for the entire renewal term and agree to update or remodel the premises to meet current FirstLight Home Care standards. They are also required to sign FirstLight Home Care's then-current Franchise Agreement, which may have different terms including fees and minimum performance standards. A general release of all claims against FirstLight Home Care up to the renewal date must be executed, and franchisees must comply with current training requirements and conform their business to all updated standards. A renewal fee of $7,500 is due, plus an additional area fee if their franchised area has grown since the original agreement was signed.

Staffing Notes

FirstLight Home Care requires a minimum staff of at least two full-time equivalents, including a manager who has completed all necessary training, by the time the franchised business opens. All employees must be directly employed by the franchisee; the use of subcontractors is not permitted. Background checks and credit checks are mandatory for all employees, including managers, before their hire date, and the results must meet the guidelines provided in the Operations Manual. These checks must be updated for existing employees at least annually, or more frequently if concerns arise about an employee's record. The business must always be under the direct, on-premises supervision of the franchisee or an approved, trained individual who dedicates their full time and energy to operating the business.