In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Synergy HomeCare franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Synergy HomeCare franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Synergy HomeCare franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Synergy HomeCare outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Synergy HomeCare’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, maximum, and minimum gross sales per business for the 89 multi-unit franchised Synergy HomeCare businesses (operating 254 franchised units) that have been in operation for 1 year or more as of December 31, 2020

• 2020 average, median, maximum, and minimum gross sales per business for the 48 single-unit franchised Synergy HomeCare businesses that have been in operation for 1 year or more as of December 31, 2020

Section I – Background Information

12 Things You Need to Know About the Synergy HomeCare Franchise

Ends 2020 Up 35% in Sold Territories

1.  At the end of January 2021, Synergy HomeCare stated that it continued on its strong growth trajectory in 2020 by selling 38 territories, including multiple sales in New Jersey, North Carolina, Tennessee, Texas, and Virginia. Synergy HomeCare sold 35% more territories in 2020 over 2019. The company was recently named one of the fastest growing healthcare franchises in the nation by Franchise Times. Synergy HomeCare also saw the number of online consumer inquiries increase by more than 30% in 2020 over 2019.

2.  Charlie Young, CEO of Synergy HomeCare, said, “We have made a concerted effort to grow our market presence. Obviously as baby boomers age with an increased desire to live at home and remain independent, the need for our services has and will grow even further. It has been interesting to see that while COVID-19 has slowed the overall economy, it has exacerbated the need for in-home care. This has brought increased awareness to the sector and has allowed us to develop a strong pipeline of high-quality candidates who bring a variety of different skill sets. Each week we engage with more and more potential owners.”

3.  Synergy HomeCare also had several notable openings in 2020. Synergy HomeCare of Rutherford County, southeast of Nashville, Tennessee, opened in December, led by Dan and Kathy Root. Dan Root said, “I spent the bulk of my career in organizational transformation and strategy assessment and my wife Kathy has a background as a registered nurse and as a healthcare accounting consultant, so we were looking for an opportunity to combine those skills. We have personal experience as caregivers and recognized that the need for professional services in our region is growing. We believe that by building a culture focused on optimizing our employee experience we will fuel client satisfaction and growth.” Root pointed out that the company’s caregiver recruitment is focused on experienced healthcare professionals and students in appropriate majors at nearby Middle Tennessee State University.

4.  Synergy HomeCare also increased its California presence with the 2020 launches of four affiliated companies in the Golden State. There are now 15 franchisees operating in California including companies in Huntington Beach, San Jose, Carlsbad, and San Marcos, where Jeb and Martha Butler opened Synergy HomeCare of North County.

5.  Jeb Butler said, “I had a long career in orthopedic surgical supply sales and recognized that in-home care was a growth industry where my sales background would be beneficial. Martha had cared for her late dad and her mom is now in assisted living so we have seen firsthand the value a company like ours can bring to the client and their family. Launching a business during COVID has been hard but the Synergy team has been incredible in helping us understand the business, allowing us to network and develop a referral base, as well as set up our systems and operations and support our marketing efforts.” Butler has focused recruiting efforts on nearby Camp Pendleton to augment his caregiver roster. He has had success hiring military spouses, many of whom come from backgrounds where caregiving is a part of their culture.

6.  Tom Nelson, another recent franchisee in California, is also optimistic about his newest business endeavor with Synergy HomeCare of Campbell-Los Gatos, which serves the Greater San Jose area. Nelson said, “After a rewarding career leveraging my background in national corporate wellness, adaptive physical education for people with disabilities, and referral-based medical fitness centers, I saw an incredible opportunity to apply my experience in a field with increasing demand. We have a wide-open market with room for expansion that will afford us the privilege of serving a growing population of seniors with the personalized care they need to maintain their quality of life.”

Partners with Compassus to Expand Network of Home Health Care

7.  Near the end of January 2021, Synergy HomeCare announced a partnership with Compassus in order to promote a continuum of care appropriate to various stages of senior care. The relationship allows professionals in both organizations to coordinate care and provide clients with a trusted resource across the home care spectrum. While Synergy HomeCare and its nearly 370 franchise locations specialize in companion and personal care, Compassus provides skilled home health, infusion therapy, palliative, and hospice care. Based in Nashville, Tennessee, Compassus serves more than 40,000 patients annually.

8.  Charlie Young, CEO of Synergy HomeCare, said, “Our collaborative nature constantly drives us to search for more ways in which we can further support our clients’ home care needs. We were pleased to discover that Compassus shares a similar organizational culture and ambition as the Synergy HomeCare brand. Partnering with Compassus will allow us to become a resource for clients who are in need of services that we do not provide.”

9.  Jim Deal, CEO of Compassus, added, “We are very pleased to be able to expand our level of service to our patients with the help of Synergy HomeCare. We find our patients, in many cases, require assistance with everyday activities, and we were delighted to find a partner at the national level that overlaps so well with our programs. With the assistance of local Synergy HomeCare companies, we can assure our patients receive the continuity of care they deserve.”

Company History

10.  Synergy HomeCare was founded in 2001 by Peter Tourian in Gilbert, Arizona. Tourian had previously founded Synergy Staffing in the 1990s, which was a medical staffing company. Through his experience with Synergy Staffing, Tourian saw that there was a need for non-medical home care. Standards were inconsistent, the marketplace was heavily fragmented, yet the need for it was about to explode as tidal waves of baby boomers become senior citizens. Tourian developed the idea for Synergy HomeCare to offer dependable, affordable, and professional in-home care services.

