American Family Care's estimated initial investment for one new U.S. Center is $948,250 to $1,514,000. That is the 2026 Franchise Disclosure Document range for a newly developed Center, not the franchise fee alone and not a conversion estimate.
The Item 7 total includes a $60,000 Initial Franchise Fee and $200,000 to $500,000 of Additional Funds for the first three months after opening. It excludes finance charges, interest, debt service, and any unestimated cost of buying real estate. Source: 2026 FDD, Item 7, pages 15-19.
Data basis: AFC Franchising, LLC; 2026 U.S. Franchise Disclosure Document issued April 29, 2026; new Center, Conversion Center, and Area Development Agreement paths; Items 5, 6, 7, 8, 10, 11, and 17; information checked July 20, 2026. A matching public copy of the 2026 FDD was not located on an AFC-controlled domain, so FDD Item and page citations are presented as unlinked text. The official American Family Care franchise website is linked only for current supplemental information.
Which American Family Care cost figures matter first?
The total investment, opening reserve, and recurring fee bases answer different questions. The 2026 FDD treats Additional Funds as part of Item 7, while the Royalty Fee, Marketing Fee, Local Advertising Requirement, and Technology Fee continue after opening.
What is included in the $948,250 to $1,514,000 range?
The new-Center range combines the franchise payment, premises development, medical and office assets, professional and opening costs, and a three-month operating reserve. AFC's 2026 FDD estimates that $225,000 to $306,000 of the total is paid to AFC Franchising, LLC or its affiliates. The balance is generally paid to landlords, utilities, employees, and third-party suppliers. Source: 2026 FDD cover and Item 7, pages 15-19.
Premises, construction, and operating assets
| Item 7 expenditure | 2026 range | Payment timing | FDD page |
|---|---|---|---|
| Lease, Utility and Security Deposits | $6,000-$10,000 | When the lease is signed or utility accounts are opened | 15-17 |
| Medical Equipment & Supplies - AFC affiliates | $80,000-$145,000 | As incurred; lump-sum purchases | 15, 17 |
| Medical Equipment & Supplies - third parties | $30,000 | As incurred | 15 |
| Construction Management Services Fee | $50,000 | At Franchise Agreement signing if AFC elects to provide the service | 15, 17 |
| Construction | $419,750-$472,500 | As ordered and incurred | 15, 17 |
| Furniture, Fixtures, and Appliances | $10,000-$17,000 | When ordered | 15 |
| Office Equipment & Computer System | $12,000-$40,000 | When ordered | 15, 17 |
| Signage | $8,000-$30,000 | As incurred | 16 |
The construction estimate assumes a 1,750- to 2,000-square-foot Center with four to five exam rooms and a "vanilla box" layout. The FDD uses approximately $210 per square foot for comprehensive design, construction management, and build-out. Buying the property is not included and is described as substantially more expensive and not estimable. AFC's official market and real estate information provides supplemental site context, but the FDD controls the disclosed investment range.
Opening, professional, and working-capital costs
| Item 7 expenditure | 2026 range | What the amount covers | FDD page |
|---|---|---|---|
| Travel and Living Expenses While Training | $0-$3,000 | Travel, food, lodging, wages, and related trainee costs if training is in person | 15, 17 |
| Grand Opening Spend Requirement | $35,000-$50,000 | $35,000 required; up to $50,000 with the optional social-media program | 15 |
| Business License & Permits | $500-$2,500 | Center business licenses and permits; excludes licensing costs incurred by the professional entity | 15, 17 |
| Legal/Professional Fees | $15,000-$25,000 | Professional work incurred before opening | 16 |
| Insurance | $14,500-$21,000 | Initial premiums for required coverages | 16, 18 |
| Recruitment | $3,000-$50,000 | Staff recruiting; high end includes use of a recruiter | 16, 18 |
| Credentialing | $4,500-$7,000 | Required designated or approved credentialing vendor | 16, 18 |
| Additional Funds - three months | $200,000-$500,000 | Operating expenses after opening, net of estimated operating revenue | 16, 18 |
| Total Estimated Initial Investment | $948,250-$1,514,000 | Official new-Center total | 16 |
Each floating bar begins at the disclosed low amount and ends at the disclosed high amount. The scale runs from $0 to $500,000.
Interpretation: Construction has the highest minimum, while Additional Funds create the widest low-to-high spread. Official figures; 2026 FDD, Item 7, pages 15-18.
The low end is not a promise that every market can be developed for $948,250. Rent, property condition, construction scope, recruitment, insurance, equipment choices, and the operating reserve can move independently within or beyond the assumptions described in the FDD. The Item 7 total also does not price the acquisition of real estate.
When is the money paid?
