Senior Care Master Franchise

Transcription

1 How to Acquire and Make a Fortune Owning a Senior Care Master Franchise WHAT IS A MASTER FRANCHISE Within the world of franchising, there exists a little-known opportunity that can create a fortune, known as a Master Franchise or Area Representative Franchise. It is simply the owning of the rights to develop a franchise system within a territory. This territory can be a metropolitan area, an entire state, several states or even a country. The Master Franchisee assists the franchise company in developing the territory in exchange for a share in the royalty revenues and franchise fees that are generated from operations within that territory. The Master Franchise owner (Master Franchisee) pays the franchisor a fee for these rights and must provide certain services to existing franchisees within the defined territory. In building that territory, the Master Franchisee usually does not enter into agreements with the franchisees (unit franchise buyers) but rather helps facilitate the coming together of the franchisor and the franchisee. Once franchisees have entered into franchise agreements, the Master Franchisee assists the Franchisor in the management and development of the Master Franchise territory. For this ongoing service the franchisor pays the Master Franchisee a split in the royalties and franchise fees earned within the territory. This can represent up to one-half or more of the revenue stream earned by the franchisor within the territory. With owning a Master Franchise you enjoy all the benefits of being a franchisor without the burden of having to develop a concept from scratch. The franchisor has a proven track record, brand name, and a successful operating system. You basically become their partner in a territory. The franchisor provides you with training, valuable support, latest innovations and business experience. 1 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

2 THE RAPIDLY EXPANDING SENIOR CARE INDUSTRY Health care is the largest industry in the United States, and seniors are the fastest growing segment of the population. More than 10,000 people turn 65 in the USA every day, and this trend will continue for decades to come. When investigating any investment opportunity, one must first consider the industry in which they intend to invest. You will learn exciting facts about the growth of the largest segment in the healthcare industry Senior Care. Approximately 7.6 million people in the United States require some form of home health care, according to research published by the University of Alabama (UAB). And more and more people are determined to "age in place, maintaining the dignity and respect of a self-sufficient lifestyle. In the next 30 years the number of people 65 or older is expected to double. The number of people over 85 years of age will triple. (The National Council on the Aging) The trend toward community-based services as opposed to nursing home placement was formalized with the Olmstead Decision (July, 1999), in which the Supreme Court upheld the right of individuals to receive care in the community as opposed to an institution whenever possible. Seniors are growing in number and they are living longer. According the US Census Bureau the average life expectancy in 2000 was 74 years for men and nearly 80 for women, compared to 66 years for men and 72 years for women in The Bureau of Labor Statistics' recent survey predicted an increase in the personal and home care aides job category - forecasting it to be the second fastest-growing job group in the nation over the next decade. By 2030, 70 million Americans will be over the age of 65. This is one out of every five Americans. 2 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

3 About 80 percent of seniors have at least one chronic health condition and 50 percent have at least two which are some of the leading causes of activity limitations among older people. This provides a large demand for in-home care services. After age 65, an American has more than a 70 percent chance of needing help with the activities of daily living like dressing, bathing and using the bathroom. (American Society on Aging) Elders represent the fastest-growing age group in the United States. It is projected that the 75+ population will increase 70% by Hospitals are penalized for readmissions within 30 days. The average age of readmissions was 80.3 years for patients originally hospitalized for heart failure, 79.8 years for patients originally hospitalized for acute myocardial infarction and 80 years for patients originally hospitalized for pneumonia. Hospitals are referring patients to in-home senior care companies to cut costs. The health care industry is the largest, most dynamic, recession-resistant market for decades to come! And the Senior Care market is the fastest growing segment of the health care industry. HOW FORTUNES ARE MADE A Senior Care Master Franchise could be the safest, quickest and most profitable way to make a franchise fortune. Owning a Senior Care Master Franchise is the ultimate franchise opportunity. It provides numerous advantages over other franchise opportunities and can yield multiple streams of income such as receiving royalties and franchise fees, building equity, developing and selling franchises for a substantial profit, acquiring underperforming franchises and providing various services. 3 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

