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How Much Does It Cost to Open Sarah Care Franchise?

If you are looking towards opening a Sarah Care Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. SarahCare Adult Day Services, Inc. was founded in 1985 and they began franchising in 2000, about 20 Years ago and they have their corporate head office at Canton, OH. Presently, there are about 23 franchised locations in the USA. They have locations at Florida, Georgia, Indiana, Michigan, North Carolina, Ohio, Pennsylvania, and Texas.

At SarahCare, because of the new Medicare Advantage Plans that now allows for coverage of adult day services, it is a great time to invest in the rapidly growing senior market as a member of the SarahCare family. They are the only company in the country who has been proven over time to be successful in offering franchises in adult day care.

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SarahCare Adult Day revolutionizes the senior sector, which offers a franchising business model that meets the needs of an aging population and business owners who want to make a difference. Entrepreneurs who invest in the SarahCare system believe the benefits of joining a growth franchise system provides them with a stable foundation to help them build a successful business

SarahCare Adult Day Care Center Services (SARAH Adult Day Services) is a franchise that provides health-care related services and non-medical care combined with social interaction and group social activities for senior citizens or individuals with health-related needs. SARAH’s adult day care offerings provide an effective solution for individuals in need of support services in order to continue living in their communities.

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Here are areas where you are expected to spend money and the cost associated with it;

  1. Initial Investment Range


  2. Franchise Fee


50% of all franchisees own more than one unit

Number of employees needed to run franchised unit: 10 – 15

Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators)

  1. Royalty Fee

    10 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution

    At least 1 percent per calendar year and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Sarah Care and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.

If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement

    This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.

  2. Audit Costs

    All costs and expenses associated with the audit, reasonable accounting and legal costs.

  3. Indemnity

    This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Sarah Care if it is held liable for claims arising out of your franchise operations.

  1. Insurance

    Reimbursement of costs the franchisor’s out-of-pocket costs.

  2. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Sarah Care if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Sarah Care is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: This is open for negotiation with the company
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Sarah Care has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Investment: $261,000-$280,000
  • Initial Franchise Fee: $34,900
  • Ongoing Royalty Fee: 5%
  • Liquid capital required: $50,000
  • Net worth required: $200,000