The capital is not paid in one installment. The 2026 FDD ties major payments to the Franchise Agreement, any Area Development Agreement, the approved lease, training, ordering and construction, the opening date, and the first three months of operation.
The FTC Franchise Rule requires delivery of the FDD at least 14 calendar days before signing a binding agreement or paying AFC Franchising, LLC or an affiliate. See the FTC Consumer's Guide to Buying a Franchise.
Pay the $60,000 Initial Franchise Fee. If AFC elects to provide Construction Management Services for one of the first two Centers, the $50,000 fee is also due at signing. Item 5, pages 8-10.
Pay the nonrefundable development fee in a lump sum. The typical minimum shown in Item 7 is $47,500 for two additional franchises beyond the initial Center. Item 7, page 19.
Lease, utility, and security deposits are paid as accounts are opened. Within 10 days after signing the approved lease, pay the $35,000 Grand Opening Spend Requirement; the amount can reach $50,000 with the optional social-media program. Item 5, pages 9-10.
Construction, medical equipment, supplies, furniture, office systems, signage, licenses, credentialing, recruitment, professional fees, and training travel are paid as ordered or incurred. AFC states that the usual period from signing to opening is six to 12 months. Item 7, pages 15-18; Item 11, pages 23-25.
Insurance is obtained before opening. The $200,000 to $500,000 Additional Funds estimate covers the first three months after opening and already sits inside the Item 7 total. Weekly, monthly, and event-triggered fees then apply under Item 6.
Which fees continue after an American Family Care Center opens?
The principal recurring charges are the Royalty Fee, Marketing Fee, Local Advertising Requirement, and Technology Fee. AFC uses the defined term Net Payments, not a generic annual-sales estimate, as the basis for its percentage fees. Source: 2026 FDD, Item 6, pages 10-15.
| Fee | Amount or basis | Timing | Important condition |
|---|---|---|---|
| Royalty Fee | 6% of Net Payments | Weekly, normally Wednesday | If aggregate royalties for an applicable consecutive four-week period are below $1,250, the difference is due within five days after the period. |
| Marketing Fee | Currently 2% of Net Payments | Weekly with royalty | May change on notice, subject to the Marketing Expenditure Cap. |
| Local Advertising Requirement | At least $2,000 monthly | Starts three months after grand opening | If the required amount is not spent, AFC may require payment of the shortfall to the Marketing Fund. |
| Marketing Expenditure Cap | 5% of Net Payments | Applied to Required Marketing | Covers the Marketing Fee plus Local Advertising Requirement; the franchisee must provide written notice when the cap is exceeded. |
| Technology Fee | Currently $767 monthly | Monthly | Subject to increase by an amount not exceeding 1% of the Center's Net Payments. |
| Conference Registration | $1,000 per person; two attendees | ACH about 90 days before conference | Nonrefundable and payable for two attendees per Center even if they do not attend. |
AFC's official investment and costs page confirms a 6% ongoing royalty, but its public wording uses "gross sales." The 2026 FDD's governing definition is the more specific Net Payments definition in Item 6, page 15.
Which charges arise only when a condition occurs?
Currently $1,500 per Center Administrator and $750 per Operating Principal or other attendee; a trainer sent to the Center adds $1,500 per trainer per day plus travel and living expenses.
Actual examination or remediation costs may be charged when required reports are not furnished or an audit finds Net Payments understated by 5% or more, or when noncompliance requires follow-up work.
Past-due amounts accrue the lesser of 1.5% per month or the highest lawful commercial contract rate. If AFC procures required insurance, the franchisee reimburses premiums and expenses plus a 10% administrative fee.
Item 6 also permits actual-cost reimbursement for data extraction, ASP or managed services, step-in operations, legal enforcement, and covered third-party claims.
Lost Revenue Damages may become due within 15 days after specified termination events, using the royalty-and-marketing formula disclosed in Item 6. No annual dollar estimate should be inferred without the contract inputs.
How do area development and conversion obligations change the cost?
American Family Care has three cost paths in the 2026 FDD: a new Center under a Franchise Agreement, additional Centers under an Area Development Agreement, and a qualified existing business converted into a Conversion Center. They do not share one interchangeable investment range.
The typical $47,500 Area Development Fee covers commitments for two Additional Franchises beyond the initial Center. It is nonrefundable, paid when the Area Development Agreement is signed, and credited in the disclosed increments toward the Initial Franchise Fee for each applicable Additional Franchise.
Initial Franchise Fee under the first Franchise Agreement.
First Additional Franchise is $50,000; each subsequent Additional Franchise is $45,000, subject to the Area Development Agreement terms.
These are per-location development-fee increments, not the full cost to open each Center.
Interpretation: The typical two-additional-Center commitment produces the $47,500 development fee shown in Item 7. More locations increase the commitment under the schedule above. Official figures; 2026 FDD, Item 5, page 10 and Item 7, page 19. AFC also describes multi-unit opportunities on its franchise site.
