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

• Section I – Background information on the Home Instead Senior Care franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Home Instead Senior Care 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 Home Instead Senior Care franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Home Instead Senior Care 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 Home Instead Senior Care’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• number and percentage of Home Instead U.S. Franchised Businesses in operation as of December 31, 2020 that achieved 2020 gross sales of $4,500,000+; $4,000,000 to $4,499,999; $3,500,000 to $3,999,999; $3,000,000 to $3,499,999; $2,500,000 to $2,999,999; $2,100,000 to $2,499,999; $1,900,000 to $2,099,999; $1,700,000 to $1,899,999; $1,500,000 to $1,699,999; $1,300,000 to $1,499,999; $1,100,000 to $1,299,999; $900,000 to $1,099,999; $700,000 to $899,999; $500,000 to $699,999; and $0 to $499,999

• 2020 average, median, high, and low gross sales for the 600 Home Instead U.S. Franchised Businesses in operation during the entire calendar year ending December 31, 2020

Section I – Background Information

22 Things You Need to Know About the Home Instead Senior Care Franchise

Acquired by Honor Technology

1.  In early August 2021, Home Instead Senior Care announced that it had been acquired by Honor Technology, Inc. The acquisition brings together the largest, highest-touch home care network and the leading home care technology and operations platform to transform the professional caregiver and client experience and revolutionize care for older adults.

2.  The combined organization represents more than $2.1 billion in home care services revenue and affirms itself as the largest player in the projected $500 billion home care industry. Financial terms of the acquisition were not disclosed.

3.  Honor’s technology and operations platform, paired with Home Instead’s leading global network, training leadership, and relationship-based care, will serve as a foundation for a dramatic increase in innovation to benefit caregivers and clients through expanded offerings.

4.  According to Seth Sternberg, co-founder and CEO of Honor, “For the past 27 years, Home Instead has demonstrated a powerful combination of leadership, passion, and innovation – elevating the standard of care globally and becoming the respected industry leader. This is an incredibly exciting moment as we bring together the preeminent global home care brand and network with the best technology and operations platform to provide an even more amazing caregiver and client experience. Never before in the history of the world has a company had this much reach or this much investment in technology to solve caring for aging adults, their loved ones and those who care for them.”

5.  To drive innovation, Honor will substantially increase its investment in research and development through engineering and technology. Honor and Home Instead also plan to extend their advocacy and social purpose initiatives. The combination will empower professional caregivers and enable millions more older adults across the globe to receive the support they need now and in the future.

6.  Jeff Huber, CEO of Home Instead, added, “These two organizations share one passion: transforming the care experience for older adults around the world. For years, our commitment has been to create the world we want to grow older in. This transaction adds fuel to that commitment. Combining the strengths of these companies moves our passion from aspirational vision to inevitable impact.”

7.  Honor Technology, Inc. is a private company. Investors include Andreessen Horowitz, Baillie Gifford, fund advised by T. Rowe Price Associates, Inc., Rock Springs, Prosus Ventures, Thrive Capital, and 8VC.

8.  Marc Andreessen, co-founder and general partner at the venture capital firm Andreessen Horowitz and Honor board of directors member, said, “Nobody has been able to figure out how we deliver high-quality care at scale, until now. This acquisition fundamentally transforms the senior care space, flipping it from analog to digital. Technology will drive operational efficiency and personalization at scale, which is the only way to meet the skyrocketing needs of the baby-boom generation. If we increase our capacity to care, the next generation – and those after – will reap the benefits as well.”

9.  The Home Instead network will operate under the Home Instead name as a subsidiary of Honor. The Honor Care Network will continue under the Honor name. Seth Sternberg will continue in his role as CEO of Honor. Jeff Huber will report to Sternberg and continue to lead Home Instead as CEO, maintaining the brand that people have come to know and trust along with the high-quality care delivered to millions of older adults and their families.

10.  Together, Honor and Home Instead will focus on further professionalizing the role of the caregiver and use technology as a foundation to strengthen the relationship between caregiver and client. This innovation will require additional engineering and development resources, which Honor and Home Instead are currently looking to fill.

11.  Huber added, “The pandemic turned a simmering back-burner issue into an urgent, global human crisis for older adults. It’s a simple truth: The way the world cares for older adults must evolve. The hospital of the future is the living room. And that future will be fueled by a vibrant, respected workforce delivering care with skill and compassion. Senior care should always be a personal, high-touch experience. Technology will make that experience more personal and more high-touch”

12.  There is a severe shortage of professional caregivers across the globe, as outlined in the 2021 report Building the Caregiving Workforce Our Aging World Needs. As a result of this combination, Honor and Home Instead will continually enhance training opportunities for caregivers. Honor’s easy-to-use interactive app gives caregivers access to consistent hours and allows them to participate more in the process, which improves their overall satisfaction.

