American Family Care Franchise Costs $1.2M - $1.6M (2024 Stats)

INVESTMENT

$1,169,000

-

$1,652,000

LOCATIONS

217

Debbie

Updated

April 17, 2024

Is

American Family Care

a franchise?

Yes,
American Family Care
currently
accepts
franchise
applications

American Family Care (AFC) offers an attractive franchise opportunity in the healthcare sector, particularly in urgent care services. Founded in 1982 by D. Bruce Irwin, M.D., AFC has established itself as a leader in the urgent care industry, providing a wide range of medical services to over two million patients each year.

The franchise is known for its efficient business model and in-demand services, making it a significant player in the communities it serves​​​​. AFC stands out for its commitment to providing high-quality medical care at an affordable cost, addressing the gap between emergency room services and general healthcare needs.

The franchise model is designed to be accessible even to those without a medical background, focusing on entrepreneurs with business experience who are passionate about making a positive impact in the healthcare sector​​. The franchise offers comprehensive training and support, along with a veteran discount, making it an appealing option for individuals looking to venture into the healthcare industry​​.

For those interested in exploring this franchise opportunity, AFC provides a structured path to ownership, including initial introductory calls, review and discussion of the Franchise Disclosure Document (FDD), validation through conversations with current franchise owners, and a discovery day at AFC's headquarters in Birmingham, AL​​. This supportive approach ensures that franchisees are well-prepared to manage their urgent care centers and contribute to AFC's mission of delivering accessible and efficient healthcare services.

How many

American Family Care

franchises

are there?

In 2022, there were
217
outlets in
the United
States, of which
217
are franchises, and
0
are corporate-owned.

What are the

American Family Care

franchise

fees?

Advertising fee

1.00%

Initial Franchise Fee

The initial franchise fee is Sixty Thousand Dollars ($60,000).

Royalty Fee

The Royalty fee is 6% of the Net Payments of the Franchised Business for each period.

Advertising Fee

The Advertising fee is  1% of your Net Payments, payable in the same manner as the Royalty.

Development Fee

For those signing an Area Development Agreement, the initial ADA Fee is $60,000 for the first Center and $10,000 for each additional Center.

Data Extraction Fee

The Data Extraction Fee is $3,500, payable on demand to reimburse for payments to the EMR services provider.

Annual Training Fee

The Annual Training Fee is $2,000, payable on demand to provide updated training.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

American Family Care

franchise?

It costs between
$1,169,000
and
$1,652,000
to start a
American Family Care
franchise.
Type of Expenditure Amount
Initial Franchise Fee $60,000
Travel and Living Expenses While Training $1,500 - $3,000
Lease, Utility and Security Deposits $6,000 - $10,000
Medical Equipment $125,000 - $155,000
Construction $572,847 - $700,212
Site Selection $5,000 - $10,000
Furniture $10,000 - $15,000
Office Equipment & Computer System $12,000 - $17,000
Initial Medical Supplies $15,000 - $20,000
Initial Advertising and Grand Opening $35,000 - $50,000
Business License & Permits $500 - $2,500
Signage $8,000 - $30,000
Legal/ Professional Fees $5,000 - $10,000
Insurance – GL and Malpractice $6,000 - $12,000
Recruitment $3,000 - $50,000
Credentialing $4,500 - $7,000
Additional Funds (3 months) $300,000 - $500,000
Total $1,169,347 - $1,651,712

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

American Family Care

provide

training

to its

franchisees?

Yes,
American Family Care
provides
training

The franchisor provides comprehensive training for franchisees, their Operating Principal, Center Administrators, and other designated personnel. This training is designed to cover all material aspects of operating a Franchised Business that develops and manages a Center.

The initial training program is conducted at the franchisor's offices in Birmingham, Alabama, or at a designated training facility chosen by the franchisor, typically on a quarterly basis.

Key Aspects of the Training Program Include:

  • Content: The training focuses on the franchisor's Manual, covering all aspects of the Franchised Business. This includes customer service, office and staff scheduling, supply ordering, front desk operations, back-office operations, and file maintenance and security issues.
  • Instructors: The training is provided by department heads and other members of the management team, along with additional training staff and instructors based on their qualifications in specific aspects of the System.
  • Duration and Frequency: The specific duration and frequency of the training program are determined by the franchisor, with instructors having generally between 1 and 5 years of relevant industry experience.
  • Additional and Ongoing Training: The franchisor may also require franchisees, their Operating Principal, and previously trained and experienced personnel to attend and satisfactorily complete various training courses, conventions, regional meetings, and conferences at designated times and locations. The franchisor reserves the right to charge reasonable fees for these additional training courses.
  • Costs: While the initial training for required attendees is provided at no charge, the franchisor reserves the right to charge an initial training fee for any additional attendees. Franchisees are responsible for all travel and living expenses incurred during training.

Requirements for Personnel:

  • All management personnel, including Center Administrators and any other personnel designated by the franchisor, must meet minimum qualifications and complete any required training programs prior to managing the Franchised Business or training other personnel.
  • Franchisees must employ a Marketing Representative, who must be sufficiently qualified and capable of performing specified job functions and duties.

Does

American Family Care

provides

territory

protection?

The franchisor does provide certain protections in the territory granted to its franchisees. Once the franchisor approves a location as the "Premises," it will be identified in the Franchise Agreement, and the "Territory" will be determined. The franchisor grants a territory where the franchisee will manage the Center, but it is important to note that the franchisee does not receive an exclusive territory.

This means franchisees may face competition from outlets that the franchisor owns or from other channels of distribution or competitive brands controlled by the franchisor.

However, except under specific conditions outlined in the Franchise Agreement, the franchisor will not establish or operate, nor grant a franchise for the operation of another Franchised Business or a similar urgent care management business operating under a different mark or trade name, within the franchisee's Territory during the term of the Franchise Agreement.

Can a

American Family Care

franchise

be run as

a passive

investment?

The franchisor requires that either the franchisee or their Operating Principal must manage and provide general oversight of the Franchised Business on a full-time basis. Additionally, the Center Administrator, who is responsible for the direct supervision of the Center, must devote their full time and best efforts to the management and supervision of the Center.

Failure to have the Franchised Business managed on a full-time basis by the franchisee or their Operating Principal is considered a default, for which the franchisor may terminate the Franchise Agreement if the default persists for 30 days after notice from the franchisor.

It is also required that the franchisor is kept informed at all times of the identity of any supervisory employee(s) or acting Center Administrator. If a franchisee owns or controls more than one Franchised Business, each Center must be under the direct on-premises supervision of a Center Administrator who has completed the franchisor's training programs and obtained certifications that the franchisor may specify.

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