About 1HCS Franchise
1Heart Caregiver Services is a non-medical homecare agency franchise specializing in caregiving services to the elderly and other adults who do not need nursing home care but require some assistance in meeting their healthcare needs.
Franchisees operate an agency that provides in-home supportive non-medical services to elderly and disabled individuals, staffing services including CNA services to skilled nursing facilities, transitional care services, in-home respite care for people with developmental disabilities and dementia, and staffing to senior living facilities and Residential Care Facilities for the Elderly (RCFE).
Additional revenue sources may include referral income derived from providing clients to senior living facilities and other home healthcare agencies, as well as training fees collected through the 1Heart Caregiver University.
1HCS Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $60,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue (Brand Fund Contribution) | National brand fund |
| Total Investment Range | $125,650 – $153,260 | Includes build-out, inventory, working capital |
The investment range of $126K–$153K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenue) and marketing fee (2% of Gross Revenue (Brand Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $60,000 | $60,000 |
| Operating Software (3 months minimum) | $360 | $360 |
| Rent (3 Months) | $2,250 | $4,500 |
| Utility Deposits | $0 | $225 |
| Leasehold Improvements | $0 | $1,500 |
| Insurance | $2,500 | $3,500 |
| Office Supplies | $500 | $1,125 |
| Training | $500 | $3,000 |
| Signage | $500 | $2,500 |
| Furniture, Fixtures & Office Equipment | $200 | $2,700 |
| Initial Marketing Package Fee | $1,500 | $1,500 |
| Computer Equipment Services & Software | $1,125 | $3,000 |
| Dues & Subscriptions | $475 | $925 |
| Licenses & Permits | $100 | $6,285 |
| Legal & Accounting | $1,000 | $7,500 |
| Additional Funds - 3 months of Operations | $35,000 | $55,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | $0 (not currently assessed) |
| Technology Fee | $6 to $15 per email account per month |
| Audit Fee | $1,500 to $5,000 |
| Local Marketing Program (LMP) | $1,000 to $3,000/month depending on number of territories and gross revenue level |
| Required Software Fees (CRM/Timekeeping) | $120/month minimum or $12/additional client over 10 |
| Required Accounting Software | Approximately $2,000/year |
| Insurance Policies | Approximately $350/month (if franchisor obtains on behalf) |
| Substitute/New Manager Training | $500/day plus expenses |
| Additional Training Fee | $500/day plus expenses |
| Temporary Management Fee | 8% of Gross Revenue during management period (minimum 30 days) plus costs |
| Annual Franchise Convention Registration Fee | $750 per attendee; $750 non-attendance fee per Territory |
| Late Fees | 1.5% per month or highest rate allowed by state |
| Approval of Products or Suppliers | $500 to $1,000 |
| Cost of Enforcement | All costs including reasonable attorney's fees |
| Territory Infringement Policy Fee | $5,000 first infringement; $10,000 second and subsequent plus 100% of infringing Gross Revenue |
| Additional Royalty Fee (Out-of-Territory) | Additional 5% of Gross Revenue from out-of-Territory clients |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 44 hours total (40 classroom + 4 on-the-job) |
| Classroom Training | 40 hours |
| On-the-Job Training | 4 hours |
| Training Location | Franchisor headquarters in Encino, California or another designated location |
| Additional Training | Ongoing training and webinar conferences as necessary; refresher training available at no additional fee if space permits; annual franchise convention attendance required |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Designated by specific zip codes with a typical minimum population base of 35,000 seniors (70 years old or older) |
| Description | Exclusive territory designated by specific zip codes. Territory boundaries determined based on population, median population age, number of senior living facilities and hospitals, market potential, proximity to competitors and other franchisees, and natural/physical/political boundaries. Territorial protection is not dependent on performance requirements, but franchise agreement may be terminated upon uncured material default. Franchisee may not solicit clients or market outside territory. If franchisee fails to meet Minimum Annual Gross Revenue, franchisor may reduce or eliminate exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $0 (not currently assessed) |
| Renewal Conditions | Must have fully complied with franchise agreement; have right to maintain possession of approved location; made necessary capital expenditures; satisfied all monetary obligations; not in default; given timely written notice (9-12 months prior); sign current franchise agreement (may have materially different terms); comply with current training requirements; sign general release |
| Transfer Fee | $20,000 |
| Transfer Conditions | All obligations paid; general release signed by franchisee and transferee; prospective transferee meets franchisor's standards; transferee signs then-current franchise agreement; copy of all transfer contracts provided; transfer fee paid; transferee's designated manager completes training; transferee obtains required insurance; franchisee signs non-competition agreement |
| Termination for Cause | Curable defaults: 30 days to cure most defaults; 10 days for insurance failures; 5 days for payment failures. Non-curable defaults include: failure to select site or commence operations; failure to complete training; material misrepresentation; felony conviction; unauthorized use of confidential information; abandonment for 5+ days; unauthorized transfer; bankruptcy; misuse of Marks; repeated failures (2+ occasions in 12 months) |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, franchisee and owners prohibited from owning or working for a competitive business within 25 miles of the franchise location or within the Territory (whichever is greater), or within 25 miles of any other 1Heart Caregiver Services Franchised Business; prohibited from soliciting customers, employees or business associates |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must at all times be under the direct, day-to-day, full time supervision of the franchisee (or one of their Principals) or an approved operating manager. If an operating manager supervises, the franchisee must remain active in overseeing operations. The designated manager must devote not less than 35 hours per week. The person responsible for day-to-day supervision must assume responsibilities on a full-time basis and must not engage in any other business or activity that requires significant management responsibility. |
| Required Suppliers | Franchisor is a required supplier for marketing materials. Affiliate may be a required supplier in the future. WellSky Personal Care is the required CRM and timekeeping software provider. |
| Supply Restrictions | Approximately 45% to 60% of expenditures for establishing the business and 15% to 20% on an ongoing basis must be purchased according to franchisor's standards and specifications. Franchisees must use only approved suppliers for items requiring approval. |
| Franchisor Revenue from Suppliers | During 2024, franchisor received $149,363 in revenue from required purchases, or 6.54% of total revenues of $2,285,487. No affiliate received revenue from sales to franchisees based on required purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee the franchisee's lease or other obligations. |
1HCS Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
1HCS Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
1HCS System Growth
1HCS currently operates 24 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 5 | 0 | 15 |
| 2023 | 8 | 1 | 22 |
| 2024 | 2 | 0 | 24 |
Transfers: 2 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Windes for year ending December 31.
1HCS Franchise — FAQ
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