AFC's public cost pages state a $144,500 to $480,500 conversion investment and a $45,000 conversion fee. The 2026 FDD does not publish a separate Item 7 total for Conversion Centers; it says their investment is expected to be lower because some expenses may not apply. Item 5 also says one Conversion Center keeps the $60,000 Initial Franchise Fee, while $45,000 per Center applies when two Conversion Agreements are signed concurrently. Use the current FDD and proposed Conversion Addendum to resolve the amount for a specific transaction, rather than applying the website's $45,000 figure universally.
The FDD also discloses a potential credit of up to $30,000 per Conversion Center against future royalty payments, with the exact credit determined after AFC assesses the conversion scope and expected spending. That credit does not reduce every opening-cost category and is not a cash payment at signing. Source: 2026 FDD, Item 5, page 9. The public conversion statement appears on AFC's franchise investment and conversion page.
How much liquid capital and net worth does AFC require?
AFC's official website consistently displays a $1,200,000 net-worth threshold, but it does not present one consistent liquid-capital number. The main investment page and multiple qualification forms state $500,000 of liquid cash or liquid assets, while another official investment page states $750,000. These are screening qualifications, not substitutes for the $948,250 to $1,514,000 Item 7 investment range.
Net worth measures assets minus liabilities. It is not the same as cash available to fund development.
The main AFC cost page states $500,000, while the alternate official investment page states $750,000. AFC's inquiry forms also display $500,000.
Item 10 states that AFC Franchising, LLC and its affiliates do not finance the initial fee, site acquisition, construction, remodeling, fixtures, inventory, or supplies and do not guarantee notes, leases, or obligations. The website says applicants may seek third-party lenders.
Obtain written confirmation of the current liquid-capital threshold before treating either website figure as the active qualification. Also separate lender approval from franchisor approval: a third-party financing relationship does not guarantee credit, and Item 7 excludes finance charges, interest, and debt service.
Which renewal, transfer, technology, and refurbishment costs can arise later?
The original opening budget is not the full lifetime cost contract. Item 6 fixes or formulas several event-triggered fees, while Items 11 and 17 permit future technology upgrades and physical modifications whose final cost is not capped by the initial investment table.
At renewal, the fee is $5,000 or 10% of the then-current Initial Franchise Fee, whichever is higher. Item 17 also requires compliance, training as designated, a current agreement, continued premises rights, and modifications needed to meet then-current System Standards.
The higher of $10,000 or 10% of the then-current Initial Franchise Fee when AFC or its agent does not facilitate the transfer; the higher of $25,000 or 10% when AFC or its agent facilitates it. Certain death, disability, and wholly owned entity transfers are waived under the disclosed conditions.
$25,000 at transfer.
Item 11 estimates possible upgrading and maintenance costs at approximately $2,400 per year, but states there is no contractual limit on the frequency or cost of required upgrades.
Renewal and transfer can require upgrades or refurbishment to then-current System Standards. The FDD does not provide a universal dollar allowance for that future work.
What should a prospective franchisee verify before committing capital?
The most important distinction is between the new-Center Item 7 total, the cash and net-worth screening thresholds, and the fees that continue or arise conditionally after opening. The following checks address the material unresolved variables in the 2026 disclosures.
Determine whether the transaction is a new Center, one Conversion Center, two concurrent conversions, an existing-center acquisition, or an Area Development Agreement. Do not apply one format's fee reduction to another.
Compare the proposed premises with the FDD's 1,750- to 2,000-square-foot vanilla-box assumption, including exam rooms, utilities, HVAC, plumbing, signage, and property condition.
Confirm the Initial Franchise Fee, Construction Management Services Fee, affiliate medical equipment, Grand Opening Spend Requirement, technology charges, and any development-fee credits.
Additional Funds are already included in Item 7 and cover specified operating expenses net of estimated operating revenue. Verify which owner compensation, professional-entity costs, and local obligations are outside the disclosed assumptions.
Ask AFC to reconcile the public conversion figures and the $500,000 versus $750,000 liquid-capital statements with the FDD and transaction documents being offered.
The FTC Franchise Rule requires a disclosure document with 23 Items. AFC's official ownership process also identifies FDD review as a distinct step before the Franchise Agreement and franchise-fee payment.
For one newly developed American Family Care Center, the verified 2026 FDD range is $948,250 to $1,514,000. Construction and the three-month Additional Funds reserve drive most of the disclosed variation. A Conversion Center or multi-unit commitment changes the fee contract, but the FDD does not provide one universal conversion total. After opening, 6% Royalty, current 2% Marketing, at least $2,000 monthly Local Advertising, the current $767 monthly Technology Fee, and conditional charges remain separate obligations.
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