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Disadvantages of Owning A Nursing Agency Franchise


Owning Your Own Nursing Agency Franchise

Are there multiple locations of nursing agencies in your area of business? If the answer is yes, then owning a nursing agency franchise is probably not in your best interest. Why? Nursing Agency Franchisor takes a significant cut in your earning. As your own non franchise business you have complete control of the business. With a franchise, you are buying into an existing business with a set of plan establish by the franchisor. There are many levels of managers within a franchise therefore their is less flexibility. You are your own boss but have less control of your own business in a nursing agency franchise. The levels of support from the franchisor are varied.

Initial invest cost and start up cost of a franchise can be very expensive. Franchise start up cost can be as low as $25,000 to go as high $5 million.  Majority of cost are between $150,000 to $300,000. The price all depends on the location and the type of industry. Nursing Agencies and Home Health care business franchise varies so much that it is hard to put a number. Owning a Nursing Agency business is most economical when no franchisor is involve. 


Nursing Agency and Home Healthcare Franchise Cost

Initial Franchise cost is a one time fee, upfront amount cost for franchisee to pay the franchisor for the rights of its brand, its system. It usually covers the franchisor onboarding cost which typically includes: training, marketing, commissions, and other services that pertains to the operation of the franchise. The initial franchise fee is usually non-negotiable. Initial franchise fees are non-refundable but they are less that the initial investment. Franchise owners also pays an ongoing cost such as royalty fees, marketing fees which is a significant portion of running a business. To renew or not to renew a franchise agreement. For both parties, they can legally terminate the agreement after the agreement expires. Owning a franchise is not an  automatic business success for the franchise owners. Choosing the the location and support services of your nursing agency franchise and the entrepreneurial experience can help you succeed in the nursing agency business.

Is investing in Nursing Agency Franchise better than Starting From Scratch.

Getting into a Nursing Agency franchise seems like the easy way to start a Nursing Agency business or Home Healthcare Business. A reasonable  chance of generating a profit, but owning a nursing agency or home healthcare business does not truly offer the chance to make you wealthy because of its initial cost, franchise fees, royalty fees, initial investmentsf, tight margins and other fees in starting a nursing agency or home healthcare business. 


There are many barriers to entry for Nursing Agency and Home Healthcare business that prevents most aspiring nurses and other entrepreneurs from getting their own business. The bottom line is whether starting from scratch or buying a franchise, the success of the business involves hard work, perseverance, entrepreneurial experience and existing wealth can help you succeed.

Starting A Nurse Staffing Agency Business in Alabama

Contact all necessary agencies that you feel may regulate your business. For Nursing Agencies, one maybe the Department of Health, Secretary of State, and Department of Labor, as well as tax requirements agencies. Do not rely on second hand information. There are forms to be completed that you only the one will know about your business, and usually must be signed by the owners.  Keep at least 6 years of record.

Alabama Department of Revenue

For taxpayer requirements, the Alabama Department of Revenue deals with state taxes requires to operate your business. The Alabama Department of Revenue assist taxpayers may answer all your questions about business taxes. Contact the Internal Revenue Services for tax information. They usually have forms and publications. In most cases, Federal Employers Identification, Federal Income Tax, and Federal Self Employment Tax is required. Determine if your business requires state and local taxes are required.

State, City and County Licensing

State, City, County licensing officials will determine if you need a permit to operate a nursing agency in your area. Generally, all you need is a state license, but in some cases the county license is required.

Business structure

There are several business structures options, and you must determine is most appropriate for your business.  They are partnerships (general, limited, limited liability, llcs,lle, S Corporations. These are business structures terms for business tax and legal purposes.  You can contact the Business and License Tax Division for more info.

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