13.  Sternberg said, “Our primary focus is treating caregivers with respect and providing them with the tools they need to succeed. We call it Care for Care Pros. We know that if we care for our caregivers, they’ll in turn provide even better care for our parents.”

Joined Forces with Amazon Business to Brighten the Holiday Season for Seniors

14.  In mid-November 2020, Home Instead Senior Care teamed up with Amazon Business to create a contactless gift-giving experience for volunteers and recipients. This collaboration with Amazon Business helped Home Instead to provide the same holiday cheer to local seniors while also prioritizing the safety and wellness of all who were involved.

15.  For nearly two decades, Home Instead’s Be a Santa to a Senior program has been a seasonal staple in local communities across the country, delivering presents and essential items to seniors who might not otherwise receive a gift over the holidays.

16.  Participating local Home Instead franchises created customized Amazon Business Wish Lists for local seniors in need. Anyone in the community could purchase gifts online from their homes, which were delivered directly to the recipient’s home or to the local Home Instead office for personal delivery.

17.  Jeff Huber, CEO of Home Instead, said, “Social distancing has amplified feelings of loneliness for many older adults, making it more critical than ever for communities to stay connected this holiday season. The Be a Santa to a Senior program was designed to remind seniors they matter. And through our partnership with Amazon, community members will have the opportunity to bring the joy of the holidays to older adults while remaining as safe as possible.”

18.  Since the program’s creation in 2003, Be a Santa to a Senior has mobilized more than 60,000 volunteers, provided approximately 2.1 million gifts, and brightened the season for more than 700,000 deserving seniors nationwide. With the added convenience of online capabilities, Home Instead was able to continue the annual gift-giving program while following social distancing and safety precautions during COVID-19.

Company History

19.  Home Instead Senior Care was founded in 1994 by Paul Hogan and his wife Lori in Omaha, Nebraska. The Hogans were inspired to start their own senior care business after having difficulty taking care of Paul’s grandmother. The Hogans wanted to keep her out of a nursing home and passed around care duties to various family members, which was incredibly difficult.

20.  After this struggle, the Hogans began wondering how other families with fewer family members and resources were caring for their senior relatives. Hogan’s grandmother became Home Instead’s first client and after receiving consistent care and getting re-engaged with activities she loved, Grandma Manhart’s health improved.

21.  The Hogans began offering their services to other families in the Omaha area, but they quickly realized that there were countless families who needed this kind of help. They began franchising Home Instead in 1995 and the brand expanded quickly around North America. Today, Home Instead Senior Care is one of the biggest senior home care franchises in the U.S.

Entrepreneur’s Franchise 500

22.  Home Instead Senior Care ranked No. 242 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Home Instead Senior Care franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• Detailed information on Home Instead Senior Care’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:  598
• Outlets at the End of the Year:  604
• Net Change:  +6

2019

• Outlets at the Start of the Year:  604
• Outlets at the End of the Year:  609
• Net Change:  +5

2020

• Outlets at the Start of the Year:  609
• Outlets at the End of the Year:  609
• Net Change:  0

Company-Owned

2018

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  3
• Net Change:  -2

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  2
• Net Change:  -1

2020

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• For purposes of this Item 19, “Gross Sales” means the aggregate amount of all sales of all services and products, and other goods and services, whether for cash, on credit or otherwise, made or provided at or in connection with the Franchised Business, including all charges for services performed.

• Gross Sales does not include: (1) any federal, state, municipal, or other sales tax, goods and services tax, value-added or other retailer’s excise tax, or any other similar tax on the supply of goods and services collected from customers at the point of sale and that you pay or accrue, if such taxes are separately stated when the client is charged and if such taxes are paid to the appropriate taxing authority, or (2) adjustments for net returns on salable goods and discounts allowed to customers on sales.

• In addition, Gross Sales does not include the amount of any refunds, chargebacks, credits, and allowances given in good faith to clients by franchisees and the amount of mileage and out-of-pocket expenses incurred by and reimbursed to franchisees’ employees in connection with providing services to clients.

Part 1 – Gross Sales Data by Years in Business

• The Gross Sales data in the table below is based upon information reported to Home Instead by the 609 Home Instead U.S. Franchised Businesses in operation as of December 31, 2020 on an individual per franchise basis.

