ATC Healthcare Franchise Costs, Fees & Owner Salary (2023)

ATC Healthcare is a renowned player in the healthcare staffing industry, known for its robust franchise model. The company was established in 1982 and has its headquarters in Lake Success, New York. ATC Healthcare began offering franchise opportunities in 1985, allowing entrepreneurs to be a part of the growing demand for healthcare staffing services​​​​​​.

ATC Healthcare specializes in providing a comprehensive range of staffing solutions across the healthcare sector. This includes recruiting and placing healthcare professionals like nurses, CNAs, and other care providers in hospitals, health systems, and medical facilities. Their services are designed to meet the rapid staffing needs of the healthcare industry, ensuring quality and timely care for patients​​​​.

What sets ATC Healthcare apart from its competition is its focus on creating a stable and predictable business model for franchisees, emphasizing low overhead and extensive back-office support.

This support includes payroll, billing, collections, HR, marketing, and technology services, enabling franchisees to focus on business growth and community engagement. ATC Healthcare's franchise model is tailored for individuals with strong leadership skills and deep community ties, regardless of their background in healthcare​​​​.

Initial Franchise Fee

The initial franchise fee for a new franchise is set at $50,000. For those opting for multiple units under the discount package, the fee structure is $50,000 for the first unit, followed by $40,000 and $30,000 for the second and third units respectively.

Royalty Fee

Franchisees are required to pay a royalty fee of 45% of the gross margin from temporary employee placements and temp-to-hire perm placements. For permanent employee placements, the royalty fee is 30% of the gross margin.

Local Advertising

A mandate of 1% of Total Revenue is allocated monthly towards local advertising efforts to ensure brand visibility and outreach.

Brand Development Fee

An additional 1% of Total Revenue is contributed monthly to a brand development fund, facilitating broader marketing and brand enhancement initiatives.

Additional Training On-Site

Franchisees may incur a per diem fee ranging from $800 to $1,200, along with reimbursement of expenses, for any requested additional on-site training.

Transfer Fee

A standard transfer of the franchise agreement incurs a fee of $15,000. Transfers to immediate family members or for additional territories to the same entity are discounted to $7,500. Among existing owners of the Franchised Business, the transfer fee is reduced to $1,000.

Renewal Fee

Upon renewal of the Franchise Agreement, a fee of $5,000 is applicable to continue the franchising partnership.

Computer Fees

Annual maintenance and update fees for computer systems are set at $1,000 to ensure smooth operational functionality.

Initial Investment for a Startup Single Unit:

The franchisor provides comprehensive training to franchisees and their managers, which is mandatory for all new franchisees. This training is designed to ensure that franchisees and their managers are well-prepared to operate the Franchised Business according to the franchisor's standards and procedures. Here's an overview of the training provided:

1. Initial Training Program: Before the Franchised Business opens, the franchisee and their manager must complete the franchisor's initial training program to the franchisor's satisfaction. The initial training program is conducted approximately every other month and includes around four days of training at the franchisor's headquarters in New Hyde Park, New York, or it may be completed remotely at the franchisor's discretion. This training covers various aspects necessary for operating the Franchised Business, such as the history of ATC Healthcare Brand, credentialing, and the ATC Mission Statement and Operating Principles.
2. Weekly or Bi-Weekly Training for the First Year: Additional training is provided on a weekly or bi-weekly basis for the first 12 months. This ongoing training is tailored to the specific needs of the individual franchisee and the manager to ensure they receive the support needed to successfully run the Franchised Business.
3. Training Portals: The franchisor has set up training portals where each internal employee must complete certain training modules based on their job responsibilities before gaining access to various systems. This ensures that all staff members are adequately trained and familiar with the franchisor's systems and procedures.
4. Refresher Training and Mandatory Programs: The franchisor may also provide periodic refresher training courses, conference calls, webinars, and other programs, some of which may be designated as mandatory. These sessions are designed to keep franchisees and their staff updated on new developments and best practices.
5. Materials: The materials used in the initial training program include the Brand Standards Manual and any other resources that the franchisor believes will benefit franchisees in the training process.

It's important for franchisees and their managers to complete the training to the franchisor's satisfaction. Failure to do so may require retaking the training program, and consistent failure to meet the franchisor's training standards could lead to termination of the Franchise Agreement. The franchisor's comprehensive training program is designed to ensure that franchisees and their staff are well-equipped to meet the brand's standards and successfully operate their Franchised Business.

The franchisor does provide a form of territory protection to its franchisees, but it is not exclusive. The designated territory is based on a population minimum of 500,000 people, and the specific office location must be situated more than half a mile from the border of the designated territory.

During the term of the franchise agreement, the franchisor and its affiliates agree not to operate or grant a franchise for the operation of another franchised business within the territory, provided the franchisee is in full compliance with the franchise agreement.

However, existing franchisees in the system may have territories of different sizes, which could be larger or smaller than the new franchisee's territory, and the franchisor is not required to adjust these territories to accommodate size differences. Franchisees should be aware that they will not receive an exclusive territory. They may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

The franchisor requires franchisees to actively participate in the day-to-day operation of the Franchised Business. According to the Franchise Disclosure Document, franchisees must "at all times faithfully, honestly, and diligently perform their contractual obligations" and are expected to be involved in the staffing levels, employee qualifications, training, dress, and appearance of the Franchised Business.

While franchisees may hire a manager to assist in overseeing the daily operations, both the franchisee and the manager must satisfactorily complete the franchisor's initial training. The manager is not required to own an equity interest in the Franchised Business, but the franchisee's active participation is emphasized. This indicates that the franchisor's model is geared towards owner-operated franchises rather than passive investments​​.