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 2018 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 2018 FDD

• Section IV – Number of franchised and company-owned ComForCare Home Care outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of ComForCare Home Care’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average, median, highest, second highest, lowest, and second lowest owner’s gross sales for the 143 ComForCare Home Care franchise owners (including those with multiple territories) that were open and in operation during the entire period of January 1, 2017 through December 31, 2017 and have reported a minimum of 13 months of gross sales data

• 2017 average, median, highest, second highest, lowest, and second lowest territory’s gross sales for the 174 ComForCare Home Care franchise territories that were open and in operation during the entire period of January 1, 2017 through December 31, 2017 and have reported a minimum of 13 months of gross sales data

• 2016 gross margin percentage for the 68 ComForCare Home Care franchise owners that provided information on both their 2016 Gross Sales and Cost of Goods Sold in their response to ComForCare’s internal 2017 Benchmarking Survey

Section I – Background Information

18 Things You Need to Know About the ComForCare Home Care Franchise

Rolls Out Private-Duty Nursing

1.  In early December 2018, ComForCare Home Care rolled out private-duty nursing across the franchise system. The announcement was made at the company’s annual franchise conference, which was held in Dallas. The move is part of ComForCare’s strategic plan to add programs across the health care continuum to serve older adults in a more holistic way and is the latest in a series of developments that will allow for a more continual transition of care without disrupting the client’s lifestyle at home.

2.  At the time of the announcement, ComForCare said that only about 13 percent of its locations offered private-duty nursing, and those services are being met with rapidly increasing demand in those markets and across the system. Now, with a formal program in place, ComForCare’s goal over the next three to five years is to have every office obtain the infrastructure and accreditation to offer home care and private-duty nursing to its clients.

3.  Steve Greenbaum, CEO of ComForCare and At Your Side Home Care, said, “Private-duty nursing is the future of our business. We are aligning home care with the processes and standards of certified home health agencies to elevate the level of care we can provide our clients and broaden the reach and impact of much-needed services. Our goal remains to provide our clients with high quality care and to help them live their best life possible. This is one of those bold initiatives that will not only improve that experience and those services, but will also allow our franchise locations to serve a wider client population across U.S. and Canada in the months and years ahead.”

4.  Over the past year (throughout 2018), ComForCare’s headquarters had aggressively staffed and invested in the tools to support this new program. Emily Wiechmann, RN, BSN and clinical program manager for ComForCare, joined the organization in May to overhaul the private-duty nursing program in place and make it scalable for the entire franchise system. The expectation with this program is that existing franchise locations will advance their services to include this while future franchise prospects will adopt this expanded business model from day one.

5.  Wiechmann said, “Private-duty nursing requires highly complex, hourly care for patients with very acute needs to ensure they are safe in their own home. The goal is for every office to be able to accept clients across the entire age spectrum and have the skills to take on cases that require a higher level of care due to physical restrictions, illnesses or chronic medical conditions.”

Partners with Kindred at Home

6.  At the beginning of October 2018, ComForCare Home Care signed a preferred partnership agreement with Kindred At Home – the nation’s largest provider of home health and hospice services. The collaboration is part of ComForCare’s strategic plan to grow relationships with providers across the health care industry.

7.  According to Steve Greenbaum, CEO of ComForCare, “The use of home care and home health services will allow for seniors to stay in their own home longer and reduce costs associated with avoidable hospital admissions. Our goal remains to help seniors age in place, experience high quality care and continue to live their best life possible. In addition, returning home from an acute care stay with both home care and home health services available as needed reduces readmissions significantly and prepares the senior for a better recovery overall.”

8.  As part of the care collaboration, which will roll out across all shared markets over the next year, ComForCare and Kindred At Home will collect valuable de-identified health information and share those care outcomes with professionals and industry leaders in order to provide insights and learnings that may improve delivery overall.

9.  Derek Nordman, chief clinical officer of Kindred at Home, said, “We look forward to working with ComForCare in collaboration with physicians and health care specialists to care for patients in their homes across the country. The lower cost collaborative care model will be a benefit to local health care systems, accountable care organizations and the patient at the center of every care episode.”

Celebrates 5th Anniversary of DementiaWise Program

10.  In September 2018, which was World Alzheimer’s Month, ComForCare Home Care celebrated the fifth anniversary of its DementiaWise program. This care enhancement program was created to care for people with all types of dementia including Alzheimer’s disease, vascular dementia, Lewy body dementia, and frontotemporal dementia, and consists of a proprietary curriculum that keeps clients calm, engaged, happy and functioning at their best.

