In 2020, the average gross revenue of a Vital Care infusion pharmacy franchise was $4,665,709, with a minimum required liquid capital of only $150,000 for prospective franchisees. The startup costs for a Vital Care infusion pharmacy can be recouped efficiently once you become operational, and we help you with everything you need to get started as soon as possible. Let’s take a look at how franchisees finance their Vital Care infusion pharmacies and some of the major startup costs.
Financing a Vital Care Infusion Pharmacy
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 additional capital to support the startup of your business and have access to the capital required to operate a successful 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.
Finally, a third option is utilizing 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.
Startup Costs of a Vital Care Infusion Pharmacy
As outlined in the Item 7 section of our Franchise Disclosure Document, the following table outlines the costs associated with starting a Vital Care infusion pharmacy. If you are converting your infusion pharmacy 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 show a low and high range. Costs can fluctuate, but this provides 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.
Investment | Price Range | Payment Method | When Due | Paid to Whom |
|---|---|---|---|---|
Total | $488,530 (Low) to $982,130 (High) | |||
Franchise Fee | $50,000 | Lump-Sum | Upon your
signing the
Franchise
Agreement | Us |
Third-Party Training and
Travel and Living
Expenses During Our
Initial Training Program | $1,000-4,300 | As Incurred | During training | Third-party trainers,
airlines, hotels, and
restaurants |
Accreditation | $6,750-$12,820 | As Incurred | Prior to opening | Third Parties |
Rent and Security Deposit | $5,600-$12,500 | As Incurred | Prior to opening | Landlord |
Leasehold Improvements | $115,170-$304,600 | As Incurred | Prior to opening | Contractors,
architects, suppliers
and other third
parties |
Utilities | $6,250-$16,900 | As Incurred | Prior to opening | Suppliers |
Furniture, Fixtures,
Equipment, and Signage | $7,800-$23,760 | As Incurred | Prior to opening | Contractors and/or
suppliers and other
third parties |
Computer System | $3,100-$14,850 | As Incurred | Prior to opening | Third-party vendors |
Inventory | $4,900-$16,000 | Deposit and periodic payments | Prior to opening | Third-party vendors |
Grand Opening
Advertising | $5,000 | As Incurred | Prior to opening | Suppliers |
Insurance and Surety
Bond | $4,360-$10,700 | Deposit and
periodic
payments | Prior to opening | Insurance company |
Professional Fees | $12,200-$24,500 | As Incurred | Pre-opening | Third Parties |
Staffing | $17,400-$119,200 | As Incurred | Pre-opening | Employees |
Additional Funds – 6
Months | $274,000-$367,000 | As Incurred | As Incurred | Employees,
suppliers, other third
parties |
Now that we’ve looked in-depth at the startup costs and financing options for a Vital Care infusion pharmacy 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 infusion pharmacy opportunity is determined.
If you have not yet discovered an infusion pharmacy opportunity in your local area, let us know. We can assist you in identifying any infusion pharmacy opportunities near your desired location.
