In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the ComForCare Home Care franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a ComForCare Home Care franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a ComForCare Home Care franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of ComForCare Home Care’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, median, highest, second highest, lowest, and second lowest owner’s gross sales for the 137 ComForCare Home Care franchise owners (including those with multiple territories) that were open and in operation during the entire period of January 1, 2016 through December 31, 2016 and have reported a minimum of 13 months of gross sales data
- 2016 average, median, highest, second highest, lowest, and second lowest territory’s gross sales for the 170 ComForCare Home Care franchise territories that were open and in operation during the entire period of January 1, 2016 through December 31, 2016 and have reported a minimum of 13 months of gross sales data
- 2015 gross margin percentage for the 40 ComForCare Home Care franchise owners that provided information on both their 2015 Gross Sales and Cost of Goods Sold in their response to ComForCare’s internal 2016 Benchmarking Survey
Section I – Background Information
13 Things You Need to Know About the ComForCare Home Care Franchise
Acquired by Private Equity Firm Riverside
1. At the end of July 2017, ComForCare Home Care was acquired by The Riverside Company, a New York-based private equity firm with more than $5 billion in assets under management. Steve Rice, a principal with Riverside, said, “This is our first home care franchisor, but franchise investment is a specialization of Riverside. We’ve played in home care through software acquisitions, and this is our first home care provider investment, but it’s a market we’ve been following and chasing for a number of years. ComForCare was the first to hit all our criteria, and when we found it, we absolutely sprinted.”
2. Rice added, “Franchisors are best positioned to capture growth in this market. This is a very local marketing business. That’s why the franchise model works so well, with local owners knocking on doors.”
3. At the time of the acquisition, Riverside said that Mark Armstrong, CEO and founder of ComForCare, would stay on to lead the company and maintain a “significant stake.” However, at the start of 2018, Riverside appointed a new CEO and Armstrong has transitioned to chairman of the board.
4. ComForCare has about 200 franchise locations across the United States as well as in Canada and the United Kingdom. Rice said that this was one of the factors that attracted Riverside to the company. He added, “It’s a very healthy system because they’ve been very conscious of their growth. This is not [a company] that just finds someone to sell every territory to, they find people committed to their business practices. This has led to strong organic growth within the system.”
5. Riverside intends to support ComForCare’s growth in several ways. One is by beefing up the marketing side with an eye toward more online lead generation through a robust online presence. Riverside will also be investing more resources to put toward hiring and training initiatives.
Appoints New CEO
6. At the beginning of 2018, ComForCare Home Care named Steve Greenbaum as its new Chief Executive Officer. Greenbaum will serve as co-CEO with ComForCare and At Your Side Home Care founder Mark Armstrong during a brief transition period, after which Armstrong will become chairman of the board.
7. Before coming to ComForCare, Greenbaum was the founder and former CEO of PostNet, a 660-unit global printing and marketing services franchise. He is also a Certified Franchise Executive, served as chairman of the International Franchise Association (IFA) in 2008, and was honored with the IFA’s Entrepreneur of the Year Award in 2003.
8. Armstrong said, “Steve brings superb credentials, with the skills to grow our franchise system and bring ComForCare’s high standards for compassionate in-home care to more families and communities. As ComForCare’s chairman of the board, I will continue to support the company’s mission, its franchisees and our growth within the industry.”
9. In early February 2018, ComForCare Home Care announced that it had acquired CarePatrol, the largest senior placement franchise in the United States. CarePatrol has more than 150 offices in 40 states, with local senior care advisors who work with families free of charge to find quality, top-rated assisted living, independent living, memory care, nursing homes, and in-home care. The senior advisors meet with families in person to assess a client’s care level needs, financial needs, and general preferred locations, before recommending the best and safest care options.
10. ComForCare’s acquisition of CarePatrol is a first step in realizing the company’s vision to rapidly expand its footprint in the older adult care space through strategic partnerships, organic growth, and investments. ComForCare CEO Steve Greenbaum said, “In addition to expanding our service offering and portfolio, our acquisition of CarePatrol illustrates our objective of finding new avenues to carry out our mission to help people live their best life possible. As the largest senior placement franchise in America, CarePatrol excels at its unprecedented and objective approach to helping families find the right care solutions for their loved ones.”
11. ComForCare Home Care was founded in 1996 by Mark Armstrong in Bloomfield Hills, Michigan. Its main focus is helping seniors live comfortably and independently in their own home. The company offers non-medical and medical in-home care services such as grooming assistance, medication reminders, transportation, light housekeeping, meal preparation, and companionship care.
12. ComForCare started franchising in 2001 and has grown to over 200 locations across the United States, Canada, and United Kingdom. The brand is currently seeking franchisees throughout the U.S., Asia, Canada, Eastern Europe, and Western Europe.
Entrepreneur’s Franchise 500
13. ComForCare Home Care has ranked on Entrepreneur’s annual Franchise 500 list every year for the past 10 years. ComForCare’s highest rank was No. 153 in 2017, while its lowest rank was No. 346 in 2018.
Section II – Estimated Costs
- Please click here for detailed estimates of ComForCare Home Care franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on ComForCare Home Care’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- This Item 19 contains historical financial performance data as provided by certain ComForCare franchisees. The representations made in this Item 19 are based upon the franchise system’s outlets existing for the period of time indicated below unless otherwise specifically excluded, as discussed below.