Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Average Clients Per Market and Average Weekly Revenue Per Client for LivHOME Businesses

by Franchise Chatter on February 18, 2013

in Franchise Earnings, Senior Home Care Franchises



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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 LivHOME’s Item 19 Financial Performance Representations (2012 FDD)

  • The franchise is to develop and operate a business under the “LivHOME” name that provides professionally led at-home care and related services to seniors.
  • The total investment necessary to begin operation of a LivHOME business franchise is $96,500 to $150,000. This includes $20,750 to $42,750 that must be paid to the franchisor or affiliate. You might pay more if you sign a Development Rights Agreement or Asset Purchase Agreement.
  • As of December 31, 2011, excluding LHI’s LivHOME Businesses in California, there were 19 LivHOME Businesses in operation (using the concept of one LivHOME Business representing one Territory and the company’s guidelines for establishing Territories under Franchise Agreements).
  • LHI operated 14 of those LivHOME Businesses and franchisees operated the 5 (3 of which LHI sold to a franchisee in November 2011).
  • The company excluded from this sample 2 of the franchised LivHOME Businesses because they did not operate for a full year as of December 31, 2011.
  • These financial performance representations list the Clients Per Location (Low), Clients Per Location (High), Clients Per Location (Average), and Average Weekly Revenue Per Client for:
  • (a) those 14 LivHOME Businesses that LHI operated for a full year as of December 31, 2011 and
  • (b) those 3 LivHOME Businesses that a franchisee operated as of December 31, 2011 and that operated under the LivHOME name for all of 2011 (the “Reporting Businesses”).
  • These financial performance representations cover the actual operating results of the Reporting Businesses during the period from January 1, 2011 through December 31, 2011.
  • The franchisor grouped the Reporting Businesses based on the geographic markets in which they operate and listed the number of Territories/LivHOME Businesses that each group contains.
  • LivHOME Businesses in each of these markets operate as one organization with coordinated marketing, operations, and reporting. In many cases, there is only one office to service the entire market, but sometimes there are smaller, “satellite” offices in a market that allow caregivers to have an office location closer to some clients.
  • The markets are in Atlanta, Georgia; Skokie, Illinois (a nearby suburb of Chicago); Montgomery County, Maryland (covering Rockville, Bethesda, and other suburbs of Baltimore); Boston, Massachusetts; Houston, Texas; and Arlington, Virginia.
  • The Years in Operation for each market is the total number of full years that LHI or a franchisee has operated a business in that market under the LivHOME name and following System Standards.
  • These figures are based on LHI’s internal unaudited financial information. These figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue figures to obtain your net income or profit.


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