FDD Talk Daily (Senior Care Series): Gross Revenues and Gross Margin Percentages for Franchisor Owned ADL Caring Companions/First Step Home Care Locations

This special FDD Talk series will highlight the financial performance representations of 13 Senior Care franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of ADL Caring Companions/First Step Home Care’s Item 19 Financial Performance Representations (2012 FDD)

• As an ADL Caring Companions/First Step Home Care franchisee, you will operate a private duty home care business, under the name ADL Caring Companions or First Step Home Care, that provides non-medical home care assistance to seniors and those otherwise in need of assistance through caregivers who work under your direction.

• The total investment necessary to begin the operation of an ADL Caring Companions/First Step Home Care franchise is between $45,600 and $107,850. This includes an initial franchise fee of between $34,900 and $84,900 per franchise which must be paid to the franchisor or affiliate.

Gross Revenues and Gross Margin Percentages for Franchisor Owned Locations

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  This section represents gross revenue numbers and gross margin percentages for the two franchisor owned locations of ADL Caring Companions/First Step Home Care for selected business anniversary dates.

• Gross margin percentages are calculated by deducting direct caregiver expenses from the gross revenues then dividing by the gross revenues.

• The material representation of historic financial performance is for two franchisor owned locations in the system, one being the home office in San Antonio, TX, the other being an office location in Dallas, TX, which serves north Dallas.

• The San Antonio location has been in operation since October of 2002, having the calendar year 2003 as its first full year in business, that year being displayed in the section below.

• The Dallas location has been in operation since October of 2004, having the calendar year 2005 as its first full year in business, that year being displayed in the section below.

• Both locations serve similar demographic areas of approximately 1.5 million people.

• This representation is for the only two franchisor owned locations currently operating in the system. The only location that is franchisee owned has been in operation for less than one year.

• Both the San Antonio and Dallas offices operate in large metropolitan areas and serve over 1.5 million people.

• The franchisor owned location not included in this financial performance representation operated in Kerrville, TX, a small market of approximately 25,000 in population, from April 2007 through June 2009, and has since closed.

• The franchisee owned location in Maryland did not open its door until January 2011.

• Gross revenues and gross margins will be directly affected by many factors, such as:

• geographic location
• competition
• sales and marketing effectiveness
• your product and service pricing
• vendor prices on materials, supplies, and inventory
• labor costs
• ability to generate clients
• client loyalty
• and employment conditions in the market

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