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 Senior Helpers’ Item 19 Financial Performance Representations (2012 FDD)
- The franchisee will operate in-home care agencies that provide various in-home non-medical and personal assistance services, primarily for elderly individuals, including care and companionship services, bathing, dressing, and grooming, light housekeeping, meal planning and preparation, running errands, medication reminders, and Alzheimer’s and dementia care (the “Senior Helpers Home Care Business”).
- The estimated total initial investment necessary to begin operation of a Senior Helpers Home Care Business ranges from $74,800 to $98,800. This includes an initial fee of $39,500 that you must pay to the franchisor.
2011 Gross Revenues of Senior Helpers Franchisees
- The information below contains data for franchisees that have been operating for at least 12 months as of December 31, 2011.
- The franchisee information is organized into five categories:
- (a) franchisees that have been operating for 5 years or more as of December 31, 2011,
- (b) franchisees that have been operating between 48 and 59 months as of December 31, 2011,
- (c) franchisees that have been operating between 36 and 47 months as of December 31, 2011,
- (d) franchisees that have been operating between 24 and 35 months as of December 31, 2011, and
- (e) franchisees that have been operating between 12 and 23 months as of December 31, 2011.
- The franchisor has divided the franchisee data as noted because they have found that length of operation has a bearing on the results of a Senior Helpers Home Care Business due to the recurring nature of the clients and revenues from the business.
- “Gross Revenue” represents the actual gross revenue for each franchisee in the sample for the period January 1, 2011 to December 31, 2011, as reported by the franchisees. Included in gross revenue are all revenues from the offer and sales of all services (and products) to customers and clients of the franchisees.
- The gross revenue figures are compiled by using sales that are reported to the franchisor by franchisees. The franchisor has not audited or verified the reports, nor have franchisees confirmed that their reports are prepared in accordance with generally accepted accounting principles.
- Approximately 75% of the Franchised Businesses are single-territory businesses, owned and operated by franchisees that do not have multiple territories. While the company has some multiple-territory franchisees, it has found that many of these multiple-territory franchisees devote considerably more energy and resources toward the first Franchised Business.
- Also, there may be certain costs, and/or efficiencies that are reflected in, or may impact, the results of multiple-territory franchisees.
- Therefore, to avoid skewing of data and/or mischaracterizing the time period in which a franchisee has operated a Franchised Business as part of a multiple-territory franchise, the data below reflects the results of all of the units that franchisees own under one territory.
- This financial performance representation does not include any estimate of, or specific or historic data regarding, costs, expenses, or debts that franchisees have incurred, or may incur in the future.