The startup costs for a Vital Care home infusion pharmacy can be recouped quickly once you become operational. And we help you with everything you need to get started as soon as you can. In 2019, the average gross revenue of a Vital Care franchise was $3,271,449, with an average startup cost range of only $450,000 to $650,000. Let’s take a look at some of the major startup costs and see what you’ll need to start your home infusion pharmacy franchise.
The startup costs begin with the $40,000 franchise fee, which provides access to the Vital Care network with all its cost savings, branding, and multidisciplinary expertise. This franchise fee is due upon signing the franchise agreement and is comparable to the franchise fee for other franchising companies. After the franchise fee is paid, the next biggest cost will be setting up a clean room which can cost $60,000 to $120,000. Prices for clean rooms will vary based on location, vendor and other details.
After setting up the clean room, the rest of the startup costs cover your initial inventory and accreditation fees, as well as computer equipment and initial marketing expenses, like building a website and ordering local marketing materials.
Now that we have seen the range of startup costs for a Vital Care home infusion franchise, we will look at the minimum requirements for ownership and how to finance your startup franchise costs.
How do you finance the startup costs of a Vital Care home infusion franchise?
At a minimum, we require $150,000 liquid capital, which is needed in the first one to four months of the startup process. That will provide you the financial base to get your Vital Care franchise started and support your business through the beginning period. This initial capital is used for the franchise fee and the pharmacy buildout. Beyond the initial investment, it is important that you have access to an additional $300,000 to $500,000 in capital to support the startup of your business and have access to the capital required to operate a successful home infusion pharmacy. If you have any questions or want to discuss your options, please reach out to the franchise development team to start a conversation.
Many Vital Care franchise owners utilize SBA 7(a) loans for their startup costs. Vital Care Inc. is an approved franchise on the SBA National Registry. The registry offers a list of franchises that have had their Financial Disclosure Documents vetted by the Small Business Administration. Including Vital Care on the list saves several steps in the SBA lending process, allowing franchisees to access funds more quickly. While it is faster, the SBA lending process takes 90-100 days on average. There are numerous SBA lenders with experience in pharmacy funding, and many local and regional banks offer SBA lending products.
Another option is partnering with investors who are looking for ways to invest in the Vital Care brand and vision, but need an operating partner. These partnerships frequently happen within the Vital Care network, and our franchise development team works to connect potential operators with investors and vice versa. The best thing to do if interested is to reach out to the team to begin discussing your home infusion opportunity.
Another option is using personal capital such as savings or retirement funds. You can tap retirement funds penalty-free to start a business, as long as you do it the right way. The process can be tricky — it involves forming a corporation and a special type of retirement account, then rolling over your old 401(k) or IRA — but it’s no problem for an expert. You would need to reach out to a financing company to get assistance and vet the process for yourself.
Want a closer look at the startup costs of a Vital Care home infusion franchise?
Here is a look at other startup costs, as outlined in the Item 7 section of our Franchise Disclosure Document. If you are converting your home infusion business to a Vital Care franchise, your initial costs may be significantly reduced. You can discuss this with the franchise development team as you move forward in the application process.
The fees listed below total $142,500-$202,500, excluding any additional labor expenses. These costs can fluctuate, but provide a general idea of needed funding for your startup costs. If you would like to ask questions about any of these expenses, please reach out to our franchise development team to discuss this.
Paid to Whom
Upon execution of the franchise agreement
Vital Care, Inc.
Approved outside vendors
Marketing and Sales expenses
Before opening – ongoing
Varies based on gross margins
Vital Care, Inc.
Now that we looked in-depth at the startup costs for a Vital Care home infusion franchise, you can better determine if you have access to the capital needed to start your franchise. We encourage applicants to begin seeking financing, if required, as soon as their home infusion opportunity is determined.
If you have not yet discovered your home infusion opportunity, let us know. We can share information with you that can help you better identify a home infusion opportunity near you.