American Family Care Franchise in 2024: Costs, Fee & FDD
Explore the potential of an American Family Care franchise! Our detailed analysis covers investment costs, revenue insights, and key operational factors, helping you determine if this medical franchise is the right opportunity for you. Read more to learn how AFC stands out in urgent care.
Table of Contents:
American Family Care (AFC) was founded in 1982 by Dr. Bruce Irwin, a physician with a vision to create a more accessible and convenient healthcare model. The franchise has become a significant player in the urgent care and family care sectors, blending medical expertise with a patient-centric approach. AFC’s model emphasizes providing high-quality, affordable medical care outside the traditional hospital setting, offering an attractive alternative for those needing immediate attention without the lengthy waits often associated with emergency rooms.
AFC specializes in urgent care and family medicine, addressing a wide array of non-life-threatening conditions such as injuries, illnesses, and preventive care. Their core services include walk-in urgent care, occupational health services, and routine physical exams. Ancillary services often encompass lab tests, X-rays, and minor surgical procedures. The core market for AFC includes busy families, working professionals, and individuals seeking prompt, efficient healthcare without the constraints of conventional appointment-based systems.
The franchise has grown significantly, boasting over 200 locations across the United States. Each center operates independently, yet adheres to the high standards set by AFC’s franchise model. The brand’s daily customer base includes thousands of individuals seeking quick, reliable care, and the franchise’s expansive footprint is a testament to its popularity and effectiveness in meeting urgent healthcare needs.
AFC provides robust support to its franchisees, including comprehensive training programs covering everything from medical protocols to operational procedures. The franchise also offers ongoing support in marketing, technology, and business development. With a focus on maintaining consistency and quality across all locations, AFC ensures that franchisees are well-equipped to deliver exceptional care while benefiting from the strength and recognition of a trusted brand.
American Family Care Franchise Insights
- AFC is one of the largest urgent care providers in the U.S., with over 200 locations serving approximately 3 million patients annually.
- AFC has achieved an impressive year-over-year unit growth rate of 30%, significantly outpacing the urgent care industry’s median growth rate of 10%, highlighting its strong market presence and effective business model.
- AFC has established key partnerships with major insurers and corporations, enhancing its ability to attract a diverse and steady patient base.
- AFC maintains a patient satisfaction rate of over 95%, reflecting the franchise’s commitment to quality care and customer service.
American Family Care Franchise Key indicators
Unit Growth YOY (%)
30%
vs industry 10%
Total U.S. Franchised Units
280
3-Year Failure Rate
3%
vs industry 8%
Sales-to-Investment ratio
1.9:1
How much does it cost to open an American Family Care franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening an American Family Care franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening an American Family Care franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open an American Family Care below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $60,000 | $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 | $627,274 | $829,351 |
| 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 – General Liability and Malpractice | $13,000 | $17,000 |
| Recruitment | $3,000 | $50,000 |
| Credentialing | $4,500 | $7,000 |
| Additional Funds (3 months) | $300,000 | $500,000 |
| Total Estimated Initial Investment | $1,227,774 | $1,778,851 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
When considering an investment in a franchise like American Family Care, it’s crucial to understand the financial requirements. This ensures you have the necessary capital to cover initial expenses and maintain operations until the business becomes profitable. Let’s take a closer look below:
- Initial Investment The total investment to open an American Family Care franchise ranges from approximately $1.23 million to $1.78 million. This includes the franchise fee, real estate, construction, medical equipment, and other startup costs. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement American Family Care typically requires potential franchisees to have at least $550,000 in liquid assets. This ensures that you have enough cash on hand to cover operating expenses, initial costs, and unforeseen expenses during the early stages of operation.
- Net Worth Requirement Franchisees should have a minimum net worth of approximately $1.2 million, demonstrating financial stability and the ability to support the business through its initial growth period.
These figures are industry estimates based on available data and may vary depending on location, lease terms, and other factors.
How much does an American Family Care franchise owner make?
Calculating the salary of an American Family Care franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of an American Family Care franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
American Family Care Revenue & Gross Sales
Based on most recent analysis, American Family Care franchises achieved a median gross sales of $1,802,554, reflecting a decrease from the previous year. This decline highlights the challenges faced by the franchise, possibly due to market fluctuations or operational adjustments. Despite this dip, AFC remains a significant player in the urgent care industry, with its strong brand presence and established customer base continuing to drive business stability.
Which key factors impact the average revenue performance of American Family Care franchisees?
The decrease in U.S. franchisee median gross sales for American Family Care may be attributed to several factors. Economic fluctuations and market saturation in certain regions could have impacted patient volume and revenue. Additionally, increased competition from other urgent care providers or telemedicine services may have diverted potential patients. Operational challenges, such as staffing shortages or rising costs for medical supplies, might also have contributed to the decline. Lastly, changes in healthcare regulations or patient behaviors, such as a shift towards more preventive care or home-based treatments, could have influenced the overall financial performance of the franchisees during the past year.
