Home Care Assistance Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$105,550 - $226,350
Franchise Fee
$20,000
Min Cash Required
$25,000
Total US Locations
27
Business Summary
A Better Solution In Home Care (or Caring Solutions In Home Care in Washington and Florida) operates an agency that markets and provides supplemental non-medical and companion care to clients in their homes, as well as in assisted living or nursing facilities. The business model involves matching clients with qualified, pre-screened caregivers using proprietary software and systems to provide customized care plans.
Corporate History
ABS Franchise Services, Inc. was incorporated in California on November 5, 2014, and began franchising its A Better Solution In Home Care brand in November 2014. It operates under this name, and in Washington and Florida, also offers franchises under the 'Caring Solutions In Home Care' brand. The franchise offering is based on its affiliate, A Better Solution In Home Care, Inc.'s over 20 years of experience in home care, which was established in 2000 and incorporated in 2002. Another affiliate, Compatible Home Care, Inc., incorporated in 2009 and previously sold two franchises but no longer offers them. Caring Solutions Management and Staffing Services, Inc. (CSMSS), incorporated in 2019, provides management and administrative services to the franchisor's franchisees, if chosen by the franchisee.
Financial Overview
Investment Range
$105,550 - $226,350
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$55,000
Minimum Cash Required
$25,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$1,600
Equipment Costs (High)
$8,850
Working Capital
$42,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
A Better Solution In Home Care's financial statements indicate a net loss of $95,749 for the year ended December 31, 2022. The company explains this loss was a strategic decision to focus on effectively onboarding the many new franchise locations sold in 2021. The company has since reorganized its support infrastructure and adjusted staff positions to better align expenses with revenue, believing these actions have strengthened its position. Despite the 2022 loss, the company asserts there is no doubt about its ability to continue as a going concern and provide high-level support to its franchisees. However, the franchisor's FDD includes a special risk disclosure, noting that its financial condition, as reflected in the financial statements, raises questions about its financial ability to provide services and support to franchisees.
Financing Details
ABS Franchise Services, Inc. does not provide any direct or indirect financing to its franchisees. This includes not guaranteeing any notes, leases, or other financial obligations. Franchisees are solely responsible for securing their own funding through external sources.
Performance Metrics
Total US Locations
27
Franchised Units
25
Corporate Units
2
Avg Square Footage
450
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
A Better Solution In Home Care is currently involved in one legal case filed on May 31, 2024. Day Venture Enterprises, LLC and its principals Pamela and Kenneth Day filed a complaint against ABS Franchise Services, Inc. and its affiliates in the Superior Court of California, San Diego County. The Days allege promissory estoppel, breach of contract, false advertising, fraudulent inducement, fraud, constructive fraud, violation of California Bus. & Prof. Code § 17200, and negligence. They claim they were fraudulently induced into the franchise agreement by misrepresentations that the A Better Solution In Home Care system offered a 100% passive business model, and that the franchisor and its affiliate breached agreements by failing to provide this model. The Days are seeking to cancel the agreements, unspecified monetary damages, punitive damages, and attorney's fees. The case is in its initial pleadings stage, and A Better Solution In Home Care disputes the allegations and intends to vigorously defend the matter. There are no other litigation cases required to be disclosed.
Bankruptcy History
A Better Solution In Home Care has no bankruptcy history to report for itself or its management personnel, as no bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, A Better Solution In Home Care franchisees must be in good standing, meaning they are current on all fees to the franchisor and its affiliates, have not had more than two late payments with written notices in the last three years, and are not in material breach of any agreements. Franchisees must also substantially comply with operating standards, give 12 to 18 months' prior written notice of their intent to renew, pay a renewal fee equal to 25% of the then-current initial franchise fee, and sign the franchisor's then-current franchise agreement, which may have materially different terms. Additionally, franchisees must maintain possession of the approved premises or secure new approved premises, remodel or refurbish the premises, signs, and equipment to meet current brand image, and must not have engaged in unethical or dishonest business dealings that could harm the brand or the franchisor. Franchisees must also have met minimum Royalty Payments during the preceding term.
