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HomeCare Advocacy Network Franchise

Audited Financials
HealthcareEst. 2020Omaha, NE

Risk Score

Pending analysis

Investment Range

$130,750 - $212,600

Franchise Fee

$24,850

Total US Locations

12

Business Summary

HCAN Services Business provides a range of in-home care services, including hands-on personal care, non-medical care, assistance, and companionship care for seniors and other adults. It also offers supplemental staffing services for nursing homes, hospitals, and other medical institutional settings, along with home health services and other in-home medical care. These services can be offered using the HOME CARE ADVOCACY NETWORK branding in a primary position, or in a secondary position if the franchisee already operates an existing care services business.

Corporate History

HomeCare Advocacy Network Inc. was formed as a Delaware corporation on April 22, 2020, with its principal business address in Omaha, Nebraska. The company operates under its corporate name and also as "HCAN Services Business." HomeCare Advocacy Network Inc. began offering franchises for HCAN Service Businesses in June 2020. The company does not engage in any other business activities or offer franchises in other lines of business. HomeCare Advocacy Network Inc. has one affiliate, HomeCare Advocacy Network IP, LLC, formed in December 2019, solely for owning and licensing intellectual property related to HCAN Services Businesses; this affiliate has never operated a business similar to the franchised business or offered franchises.

Financial Overview

Investment Range

$130,750 - $212,600

Franchise Fee (Low)

$24,850

Franchise Fee (High)

$49,700

Royalty %

7%

Equipment Costs (Low)

$13,700

Equipment Costs (High)

$22,000

Working Capital

$55,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Going concern qualification

Financial Health Notes

HomeCare Advocacy Network's financial condition raises concerns about its ability to provide services and support to franchisees. The company has sustained substantial net losses, including $464,533 in 2024, and has an accumulated deficit of over $2 million. Based on its current cash usage, HomeCare Advocacy Network anticipates needing additional capital by the end of 2025. While management believes it can secure funding from its stockholders and expects future income from franchise sales, the financial statements reflect significant losses and an accumulated deficit, which calls into question the company's financial ability to provide ongoing services and support to its franchisees.

Financing Details

HomeCare Advocacy Network does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations.

Performance Metrics

Total US Locations

12

Franchised Units

12

Corporate Units

0

Avg Square Footage

700

Franchising Since

2020

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, HomeCare Advocacy Network franchisees must not be in default and must have substantially complied with all obligations of the Franchise Agreement. They need to maintain legal and physical possession of the business premises, ensure the franchised business meets current standards, and provide timely notice of their intent to renew between eight and 14 months before the current agreement expires. Franchisees must also satisfy all monetary obligations owed to HomeCare Advocacy Network and its affiliates, pay the Successor Franchise Fee, execute a general release of claims (except those not permitted to be waived by law), and sign the then-current Successor Franchise Agreement, which may have materially different terms. Additionally, franchisees must meet current qualifications and training requirements.

Training & Support Program

Franchisor Assistance

HomeCare Advocacy Network provides extensive support to its franchisees. Before opening, HomeCare Advocacy Network offers general advice on locating and leasing office space, provides a pre-opening support plan (especially for those with existing businesses adding the brand), and conducts a 10-day initial training program for the Operating Principal and two other individuals at its headquarters in Omaha, Nebraska. Franchisees also receive electronic access to the Operations Manual, a reference to a HIPAA compliance third-party supplier, demographic statistics for their area, a list of pre-opening activities, and various software templates. During operation, HomeCare Advocacy Network conducts a minimum of two on-site visits to the franchise office within the first two years, each lasting one to two days. Franchisees also have access to phone and email support during normal business hours for operational questions, a hosted website with a dedicated content page, and assistance with selecting a vendor for employee background checks. HomeCare Advocacy Network approves or disapproves franchisee advertising and promotional materials within 10 business days. Optional assistance may include advice and materials on business management, marketing, and advertising, updates to supplier lists, and changes or modifications to the System, including new computer programs and techniques. Franchisees also have the opportunity to attend an annual conference for learning.

Initial Training Hours

80

Training Location

Corporate headquarters in Omaha, NE

Ongoing Support

HomeCare Advocacy Network provides ongoing support to its franchisees after they open. This includes a minimum of two on-site visits to the franchise office within the first and second years of operation, each lasting one to two days. Franchisees can also access phone and email support during normal business hours for operational questions. HomeCare Advocacy Network hosts a website for franchisees, including one content page for their business, and assists with the selection of a vendor for employee background checks. Additionally, HomeCare Advocacy Network approves or disapproves any franchisee advertising or promotion materials within 10 business days. Optional assistance may include advice and materials on business management, marketing, and advertising, updates to supplier lists, and changes or modifications to the System, including new computer programs and techniques. Franchisees also have the opportunity to attend an annual conference for learning.

Franchise Requirements

Ideal Candidate Profile

HomeCare Advocacy Network is looking for individuals who will serve as an Operating Principal for the franchised business, maintaining at least a 25% ownership interest. This individual must make the franchised business their primary focus and dedicate their best efforts to its supervision and conduct. Ideal candidates are either new entrepreneurs passionate about providing in-home personal, non-medical, and medical care to seniors and other adults, or owners of existing care services businesses looking to integrate the HomeCare Advocacy Network brand. All candidates must meet the franchisor's standards, complete required training, and be prepared to be hands-on in the business's operation.

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

2

Territory Size Requirements

The HomeCare Advocacy Network franchise territory, called the Designated Area, is defined by specific zip codes. It generally includes a population of approximately 30,000 to 50,000 people aged 65 and older.

Staffing Notes

HomeCare Advocacy Network requires an open office to always have at least two full-time equivalent staff members. One of these can be the Operating Principal, and the other must have the authority to hire, manage, market, and sell the franchised business's services and products. Franchisees may also designate a Director responsible for daily operations, who must devote full-time attention to the business and meet specific qualifications and training requirements. All prospective and current employees must undergo criminal background checks, pass applicable governmental tests, submit to annual medical exams, random drug tests, and participate in safety training. HomeCare Advocacy Network emphasizes that the franchisee is solely responsible for all hiring decisions and for training employees not attending the initial program.