• The Gross Sales data does not include 2 Home Instead businesses operated by Home Instead’s affiliates for all or a portion of the year.

2020 Total Revenue

0-1 Years in Business as of December 31, 2020

• $4,500,000+:  0
• $4,000,000 to $4,499,999:  0
• $3,500,000 to $3,999,999:  0
• $3,000,000 to $3,499,999:  0
• $2,500,000 to $2,999,999:  0
• $2,100,000 to $2,499,999:  0
• $1,900,000 to $2,099,999:  0
• $1,700,000 to $1,899,999:  0
• $1,500,000 to $1,699,999:  0
• $1,300,000 to $1,499,999:  0
• $1,100,000 to $1,299,999:  0
• $900,000 to $1,099,999:  1
• $700,000 to $899,999:  1
• $500,000 to $699,999:  3
• $0 to $499,999:  13
• Grand Total:  18

2-3 Years in Business as of December 31, 2020

• $4,500,000+:  0
• $4,000,000 to $4,499,999:  1
• $3,500,000 to $3,999,999:  0
• $3,000,000 to $3,499,999:  2
• $2,500,000 to $2,999,999:  1
• $2,100,000 to $2,499,999:  2
• $1,900,000 to $2,099,999:  1
• $1,700,000 to $1,899,999:  2
• $1,500,000 to $1,699,999:  1
• $1,300,000 to $1,499,999:  2
• $1,100,000 to $1,299,999:  2
• $900,000 to $1,099,999:  1
• $700,000 to $899,999:  4
• $500,000 to $699,999:  3
• $0 to $499,999:  0
• Grand Total:  22

4-5 Years in Business as of December 31, 2020

• $4,500,000+:  1
• $4,000,000 to $4,499,999:  0
• $3,500,000 to $3,999,999:  0
• $3,000,000 to $3,499,999:  0
• $2,500,000 to $2,999,999:  0
• $2,100,000 to $2,499,999:  1
• $1,900,000 to $2,099,999:  0
• $1,700,000 to $1,899,999:  0
• $1,500,000 to $1,699,999:  1
• $1,300,000 to $1,499,999:  2
• $1,100,000 to $1,299,999:  1
• $900,000 to $1,099,999:  2
• $700,000 to $899,999:  3
• $500,000 to $699,999:  1
• $0 to $499,999:  0
• Grand Total:  12

6-7 Years in Business as of December 31, 2020

• $4,500,000+:  0
• $4,000,000 to $4,499,999:  0
• $3,500,000 to $3,999,999:  1
• $3,000,000 to $3,499,999:  0
• $2,500,000 to $2,999,999:  1
• $2,100,000 to $2,499,999:  2
• $1,900,000 to $2,099,999:  0
• $1,700,000 to $1,899,999:  0
• $1,500,000 to $1,699,999:  1
• $1,300,000 to $1,499,999:  2
• $1,100,000 to $1,299,999:  1
• $900,000 to $1,099,999:  2
• $700,000 to $899,999:  1
• $500,000 to $699,999:  1
• $0 to $499,999:  0
• Grand Total:  12

8-9 Years in Business as of December 31, 2020

• $4,500,000+:  0
• $4,000,000 to $4,499,999:  1
• $3,500,000 to $3,999,999:  0
• $3,000,000 to $3,499,999:  0
• $2,500,000 to $2,999,999:  3
• $2,100,000 to $2,499,999:  1
• $1,900,000 to $2,099,999:  1
• $1,700,000 to $1,899,999:  4
• $1,500,000 to $1,699,999:  3
• $1,300,000 to $1,499,999:  3
• $1,100,000 to $1,299,999:  4
• $900,000 to $1,099,999:  2
• $700,000 to $899,999:  1
• $500,000 to $699,999:  2
• $0 to $499,999:  0
• Grand Total:  25

10-11 Years in Business as of December 31, 2020

• $4,500,000+:  1
• $4,000,000 to $4,499,999:  0
• $3,500,000 to $3,999,999:  1
• $3,000,000 to $3,499,999:  2
• $2,500,000 to $2,999,999:  2
• $2,100,000 to $2,499,999:  1
• $1,900,000 to $2,099,999:  3
• $1,700,000 to $1,899,999:  4
• $1,500,000 to $1,699,999:  0
• $1,300,000 to $1,499,999:  2
• $1,100,000 to $1,299,999:  3
• $900,000 to $1,099,999:  6
• $700,000 to $899,999:  4
• $500,000 to $699,999:  0
• $0 to $499,999:  0
• Grand Total: 29

