About Medcross Franchise
Medcross is a home care franchise providing non medical personal care services and, in certain cases, limited skilled nursing care to clients in their homes and temporary living facilities.
Services include personal care assistance, meal preparation, medication reminders, light housekeeping, transportation, companionship, and specialized services such as wound care and physical therapy for qualifying locations.
The franchise fee is $55,000, and Medcross has been franchising since 2018.
Medcross Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $55,000 | One-time payment upon signing |
| Royalty Fee | 7.5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues (System Marketing Fund) plus at least $1,000 or 1% of Gross Revenues (Local Marketing), whichever is greater, with up to half of local expenditure potentially contributed to an advertising cooperative. | National brand fund |
| Total Investment Range | $99,550 – $137,750 | Includes build-out, inventory, working capital |
The investment range of $100K–$138K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7.5% of Gross Revenue) and marketing fee (2% of Gross Revenues (System Marketing Fund) plus at least $1,000 or 1% of Gross Revenues (Local Marketing), whichever is greater, with up to half of local expenditure potentially contributed to an advertising cooperative.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $55,000 | $55,000 |
| Your Training Expenses | $3,000 | $4,000 |
| Rent deposits | $1,500 | $3,000 |
| Utilities Deposits | $300 | $500 |
| Leasehold Improvements, Construction and/or Remodeling | $0 | $10,000 |
| Office Furniture and Fixtures | $1,000 | $3,000 |
| Signage | $1,000 | $2,500 |
| Licenses and Permits | $500 | $1,000 |
| Office Computer Systems, Equipment and Supplies | $16,500 | $17,500 |
| Initial Inventory to Begin Operating | $1,000 | $3,000 |
| Nursing Equipment | $500 | $1,000 |
| Professional Fees | $3,000 | $5,000 |
| Grand Opening Advertising | $2,000 | $5,000 |
| Insurance | $1,250 | $2,250 |
| Operating Expenses / Additional Funds – 3 months | $13,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of the then-current initial franchise fee. $1,500 for transfers of ownership interest not changing management control. $3,500 for transfers to spouse, parent, or child upon death or permanent disability. 50% of then-current initial franchise fee for transfer to an existing franchisee in good standing. |
| Renewal Fee | $5,000 |
| Technology Fee | Currently $0. Franchisor reserves the right to impose a fee for software license or maintenance, website hosting and maintenance, franchisee web portal access, or other technology services. |
| Audit Fee | Cost of examination plus related expenses, if understatement of Gross Revenue by 2% or more. |
| Interest Charge | 1.5% per month from due date, or maximum allowed by law |
| Non-Sufficient Funds Fee | $100 |
| Interim Management Fee | Currently $1,000 per day during the term of interim management, plus all travel related and other expenses. |
| Initial Training (for subsequently hired personnel) | $1,500 per person |
| Additional Training | A reasonable fee for all System training programs, plus travel and other related expenses |
| Remedial Training Fee | Our then-current trainer per diem rate plus expenses. Current per diem rate is $1,500 per day, plus travel and other expenses. |
| Evaluation Fee | Actual cost of inspection and testing of a proposed item or vendor. |
| Confidential Operating Manual Replacement Fee | $100, or our then-current fee |
| Quality Review Services | Varies (Payable to third-party providers) |
| Indemnification | Amount of loss or damages plus costs |
| Damages, Costs and Expenses for Non-compliance | Actual damages, costs and expenses |
| Insurance Reimbursement | Amount paid by us for your insurance obligations |
| Taxes | Amount of taxes |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | one (1) week |
| Classroom Training | 24 hours |
| On-the-Job Training | 26 hours |
| Training Location | Burke, Virginia |
| Additional Training | Mandatory or optional additional training programs from time to time, up to five (5) days per year at a designated location, and an annual business meeting or conference up to three (3) days per year at a designated location or on-line training sessions no more than one (1) day per month. Reasonable fees may be imposed, not to exceed $2,500 per year for additional training programs, plus travel, lodging, meals, and wages. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | approximately 200,000 to 250,000 individuals |
| Description | Located in all or a portion of a listed town, city, or county, and is identified by a group of contiguous zip codes. Determined on an individual basis taking into account demographics, minimum numbers of households, and household incomes. Can be expanded at a charge of $200 per additional 1,000 individuals above 250,000, up to 400,000 total individuals. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | seven (7) years |
| Renewal Term | up to two (2) additional terms of five (5) years each |
| Renewal Fee | ten percent (10%) of the then-current Initial Franchise Fee |
| Renewal Conditions | Be in full compliance, have no more than three (3) events of default during current term, provide written notice to us at least six months before the end of the term, execute a new franchise agreement, pay us a renewal fee of ten percent (10%) of the then-current Initial Franchise Fee, execute a general release, comply with then-current qualifications and training requirements, including completion of additional training. May be asked to sign a new Franchise Agreement with materially different terms and conditions. |
| Transfer Fee | 75% of the then-current initial franchise fee. For transfer to an existing franchisee in good standing, the transfer fee is 50% of the then-current initial franchise fee. For ownership interest transfer not changing management control, $1,500. For transfer to spouse, parent or child upon death or permanent disability, $3,500. |
| Transfer Conditions | Franchisor approval required (not unreasonably withheld if conditions met). Transferee must meet franchisor's standards, have sufficient business experience and financial resources, complete initial training. Franchisee must pay all amounts owed, execute a general release, subordinate claims against transferee to franchisor, indemnify franchisor for 3 years, obtain lessor consent, and franchisor must approve material terms. |
| Termination for Cause | Franchisor may terminate if franchisee defaults. Defaults include: insolvency, bankruptcy, inability to pay debts, unsatisfied final judgment, failure to obtain licenses/permits, falsifying reports, ceasing operations for 5+ days, non-compliance with laws (especially healthcare), understating Gross Revenue 2+ times, failure to comply with insurance, unauthorized transfer, failure to transfer upon death/disability, misrepresentation in application, felony conviction, adverse judgment for fraud/racketeering, concealing revenues, false books, threat to public health/safety, refusing inspection/audit, unauthorized use of Marks/Confidential Information, non-compete violation, 3+ defaults or 2+ default notices in 12 months, insufficient funds 2+ times in 12 months, failure to meet Minimum Performance Standards, or terminating without cause. Curable defaults (non-payment, non-monetary obligations) have a 5-day cure period, but repeated defaults become non-curable. |
| Non-Compete Period | 24 months after the termination of the Franchise Agreement |
| Non-Compete Details | During the term of the franchise, franchisee may not divert customers, participate in any competing in-home personal, companion or health care business, solicit franchisor's employees, or harm goodwill. After termination/expiration, for 24 months, franchisee may not divert customers, participate in a competing in-home personal, companion or health care business within 50 miles of former territory or any Medcross outlet, solicit franchisor's employees, or harm goodwill. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires that you personally supervise your Franchised Business. You may not appoint a manager of the Franchised Business, unless you receive our prior written consent. Your manager must successfully complete our Initial Management Training Program and all other training courses we require. Your manager cannot have an interest or business relationship with any of our competitors. |
| Required Suppliers | You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications. |
| Supply Restrictions | We have identified various suppliers, distributors and manufacturers of equipment, inventory, and services that your Franchised Business must use or provide which meet our standards and requirements. We reserve the right to require you to purchase goods and services from us or any of our affiliates in the future. |
| Franchisor Revenue from Suppliers | None currently, but may in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
Medcross Franchise Earnings — Item 19
Medcross does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Medcross 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.
Medcross System Growth
Medcross currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
| 2023 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by REESE CPA LLC for year ending December 31.
Medcross Franchise — FAQ
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