11.  ComForCare’s DementiaWise program meets the Alzheimer’s Association Dementia Care Practice Recommendations in the areas of Alzheimer’s and Dementia Disease Awareness, Strategies for Caring for the Person with Dementia, Communications and Understanding Behavior, Social Needs and Activity, and Eating Well.

12.  Steve Greenbaum, CEO of ComForCare, said, “World Alzheimer’s Month is dedicated to raising awareness and challenging the stigma that surrounds dementia, something that ComForCare is doing everyday through DementiaWise. We launched this program five years ago, because we saw a need for our clients to feel supported while living with this condition and we are continuously looking for ways to improve the program and create more opportunities that allow our clients to age safely at home.”

13.  Under the DementiaWise program, ComForCare’s trained caregivers develop understanding and skills in the most effective care techniques. One of the programs under DementiaWise is Joyful Memories – a music program that brings memories to life through music recognition.

14.  Joyful Memories can be done in a group setting where seniors and their loved ones can gather together to sing and encourage movement through dance. It can also be a one-on-one meaningful activity where the ComForCare team builds a customized playlist based on a client’s life experiences and memories.

15.  Emily Wiechmann, RN, BSN, clinical program manager for ComForCare, added, “Our DementiaWise program works because it focuses on supporting remaining abilities instead of lost abilities. We also put a strong emphasis on personalized meaningful activities to keep clients engaged, encouraging purpose and reconnecting clients with the world around them, which supports our mission to live your best life possible.”

Company History

16.  ComForCare Home Care was founded in 1996 by Mark Armstrong in Bloomfield Hills, Michigan. The company provides in-home care and specializes in offering proprietary programs for people with Alzheimer’s disease and other forms of dementia. In 2001, ComForCare Home Care started franchising and expanded its presence across the United States.

17.  In 2017, ComForCare was acquired by The Riverside Company, a New York-based private equity firm with more than $5 billion in assets under management. At the time of the acquisition, ComForCare was Riverside’s first home care franchisor. For a while after the sale, founder Mark Armstrong stayed on as CEO before being replaced in early 2018 by Steve Greenbaum. Armstrong still holds a significant stake in ComForCare Home Care and is chairman of the board.

Entrepreneur’s Franchise 500

18.  ComForCare Home Care did not rank on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of ComForCare Home Care franchise costs, based on Item 7 of the company’s 2018 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 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  183
• Outlets at the End of the Year:  188
• Net Change:  +5

2016

• Outlets at the Start of the Year:  188
• Outlets at the End of the Year:  194
• Net Change:  +6

2017

• Outlets at the Start of the Year:  194
• Outlets at the End of the Year:  190
• Net Change:  -4

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 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.

• The financial performance information included in Parts 1 and 2 below reflect average gross sales of Tier 1 ComForCare franchisees that: (1) were open and in operation during the entire period of January 1, 2017 through December 31, 2017 (the “Measurement Period”) and (2) have reported a minimum of 13 months of gross sales data (the “Included Franchisees”).

• Tier 1 ComForCare Franchises are those franchises that have approximately 25,000 to 35,000 people over the age of 65 (“Senior/s”).

• ComForCare considers a franchisee to be “open and in operation” once they have completed their training and all assigned door opening tasks, and are able to provide, at least, unlicensed homemaker/companionship services within their exclusive area.

• This financial performance representation does not include: (1) data for territories purchased and not yet opened by franchise owners, and (2) data for territories held by owners for resale that have been idled pending location of a buyer.

• In some instances, the Included Franchisees have purchased more than one franchise territory and report franchise sales and royalty information as a single unit for all territories they own and/or operate out of one central office.

• In addition, at the time of this disclosure, (1) ComForCare has one franchisee located within a Tier 2 territory (those territories with more than 15,000 and less than 25,000 Seniors); however, it has not been open for at least 13 months; and (2) ComForCare has not sold any franchises under its Conversion Program.

• The financial performance information presented below has been extracted from royalty reports provided to ComForCare by the franchisees.

• ComForCare has not audited this information, nor has it independently verified this information.

• In addition, in conjunction with the services provided to seniors, the population size, density of seniors, and number of people over the age of 65 in the exclusive areas for the franchise owners represented in Parts 1 and 2 below may not be similar to, or representative of, the exclusive area you may purchase.

Part 1 – Gross Sales Information by Franchise Owner (Including Those With Multiple Territories) Operating at Least One Full Year

Franchisee Owner’s Time in Business: 158 Months and Greater