FDD Talk Daily: Summary of Key Performance Metrics for Senior Home Care Franchises

• Over the past two weeks, we examined the financial performance representations of 12 different senior home care franchises. In addition, late last year, we analyzed the earnings claims of BrightStar Care, another top franchise in the category. Since their Item 19 disclosures are very similar, we decided to do a cross-analysis of the featured franchises instead of analyzing each one separately, to avoid repetition.

• The following are some common themes underlying most of the senior home care franchises we’ve covered:

1. The estimated initial investment to open a senior home care franchise is relatively low given the significant revenue potential of the business. Most senior care franchises can be started for less than $100,000, with the biggest expense being the initial franchise fee. BrightStar Care has the highest start-up costs, which can run as high as $168,102.

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  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.

• The total investment necessary to begin operation of an Always Best Care Senior Services franchise is $50,925 to $98,700. This includes $39,500 that must be paid to the franchisor.

• The total investment necessary to begin operation of an Assisting Hands Home Care Unit Franchise ranges from at least $66,450 to $135,000 for the first Unit Franchise purchased and $53,450 to $100,000 for each additional Unit Franchise. This includes at least $35,000 that must be paid to the franchisor.

• The total investment necessary to begin operation of a BrightStar Care franchise is $95,998 to $168,102, which includes the initial franchise fee of $47,500 for the first 200,000 – 250,000 in population in your Protected Territory, plus $200 for each additional 1,000 individuals in your Protected Territory above 250,000.

• The total investment necessary to begin operation of a ComForcare Senior Services franchise is $105,000 to $155,000 which includes the $39,500 that must be paid to ComForcare or an affiliate, excluding the provision of private duty nursing services.

• The total investment necessary to begin operations of a Comfort Keepers franchise is from $61,450 to $88,500. This includes $42,000 that must be paid to the franchisor or affiliate.

• The total investment necessary to begin operation of a FirstLight HomeCare franchise ranges from $69,530 to $95,765. This includes the $30,900 initial franchise fee that must be paid to FirstLight HomeCare Franchising, LLC.

• The total investment necessary to begin operation of a Homewatch Caregivers franchised business ranges from $73,500 to $125,000. This includes $39,000 to $50,000 that must be paid to the franchisor.

• The total investment necessary to begin operation of a HomeWell Senior Care franchise is from $53,550 to $85,400. This includes a franchise fee of $39,500 that must be paid to the franchisor or its affiliate.

• 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.

• The total investment necessary to begin operation of a Right at Home franchise ranges from $64,900 to $111,600. This includes $42,500 for the first Franchised Business plus $28,500 for each additional Franchised Business that you intend to develop under the terms of the Multiple Unit Development Agreement.

• 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.

• The total investment necessary to begin operation of a Visiting Angels franchise is $58,285 to $92,035. This includes $31,950 to $54,950 that must be paid to the franchisor or affiliate.