12-13 Years in Business as of December 31, 2020

• $4,500,000+:   1
• $4,000,000 to $4,499,999:  1
• $3,500,000 to $3,999,999:  0
• $3,000,000 to $3,499,999:  2
• $2,500,000 to $2,999,999:  2
• $2,100,000 to $2,499,999:  7
• $1,900,000 to $2,099,999:  1
• $1,700,000 to $1,899,999:  4
• $1,500,000 to $1,699,999:  5
• $1,300,000 to $1,499,999:  2
• $1,100,000 to $1,299,999:  2
• $900,000 to $1,099,999:  4
• $700,000 to $899,999:  4
• $500,000 to $699,999:  1
• $0 to $499,999:  1
• Grand Total:  37

14-15 Years in Business as of December 31, 2020

• $4,500,000+:  5
• $4,000,000 to $4,499,999:  1
• $3,500,000 to $3,999,999:  4
• $3,000,000 to $3,499,999:  4
• $2,500,000 to $2,999,999:  3
• $2,100,000 to $2,499,999:  8
• $1,900,000 to $2,099,999:  4
• $1,700,000 to $1,899,999:  4
• $1,500,000 to $1,699,999:  8
• $1,300,000 to $1,499,999:  4
• $1,100,000 to $1,299,999:  10
• $900,000 to $1,099,999:  6
• $700,000 to $899,999:  3
• $500,000 to $699,999:  2
• $0 to $499,999:  0
• Grand Total:  66

16+ Years in Business as of December 31, 2020

• $4,500,000+:  31
• $4,000,000 to $4,499,999:  11
• $3,500,000 to $3,999,999:  15
• $3,000,000 to $3,499,999:  32
• $2,500,000 to $2,999,999:  40
• $2,100,000 to $2,499,999:  56
• $1,900,000 to $2,099,999:  28
• $1,700,000 to $1,899,999:  25
• $1,500,000 to $1,699,999:  41
• $1,300,000 to $1,499,999:  30
• $1,100,000 to $1,299,999:  28
• $900,000 to $1,099,999:  28
• $700,000 to $899,999:  10
• $500,000 to $699,999:  10
• $0 to $499,999:  3
• Grand Total:  388

Grand Total

• $4,500,000+:  39 (6%)
• $4,000,000 to $4,499,999:  15 (2%)
• $3,500,000 to $3,999,999:  21 (3%)
• $3,000,000 to $3,499,999:  42 (7%)
• $2,500,000 to $2,999,999:  52 (9%)
• $2,100,000 to $2,499,999:  78 (13%)
• $1,900,000 to $2,099,999:  38 (6%)
• $1,700,000 to $1,899,999:  43 (7%)
• $1,500,000 to $1,699,999:  60 (10%)
• $1,300,000 to $1,499,999:  47 (8%)
• $1,100,000 to $1,299,999:  51 (8%)
• $900,000 to $1,099,999:  52 (9%)
• $700,000 to $899,999:  31 (5%)
• $500,000 to $699,999:  23 (4%)
• $0 to $499,999:  17 (3%)
• Grand Total:  609 (100%)

Part 2 – Average, Median, High, and Low Gross Sales

• The Gross Sales data in the table below is based upon information reported to Home Instead by the 600 Home Instead U.S. Franchised Businesses in operation during the entire calendar year ending December 31, 2020, on an individual per franchise basis.

• The Gross Sales data does not include 2 Home Instead businesses operated by Home Instead’s affiliates. The Gross Sales data also does not include any Franchised Businesses that opened or closed in calendar year 2020.

• Number of Franchised Businesses:  600
• Average Gross Sales:  $2,169,901
• Number and Percentage of Franchised Businesses Meeting or Exceeding Average:  227 / 38%
• Median Gross Sales Per Franchised Business:  $1,848,256
• Highest Franchised Business Gross Sales:  $9,785,829
• Lowest Franchised Business Gross Sales:  $156,783

• The Franchised Businesses whose data is included in the tables above are substantially similar to the franchises Home Instead is offering in the disclosure document, and their services are the same as those to be offered and sold by you.

• The Gross Sales data in the tables above do not contain any information regarding the cost of sales, operating expenses, or other costs or expenses that must be deducted from Gross Sales to obtain your net income or profit.

• The information in the tables above has been prepared by Home Instead’s management from royalty records reported to it by its franchisees and has not been independently audited, but Home Instead does not have any reason to believe the information is not reliable.

• Some Franchised Businesses have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

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