Training & Support Program
Franchisor Assistance
A Better Solution In Home Care provides pre-opening assistance including licensing the brand marks and system, designating the franchisee's territory, loaning operational manuals, providing office size and layout specifications, and reviewing proposed leases. Franchisees receive a grand opening kit with marketing materials, help with ordering business cards and recruiting materials, copies of job descriptions, an office supplies checklist, and access to an intranet and a customized external website. The franchisor also assists with establishing a financial forecast and suggesting pay scales and billing rates. Initial training for the franchisee and up to two additional personnel (manager and scheduler) is 5 days at the franchisor's headquarters or an arranged location. During operation, ongoing assistance includes 4 days of initial on-site training within the first 120 days (if staff are hired), ongoing consultation and advice on administrative, operating, and sales issues, and on-site coaching which includes quality assurance audits and business development planning. Franchisees receive ongoing analysis and recommendations for billing and pay scale rates, administration of the marketing fund, and periodic revisions to the operations manual. The franchisor offers suggestions on staffing, hosts an annual conference (mandatory for franchisees at their expense), and may offer additional refresher training. Optional services available for a fee include after-hours on-call staffing ($400 per week) and comprehensive management, administrative, staffing, coaching, and supervision services from an affiliate, Caring Solutions Management & Staffing, Inc., for an initial $20,000, followed by $2,500 per month after the initial six-month period.
Initial Training Hours
80
Training Location
Franchisor headquarters in San Diego, California
Ongoing Support
After opening, A Better Solution In Home Care franchisees receive ongoing consultation and advice in response to specific administrative, operating, and sales inquiries, communicated via phone, writing, or electronically. The franchisor provides 4 days of on-site coaching during the first year for quality assurance audits, coaching, and continuing education, which may be split into multiple visits. Franchisees receive on-going analysis and recommendations for billing and pay scale rates, and the franchisor administers the marketing fund and periodically revises the operations manual. Suggestions on staffing matters are also provided. Franchisees are required to attend an annual conference, paying their own expenses. Additional refresher training courses may be offered optionally or made mandatory for a fee. Franchisees receive weekly coaching calls for their first 6 months, and then monthly check-in calls for up to 1 year at no charge. For an additional fee ($400 per week), franchisees can opt for after-hours on-call staffing services or have their phones answered by the franchisor's call center for breaks or vacations. An affiliate, Caring Solutions Management & Staffing, Inc., offers optional administrative, staffing, coaching, and basic management and supervision services for $2,500 per month after an initial six-month period.
Franchise Requirements
Ideal Candidate Profile
A Better Solution In Home Care seeks franchisees with entrepreneurial and managerial abilities and a strong focus on customer service. It is not necessary for candidates to have prior experience in the home care industry. Franchisees or their designated managers must devote full-time effort to managing and operating the business. If a franchisee chooses to use the optional management services provided by an affiliate, they must still actively assist in the performance of the manager's duties. If the franchisee is a corporation or other entity, one owner must be designated as the manager and each owner must personally guarantee the Franchise Agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
2
Territory Size Requirements
A Better Solution In Home Care defines its territories to typically include a population of approximately 500,000 people, defined by zip codes and physical boundaries. The franchisor considers various demographic factors, population concentration, competitor presence, traffic patterns, and economic data when setting original territory sizes. Franchisees who achieve $1,000,000 in Gross Revenues during their second full year of operation may be offered the option to expand their territory to include an additional 100,000 people in a continuous geographic area, if available, for an additional fee.
Staffing Notes
A Better Solution In Home Care requires franchisees to initially have at least two people working the business: one Operations Manager and one Scheduler. Both of these individuals must successfully complete the franchisor's initial training program and meet the franchisor's minimum standards. If a new or replacement manager or scheduler is hired, they must complete the applicable training program within 60 days (manager) or 30 days (scheduler) of assuming the role. The franchisor provides suggestions on staffing matters, including recommended organizational charts, detailed position descriptions, and interview guides. Franchisees are responsible for all employment decisions, including hiring a sufficient number of qualified personnel, conducting criminal background checks on all prospective employees, ensuring employees pass governmental tests, and submitting to drug tests. All staff and caregivers are paid directly by the franchisee, and independent contractors are not permitted under the business model. Employees must also actively participate in safety training programs and maintain a professional appearance, including wearing uniforms if required. A live on-call staffer must be available 24 hours a day, 7 days a week, 365 days per year.