11.  Tourian spent years developing Synergy HomeCare and tested the systems over and over again until he felt ready to start franchising the concept. In 2005, Tourian opened the first Synergy HomeCare franchise and within a few years the company grew to 100 locations in more than 35 states. More recently, in 2018, Synergy HomeCare was acquired by NexPhase Capital, LP.

Entrepreneur’s Franchise 500

12.  Synergy HomeCare did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Synergy HomeCare franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Synergy HomeCare’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  312
• Outlets at the End of the Year:  317
• Net Change:  +5

2019

• Outlets at the Start of the Year:  317
• Outlets at the End of the Year:  336
• Net Change:  +19

2020

• Outlets at the Start of the Year:  336
• Outlets at the End of the Year:  364
• Net Change:  +28

Company-Owned

2018

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

2019

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

2020

• 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, 2021 FDD) and Analysis

• For the purposes of this Item 19, each Synergy HomeCare “Unit” refers to a single Protected Territory. Many Synergy HomeCare Businesses operate more than one Synergy HomeCare Unit because they have multiple Protected Territories.

• As of December 31, 2020, there were a total of 148 Synergy HomeCare Businesses in operation with a total of 322 Units.

• The following is a statement of the “Average Annual Gross Sales” of 137 Synergy HomeCare Businesses consisting of 302 Units that have been in operation for 1 year or more as of December 31, 2020, for the period from January 1, 2020 to December 31, 2020.

• The remaining 11 Synergy HomeCare Businesses, consisting of 20 Units, were not included in the information below because the Synergy HomeCare Businesses had not been in operation for 1 year or more as of December 31, 2020 or the businesses closed during the 2020 calendar year.

• “Average Annual Gross Sales” was calculated by taking the total Gross Sales reported for each Synergy HomeCare Business by a franchisee during the 2020 calendar year and dividing it by the number of Synergy HomeCare Businesses in the Number of Years of Operation.

• The franchisor has presented Average Annual Gross Sales by Synergy HomeCare Businesses instead of by individual Units because its franchisees report Gross Sales by business and not by Units.

• Of the Synergy HomeCare Businesses in the statement, 48 of them operated one Unit and the rest operated two or more Units.

• These statements have not been prepared in accordance with generally accepted accounting principles. The figures were compiled from data received from the Synergy HomeCare franchisees using a uniform system of reporting Gross Sales to the franchisor.

• All of the Synergy HomeCare Businesses offered substantially the same services to the public. Substantially the same services were offered by the franchisor to the Synergy HomeCare Businesses upon which the data is based.

Multi-Unit Franchise Businesses

Number of Years in Operation:  Over 10 Years

• Number of Synergy HomeCare Businesses:  30
• Average Annual Gross Sales Per Business:  $2,068,218
• Median Annual Gross Sales Per Business:  $1,786,644
• Maximum Annual Gross Sales Per Business:  $4,700,142
• Minimum Annual Gross Sales Per Business:  $555,699
• Average Gross Profit Margin:  48%

Number of Years in Operation:  6 to 9 Years

• Number of Synergy HomeCare Businesses:  38
• Average Annual Gross Sales Per Business:  $1,546,258
• Median Annual Gross Sales Per Business:  $1,209,254
• Maximum Annual Gross Sales Per Business:  $5,769,566
• Minimum Annual Gross Sales Per Business:  $189,268
• Average Gross Profit Margin:  50%

Number of Years in Operation:  1 to 5 Years

• Number of Synergy HomeCare Businesses:  21
• Average Annual Gross Sales Per Business:  $1,116,817
• Median Annual Gross Sales Per Business:  $772,423
• Maximum Annual Gross Sales Per Business:  $4,778,479
• Minimum Annual Gross Sales Per Business:  $107,522
• Average Gross Profit Margin:  47%

Single-Unit Franchise Businesses

Number of Years in Operation:  Over 10 Years

• Number of Synergy HomeCare Businesses:  14
• Average Annual Gross Sales Per Business:  $1,657,056
• Median Annual Gross Sales Per Business:  $1,420,305
• Maximum Annual Gross Sales Per Business:  $4,273,173
• Minimum Annual Gross Sales Per Business:  $217,295
• Average Gross Profit Margin:  49%

Number of Years in Operation:  6 to 9 Years

• Number of Synergy HomeCare Businesses:  12
• Average Annual Gross Sales Per Business:  $949,610
• Median Annual Gross Sales Per Business:  $701,666
• Maximum Annual Gross Sales Per Business:  $2,803,892
• Minimum Annual Gross Sales Per Business:  $341,501
• Average Gross Profit Margin:  49%

Number of Years in Operation:  1 to 5 Years

• Number of Synergy HomeCare Businesses:  22
• Average Annual Gross Sales Per Business:  $512,834
• Median Annual Gross Sales Per Business:  $341,108
• Maximum Annual Gross Sales Per Business:  $1,669,676
• Minimum Annual Gross Sales Per Business:  $61,563
• Average Gross Profit Margin:  49%

• Average Gross Profit Margin is defined as Gross Margin divided by Revenues. Gross Margin is defined as Revenues less Cost of Goods Sold. Cost of Goods Sold includes only wages paid to caregivers, excluding state and federal payroll taxes and workers’ compensation insurance.

• The information described above is based on Synergy HomeCare Businesses open and operating for at least 1 year and does not include information based on Synergy HomeCare Businesses that have been operating for less than 1 year.

• These figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• You should conduct an independent investigation of the costs and expenses you will incur in operating your Synergy HomeCare Business. Some Synergy HomeCare Businesses have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Key Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️