Signal Health Group logo

Signal Health Group Franchise

Audited Financials
HealthcareEst. 2018Las Vegas, NV
www.signalhg.com

Risk Score

Pending analysis

Investment Range

$40,200 - $345,800

Franchise Fee

$29,500

Min Cash Required

$7,000

Total US Locations

20

Business Summary

Signal Health Group franchisees operate home-based businesses providing a range of medical and non-medical services. These include hospice care, home health services, wellness programs, mental health support, and personal care and companionship services, often for aging and disabled clients. Some franchisees also offer supplemental healthcare staffing services to institutional clients like hospitals and retirement facilities.

Corporate History

Signal Health Group Franchise, Inc. was formed on October 8, 2019, and began offering franchises in October 2019. Its predecessor, Signal Health Group Franchise, LLC, was formed on May 16, 2018, and offered franchises until September 30, 2019. Signal Health Group has affiliates, such as Affordable Home Care, Inc. and Aging and Disabled Home Care LLC, that have operated Signal Health Group businesses since 2012 and 2015, respectively. In August 2021, an affiliate owned by the President and CEO acquired two Signal Health Group franchisee entities.

Financial Overview

Investment Range

$40,200 - $345,800

Franchise Fee (Low)

$29,500

Franchise Fee (High)

$69,500

Minimum Cash Required

$7,000

Royalty %

5%

Marketing %

1%

Equipment Costs (Low)

$100

Equipment Costs (High)

$5,000

Working Capital

$75,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Signal Health Group's financial statements show positive net income for 2023 and 2024 ($105,554 and $141,269 respectively), and a small net income in 2022 ($52,736). The company has a positive stockholder's equity across all disclosed years. While current assets exceeded current liabilities in 2024, Signal Health Group experienced negative working capital in 2022 and 2023. Despite this, the independent auditors have issued an unqualified opinion, indicating the financial statements present fairly without substantial doubt about the company's ability to continue as a going concern.

Financing Details

Signal Health Group does not offer any direct or indirect financing to its franchisees. Additionally, Signal Health Group does not guarantee any notes, leases, or other financial obligations for its franchisees.

Performance Metrics

Total US Locations

20

Franchised Units

18

Corporate Units

2

Avg Square Footage

500

Franchising Since

2019

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Signal Health Group franchise agreement, franchisees must notify Signal Health Group between 90 and 180 days before the current term ends. They must be in good standing and have substantially complied with all contractual obligations throughout the term, without defaulting more than twice. Franchisees also need to uphold Signal Health Group's ethics and values, renovate their business to meet current brand standards, complete any required renewal training, and sign the then-current franchise agreement and related documents. A renewal fee, equal to 20% of Signal Health Group's current initial franchise fee for their territory, is required, along with a general release of claims.

Training & Support Program

Franchisor Assistance

Before opening, Signal Health Group provides franchisees with a Brand Standards Manual, system standards, and a list of approved and required suppliers. The franchisor offers training to the Principal Executive and one other employee at its headquarters at no additional fee (travel and lodging are the franchisee's responsibility). Signal Health Group also reviews pre-opening business plans and financial projections upon request, advises on market introduction plans, and provides 2-3 days of on-site opening support from a representative. For an additional fee, Signal Health Group can assist with state homecare licensing services by working with preferred suppliers. After opening, Signal Health Group provides telephone and electronic advice for business development and operational issues (in-person support incurs a daily fee plus expenses), offers recommended pricing for products and services upon request, and shares recommended administrative, bookkeeping, accounting, and inventory control procedures. Signal Health Group manages the Brand Development Fund and maintains a brand website that includes the franchisee's contact information. Additionally, an advisory council composed of Signal Health Group leadership discusses matters important to the system's growth.

Initial Training Hours

56

Training Location

Corporate office in Las Vegas, Nevada

Ongoing Support

After opening their business, Signal Health Group offers various ongoing support services. Franchisees can request advice (via telephone or electronic communication) for business improvement and resolving operational issues, with in-person support available for an additional fee plus expenses. Signal Health Group also provides recommended pricing and administrative, bookkeeping, accounting, and inventory control procedures upon request. The franchisor manages the Brand Development Fund and maintains a brand website that includes the franchisee's contact information. Additionally, Signal Health Group may require franchisees and their employees to attend additional or refresher training programs, including continuing educational seminars. Franchisees are also required to participate in evaluation and compliance programs, such as customer feedback and mystery shopping, and attend required in-person or remote meetings, including regional or national brand conventions.

Franchise Requirements

Ideal Candidate Profile

Signal Health Group requires its franchisees to operate their business as a corporation or limited liability company. The designated 'Principal Executive' for the business must own at least 10% of the company, participate personally in the direct operations, and devote substantial time and attention to the business. This Principal Executive must successfully complete Signal Health Group's initial training program and any future post-opening training, and make reasonable efforts to attend all required meetings and conferences.

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

Non-Exclusive

Territory Size Requirements

Signal Health Group strives to grant franchisees a territory that includes at least 60,000 resident senior citizens, based on the most current U.S. census data. The boundaries of the territory are defined in the Franchise Agreement's Data Sheet and will not change, even if the population fluctuates. However, Signal Health Group cannot guarantee that every territory will meet the 60,000 senior citizen population target.

Staffing Notes

Signal Health Group mandates that all franchised businesses must always be staffed with at least one individual who has successfully completed the initial training program. For Medical Services franchises, a full-time administrator and a full-time or part-time clinical manager are required, and either must be a registered nurse meeting specific education, experience, and licensing requirements under CMS conditions. All individuals providing care services must be employed by the franchisee, not independent contractors, unless legally mandated otherwise. Franchisees and all employees are subject to criminal background checks, routine rescreening, and must provide at least two satisfactory references. Any employee failing a background check must be immediately terminated.