4 Example RECEIVING ROYALTIES AND FRANCHISE FEES Assume you purchased a Master Franchise territory from a Senior Care franchise company (franchisor) at a pre-determined amount. Your agreement with the franchisor is that you would receive 50% of each franchise fee and 50% of the royalty income. Let s assume that the franchise fee is $45,000 per individual franchise unit sold. The franchise fee is a one-time fee paid to the franchise company when someone purchases a franchise. The Master Franchisee receives 50% of the franchise fee which is $22,500 from each franchise sold in their territory. The royalty that each franchisee pays is 6% of their gross revenue each month. This is an on-going monthly fee that each franchisee pays to the franchise company. The Master Franchisee receives 50% of this amount which is 3% of gross revenue per month from each franchise in their territory. If 10 to 50 individual franchise units open in your territory, Your potential royalty income could be $300,000 to $1,500,000 per year. In addition you would have received franchise fee income of $225,000 to $1,125,000. (This example is for explanation purposes only and not a guarantee) Your income from franchise fees and royalties alone would be very substantial and could provide a lifetime income for you and your heirs. BUILDING EQUITY Once franchise units open in a Master Franchise territory, it can significantly increase the value of a Master Franchise business. Also as other units open in other territories and the Franchise Company grows, a territory may become very valuable because others may wish to buy it and can be easily be sold for a tremendous profit. 4 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

5 UNIT DEVELOPMENT Because of the reduced costs to the Master Franchisee (usually half the franchise fee and other reduced operating costs) a Master Franchisee, if desired, could open their own unit franchises and sell them for a considerable profit and build substantial royalty income. Example The Master Franchisee decides to develop their own franchise units because they can inexpensively open them and sell them above their cost for a profit. Individual Senior Care franchise units can sell for up to one times gross revenue. For a franchise unit to achieve $1,000,000 in gross revenue it could only need 20 clients using their services for 6 hours per day 7 days a week at $23 per hour. 6 hours x $23 per hour x 7 days a week x 20 clients = $1,000,000 This individual unit franchise could sell for up to a $1,000,000. (This example is for explanation purpose only and not a guarantee.) The size of the Master Franchise territory would determine the amount of units the Master Franchisee could sell or develop, which is typically from 10 to over 50 franchises. The Master Franchisee could develop multiply franchises at once because they could operate them all out of one office. The sales price that a Master Franchisee could realize from each individual unit sale would be determined by the gross revenue and profitability of each unit. The Master Franchisee would determine how much revenue they need to generate from each franchise unit before selling it to receive their desired profit. Example If a Master Franchisee decided to develop 20 units and sold them for an average of only $500,000 each, the gross profit from unit development would be $10,000,000. (This does not include profits generated from unit operations.) 5 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

6 By developing and selling franchise units the Master Franchisee could realize a tremendous return on investment and would be building their own substantial royalty stream. After each franchise unit sale the Master Franchisee would collect half the royalty fee that each franchisee pays. Usually about 3% of gross revenue per month per franchise. This could add up to a very large sum on a yearly basis. KEY CRITERIA FOR A SUCCESSFUL MASTER FRANCHISE & THE SENIOR CARE MASTER FRANCHISE ADVANTAGE You want a business that is not a short term trend or fad. The Senior Care industry is not a short term trend or fad it is going to continue to dramatically grow for the next 30 years. You want high grossing franchisees because you get a percentage from each individual franchises gross sales. Senior care franchises can be very high grossing. 1-3 million in revenue or more are very common in the industry. You want profitable franchisees Senior Care franchises can be very profitable businesses. Industry averages are 25-30%. You want low cost franchises. Senior Care franchises are inexpensive to buy compared to most franchises. Many people can afford to buy one. 6 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

7 You want to be able to develop and sell franchises for a large profit. As a Senior Care Master Franchisee franchise units are inexpensive to open because of reduced cost to the Master Franchisee and can be sold for a large profit. You want no specialized knowledge required. No specialized knowledge is required and almost anyone can be trained to operate an individual Senior Care franchise in a minimal amount of time. You want no Real Estate purchase required or leases necessary for franchisees so they don t have to put up collateral and risk financial loss. Can start from home. No Real Estate or lease required. You want no investment in inventory No inventory to purchase for Master Franchisee or unit franchisees. As you can determine, a Senior Care Master Franchise has many benefits and advantages over other Master Franchises and standard unit franchises. A Senior Care Master can be an extremely profitable investment. 7 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

