Investment and Financials
Initial Franchise Fee
Royalty
Initial Investment Range
Average Unit Volume
$49,500*
*via Item 5 of our FDD, discounts available for
Veterans, Existing Franchisees, and those converting and existing business.
5%*
*via Item 6 of our FDD, Royalty is on gross revenue.
$267,500 - $698,750*
*via Item 7 of our FDD, see below for more details.
$1,113,891*
*via Item 19 of our FDD, see below for more details. Average Unit Volume (AUV) for franchised units billing for all 52 weeks in 2024.
Our general financial requirements to open are at least $75,000 in liquid capital, $350,000 in Net Worth, and a minimum credit score of 680. Essential Speech and ABA Therapy Franchising does not offer any direct financing options, but we work with partners to assist in any of your financing needs.
Information from our Franchise Disclosure Document
Initial Investment Range
Per Item 7 of our FDD
Type of Expenditure | Low Amount | High Amount |
|---|---|---|
Initial Franchise Fee | $49,500 | $49,500 |
Billing Onboarding Services Fee | $1,000 | $1,000 |
Travel to Training Expenses | $0 | $6,000 |
Leasehold Improvements | $0 | $100,000 |
Professional Photography Fee | $500 | $1,000 |
EMR Services | $1,000 | $3,750 |
Furniture and Fixtures | $20,000 | $100,000 |
Signage | $2,000 | $15,000 |
Technology | $15,000 | $30,000 |
Rent (3 months) | $15,000 | $55,000 |
Security Deposit | $10,000 | $25,000 |
Utilities | $5,000 | $10,000 |
Office Supplies | $1,000 | $3,000 |
Grand Opening Advertising Expenses | $5,500 | $5,500 |
Pre-Opening Advertising Expenditure | $5,000 | $15,000 |
Local Advertising Requirement | $300 | $300 |
Insurance | $3,000 | $5,000 |
Permits and Licenses | $2,500 | $5,000 |
Professional Fees | $1,500 | $4,000 |
Therapy Materials | $5,000 | $15,000 |
Contracting and Credentialing Services | $5,000 | $10,000 |
Additional Funds (6 months) | $120,000 | $240,000 |
TOTAL | $267,500 | $698,750 |
The figures in this table are estimates. We do not offer direct or indirect financing to you for any items. The availability of financing through third-party lenders, if any, will depend on factors such as the lending policies of such financial institutions, the collateral you may have, your creditworthiness, and the general availability of financing. Unless otherwise noted above, all of the expenditures listed in the Item 7 Chart above are typically non-refundable.​
Understanding the ABA Therapy Revenue Cycle
It is important to understand the revenue cycle of our business versus other franchises in different industries, as working through medical insurance presents a few key differences!
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First, it can take between 7 and 10 weeks to intake a client, including collecting information, having an assessment, and getting insurance authorization for a treatment plan.
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Then, there is a difference between services rendered and reimbursement. It can take between 30 and 45 days to receive payment.
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Now, the initial process of getting started also has a lead time. It can take between 120 and 180 days to become credentialed (in-network) with insurance providers, and a potential 8 to 16 weeks for your first check from insurance.
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Knowing these things ahead of time, we structure our onboarding to limit overhead expenses until necessary, in addition to recommending between 3 and 4 months of working capital. In that way, you can feel confident moving through the initial pre-opening stages and are setup for success!