American Family Care Franchise Operational Costs
When opening an American Family Care franchise, it’s important to understand the primary ongoing operational costs that will be essential for running your business smoothly. These costs are crucial for maintaining high-quality healthcare services and ensuring the long-term success of your clinic. Key operational costs include:
- Staffing Expenses Salaries for medical professionals, administrative staff, and support personnel.
- Medical Supplies and Equipment Maintenance Ongoing costs for necessary medical supplies and regular equipment upkeep.
- Rent or Mortgage Payments Regular payments for your clinic’s location.
- Utilities Costs for electricity, water, internet, and other essential services.
- Insurance Costs Coverage for liability, malpractice, and other business-related risks.
Understanding and managing these operational costs effectively will be vital to maintaining your clinic’s profitability and reputation. By carefully planning and budgeting for these expenses, you can ensure that your American Family Care franchise thrives in the competitive healthcare market.
American Family Care Franchise Fees
When operating an American Family Care franchise, it’s important to budget for ongoing fees that contribute to the franchise’s overall support and marketing efforts. These fees help ensure your business remains competitive and aligned with the brand’s standards. Key fees include:
- Continuing Service and Royalty 6% of Net Payments for the preceding week, due on the Wednesday immediately following the previous week.
- Marketing Fund 1% of Net Payments. Through the Marketing Fund, the franchisor may make available certain marketing materials that you may purchase for your use in local advertising and promotion.
- Additional Fees There are additional fees for training programs, technology, and other items provided by American Family Care that may be applied.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating an American Family Care franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by American Family Care.
American Family Care Franchise Earnings
The earnings of an American Family Care (AFC) franchise owner can vary depending on factors such as location, patient volume, and operational efficiency. However, as an owner-operator, AFC franchisees can achieve substantial income based on median gross sales.
With a median gross sales figure of $1,802,554, an owner-operator of an AFC franchise can expect estimated earnings of around $360,000 per year which would indicate an operating margin of 20%. This estimate assumes that the franchisee is directly involved in managing the clinic, overseeing day-to-day operations, and maintaining cost efficiency.
These earnings, calculated before interest, taxes, depreciation, and amortization (EBITDA), reflect the potential profitability of actively managing an AFC location. If the location is management semi-absentee then you can expect a lower operating margin due to increased spend on management support.
How to Open an American Family Care Franchise
Becoming a franchisee with American Family Care (AFC) involves a structured process designed to ensure that both the franchisee and the franchisor are well-aligned for success. This process includes several key steps, from the initial inquiry to the grand opening of your clinic.
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After the initial conversation, you’ll complete a formal franchise application. This application will include a review of your financial qualifications, including net worth and liquid assets, as well as an assessment of your business experience.
- Discovery Day If you decide to move forward, you’ll be invited to a Discovery Day at AFC’s headquarters. This event allows you to meet the leadership team, tour the facilities, and gain a deeper understanding of the business model.
- Franchise Agreement After Discovery Day, if both parties are satisfied, you’ll sign the Franchise Agreement. This legally binding contract formalizes your commitment to opening an AFC clinic.
- Site Selection and Approval With the agreement in place, you’ll begin the process of selecting a location for your clinic. AFC’s real estate team will assist you in identifying and securing an optimal site, subject to approval by the franchisor.
- Training and Preparation Once the location is secured, you’ll undergo comprehensive training. This includes both classroom instruction and hands-on experience at an existing AFC clinic. Training covers everything from medical protocols to business operations and marketing strategies.
- Clinic Build-Out and Setup While you’re in training, the build-out of your clinic begins. This involves constructing and outfitting the clinic with the necessary medical equipment and technology. AFC provides guidance throughout this process to ensure your clinic meets brand standards.
- Pre-Opening Marketing and Hiring As your clinic nears completion, you’ll work on pre-opening marketing efforts to build awareness in the community. Simultaneously, you’ll hire and train your medical and administrative staff with support from AFC.
- Grand Opening Once everything is in place, your clinic will be ready for its grand opening. AFC will assist with launch marketing and provide on-site support during the first days of operation to ensure a smooth start.
- Ongoing Support After your clinic is operational, AFC continues to offer ongoing support in areas like marketing, operations, and staff training, helping you maintain and grow your business.
Pros & Cons
Pros
Established Brand: AFC is a well-recognized name in the urgent care industry with a strong reputation for quality care, which can attract patients and build trust quickly.
Growing Industry: The urgent care sector is expanding rapidly, with increasing demand for convenient, accessible healthcare services. This growth trend can enhance the potential for profitability.
Proven Business Model: The franchise has a track record of success with over 200 locations, providing a tested and refined business model that can help reduce the risks associated with starting a new business.
Cons
High Initial Investment: The total investment to open an AFC franchise ranges from $1.23 million to $1.78 million, which can be a significant financial commitment and may require substantial funding.
Revenue Fluctuations: Recent median gross sales figures indicate a decline, which could reflect challenges in the market or operational issues. Understanding these trends is crucial before committing.
Operational Complexity: Managing a healthcare franchise involves complex regulatory compliance, medical equipment maintenance, and staff management, which can be demanding and require specialized knowledge.
Competitive Market: The urgent care industry is competitive, with numerous players in the market, including other franchise brands and independent clinics. This competition can affect patient volume and profitability.