8 OTHER ADVANTAGES Build a Lifetime Income Your Heirs. Pass on a substantial monthly royalty income to your heirs. Financial Leverage. Leverage the royalty stream to develop additional units and increase the royalty income and value of the Master Franchise territory. Acquire Under Performing Units. Master Franchisees will have firsthand knowledge of underperforming units which they can acquire and turn around for a considerable profit. Financing Franchisees. Because the Master Franchisee receives half the franchise fee the Master Franchisee could use that money to partner with potential unit franchisees or finance them. Prestige. The prestige of owning a Senior Care Master Franchise and controlling an entire area can provide tremendous satisfaction and financial leverage. Very Few Employees. Typically a Senior Care Master Franchisee will operate a Master Franchise by them self and then could possibly if needed expand to having an administrative assistant, or other support staff or sales person. It is not unusual for Master Franchisees after having developed their area to semi-retire and spend minimal time with their business while enjoying a large substantial income. More Freedom. A Senior Care Master Franchisee usually doesn t have to deal with the day to day operations of running a unit franchise, but they still receive a portion of all gross sales from individual franchise units in their territory. Very Few Customers. A Master Franchisee's clients are their franchisees. They help support them. Low Overhead. Minimal operating costs. Minimal Office Space Required. They can usually start with a home office and may never need to expand to an outside office if not desired. No Experience Needed. You will be provided with complete training and continual support from the Franchisor. 8 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

9 ACQUIRING A SENIOR CARE MASTER FRANCHISE Olvian Manz is definitely the Master Franchise expert. No one is more Knowledgeable or professional. Harold Kestenbaum Franchise Attorney New York Our firm is the nation s leading expert in Master Franchising and specializes in Senior Care. Franchisors (franchise companies) rely on us for the pre-screening and Master Franchise sales process. We can provide you with information about the best Master Franchise opportunities currently available in your desired area. Senior Care Master Franchises are limited and sell quickly so contact us today to find out what is available. What You Will Need: Experience needed. Management, sales, business, operations or marketing experience are helpful but not essential. People and Communication Skills. A pleasant personality and enjoy working with others to help them succeed. Desire to Follow a Proven system. The franchise system offered is a system for success when followed. Although suggestions are always welcome to improve the system, it is not wise to buy a franchise unless you believe you can follow their system. Financially Qualified. The minimum investment required is $50,000 and the average investment ranges are between $100,000 to $250,000. If you believe you have what it takes and are serious about obtaining a Senior Care Master Franchise contact us at your earliest convenience. Opportunities are extremely limited and sell quickly. For our current Senior Care Master Franchise Recommendations call C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

10 BUYING A SENIOR CARE MASTER FRANCHISE WITH RETIREMENT ACCOUNTS The tax laws in the United States prevent savers from dipping into their 401K, IRA, profit-sharing, or annuity plans. In fact, in many states, you ll lose up to 50% of your funds in taxes and penalties, just for accessing the savings you ve worked so hard to accumulate. But they can be used to purchase a Senior Care Master Franchise. We will assist you by explaining how you can utilize your retirement plans such as an IRA or 401K plan to obtain a Senior Care Master Franchise. Professionals are ready to help you setup this IRS approved structure to allow you to release the money in your retirement funds and use it for a fresh start in business without penalty, without taxes, and without debt. Aside from cash in savings or money market accounts, it is an effective and proven method to fund a Senior Care Master Franchise investment. FREQUENTLY ASKED QUESTIONS What are the best Senior Care Master Franchises to buy? In-home care Master Franchises because they have high grossing franchisees. Also they have the ability to have many franchise units in a territory. Can I own a Senior Care Master Franchise and have someone else manage it? Yes. We can even help you find someone. I am too busy with my current job. Can I still own a Senior Care Master Franchise? Yes. Will I receive complete training when I buy a Senior Care Master Franchise? Yes. Can I pass my Senior Care Master Franchise onto my heirs? Yes. 10 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C

11 Can I own more than one Senior Care Master Franchise? Yes. Some people own multiple Senior Care Master Franchises. Do I have to open up a franchise unit myself? Not usually. But you can if you desire at a substantial reduced cost and royalty savings. Do I need to train franchisees? No not usually. The Franchisor trains the franchisees. Can I sell my Senior Care Master Franchise at any time? Yes in most instances. Is there financing for Senior Care Master Franchises? Not usually. Some franchisors may. Can I put a partnership together with others to buy a Senior Care Master Franchise? Yes. We can help guide you. Are there any partnerships that own a Senior Care Master Franchise that I can invest in? Yes. Many times other individuals are seeking partners. As they become available we can notify you. Can I buy a Senior Care Master Franchise using my IRA/401K funds? Yes. You can fund a Senior Care Master Franchise purchase without any penalties or taxes using retirement funds. We can direct you to a reputable company that handles the rollover process. CONTACT US Master Franchise Investments, LLC 410 S. Rampart Blvd., Suite 390 Las Vegas, Nevada Phone: info@masterfranchises.com Web: 11 C o p y r i g h t M a s t e r F r a n c h i s e I n v e s t m e n t s, L L C