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

• Section I – Background information on the HomeWell Care Services franchise opportunity, including relevant news updates

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

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

• 2020 annual gross revenues, number of territories operated, and territory size equivalent for each of the 38 HomeWell Care Services franchised businesses, representing a total of 78 territories, that were open as of the end of the 2020 calendar year

Section I – Background Information

20 Things You Need to Know About the HomeWell Care Services Franchise

Announces Relaunch of Its Life Enrichment Activities Program

1.  At the beginning of April 2021, HomeWell Care Services announced the relaunch of its foundational Life Enrichment Activities Program (LEAP). The program aims to provide enrichment in clients’ homes, enhancing care beyond the typical assistance with activities of daily living. The company was founded with the original LEAP program to proactively address the negative effects of social isolation and loneliness for all clients. The program is one of the most popular and well received services the company offers because it helps to build a rapport between the client and caregiver and ultimately increases both client and caregiver satisfaction.

2.  Michelle Cone, SVP training and brand programs at HomeWell Care Services, said, “Our goal is to improve the quality of life for our clients by engaging in a variety of activities they know and enjoy. Activities that include everything from cooking, playing cards or putting together a puzzle to outdoor pastimes such as gardening, going for walks or bird watching. We want to encourage our clients to experience new things, at whatever level they can participate, to enjoy what they once missed or to continue to do what they love to do, but now with the companionship of a HomeWell caregiver.”

3.  During the COVID-19 pandemic, isolation protocols were enforced by implementing stay-at-home orders. For the most vulnerable segments of the population, this meant not being able to go to the places they once enjoyed, engaging in activities, or seeing the people for which they are closest.

4.  Crystal Franz, CEO of HomeWell Care Services, added, “By dusting off our foundational program and relaunching it with updated tools and resources for our franchisees, we are ensuring our clients that there is more to life than simply existing. Increasing their levels of engagement helps their overall quality of life, which has become especially apparent this past year as we’ve navigated the COVID pandemic.”

5.  HomeWell franchisees will be able to leverage tools and resources to assess whether a client is at-risk of social isolation, identify activities they might enjoy, and utilize the company’s vendor partnership to purchase activities and games.

Launches In-Home Palliative Care Support and Hospice Care Support Programs

6.  In late October 2021, HomeWell Care Services launched the Palliative Care Support and Hospice Care Support programs to offer clients a personalized schedule of in-home care and companionship that complements their palliative or hospice care plan, relieves family members from the demands of caregiving, and gives clients and families the peace of mind needed to focus on quality time together.

7.  Increasingly, adults facing serious or life-threatening diseases are choosing to receive palliative and hospice treatment at home. HomeWell’s new programs are expertly designed for clients who make this choice, which requires support that many families can’t provide on their own. Both programs include a focus on minimizing pain and other symptoms, assistance with personal care to minimize stress, medication reminders for pain management, and emotional support for clients and their families alike.

8.  Each client is assigned a Care Manager who liaises with the client’s palliative or hospice team, and who carefully matches clients and caregivers to best provide the companionship and reassurance that clients and families need. As part of the program, HomeWell’s Care Managers and handpicked caregivers receive additional training, guidelines, and best practices to reinforce their understanding of the complexities of palliative and hospice care.

9.  Michelle Cone, HomeWell’s SVP of training and brand programs, said, “Aging adults and others facing serious, life-threatening diseases are choosing to spend their most challenging times and even final days where they are most comfortable: their own home. It’s incredibly important that their families have access to supportive, compassionate services. Our Palliative Care Support and Hospice Care Support programs support family caregivers when they feel overwhelmed, offering strength, comfort, and a shoulder to lean on whenever needed.”

10.  As with HomeWell’s other special programs, which include the SureStep fall prevention program, the GoHomeWell post-hospital program, and the wellbeing-focused Life Enrichment Activities Program, HomeWell agencies can deliver Palliative Care Support and Hospice Care Support wherever their clients call home, be it their family home or their assisted living community.

Sees Rapid Growth and National Recognition in 2021

11.  At the end of December 2021, HomeWell Care Services said that it expects rapid growth in 2022 based on record-setting results in 2021, in which the company and its brand earned widespread industry recognition. Known for its innovative care programs that promote healthier and happier living wherever clients call home, HomeWell is poised to bring its services to new territories nationwide through its growing community of committed, engaged franchisees.

12.  According to CEO Crystal Franz, “Our achievements in 2021 have put us on a trajectory for remarkable growth in 2022. The non-medical home care industry is growing fast, fulfills an urgent need, and has proven exceptionally valuable throughout the pandemic. HomeWell’s distinctive brand programs, expertly designed to address urgent issues like social isolation, fall prevention and transitional care, are making a difference for clients and referral partners throughout the continuum of care. Our community of franchisees are distinguishing themselves nationwide in providing trusted care with true compassion. 2022 is shaping up to be an exciting year for HomeWell Care Services.”

13.  In August 2021, HomeWell joined the Inc. 5000 ranking of the fastest growing private businesses in the United States. The company entered 2022 with more than 100 franchise units and a strong pipeline of future owners. Focused on strategic expansion across the US through franchise-owned development, HomeWell saw growth in all areas of its business, including its franchise development pipeline and the ability for new franchisees to grow their businesses. The company ended 2021 having executed 30 contracts, signed 15 new owners, and expanded into 25 new territories.

14.  HomeWell distinguished itself in the home care industry throughout 2021 with initiatives like the relaunch of its innovative Life Enrichment Activities Program, a preventative program that tackles the harmful effects of loneliness and social isolation in vulnerable senior populations. The company also launched the Palliative Care Support and Hospice Care Support programs, empowering franchisees to address the growing demand for in-home palliative and hospice services in their communities. Other initiatives include a brand identity reinvention, which earned an Aging Media 2021 Aspect Award, and HomeWell’s national television debut on LifeTime TV’s Designing Spaces.

15.  HomeWell’s approach earned widespread recognition from industry organizations and media outlets throughout 2021. As well as joining the Inc. 5000, HomeWell was featured in the Entrepreneur Franchise 500 based on factors including growth, brand strength, and financial strength and stability. Franchise Business Review named HomeWell a Most Profitable Franchise, Culture 100 Franchise, Top Multi-Unit Franchise, and Top Franchise for Veterans, while Franchise Dictionary named the company a 2021 Game Changer. Home Care Pulse named HomeWell a 2021 Endorsed National Provider, and awarded Best of Home Care awards to five individual HomeWell agencies.

16.  HomeWell’s growth and evolution were accelerated by strategic changes to its organization in 2021, with new leadership appointments of executives deeply experienced in their respective fields. These include Crystal Franz as CEO, Brandon Clifford as SVP of franchise development and franchise services, Michelle Cone as SVP of training and brand programs, and Mishelle Payne as VP of marketing. Casey McCleskey continues to serve as chief financial officer. The company further added a team of Franchise Business Consultants, dedicated to helping owners launch, grow, and sustain their businesses through one-to-one coaching and site visits.

17.  Franz added, “At HomeWell, we have a strong track record of initiatives leading to rapid growth, and no plans to slow down. We will continue to bring in the very best people from their respective fields, and to attract and invest in the right kind of franchise owners. We’re working on new programs that will further differentiate HomeWell to our clients and referral partners by enabling better outcomes across the continuum of care. We plan to lead our industry with initiatives that increase the value and viability of in-home care, and to ensure that our franchisees have the very best training and support to deliver on HomeWell’s promise.”

Company History

18.  HomeWell Care Services was founded by 1996 by Joshua Hoffman as Hoffman’s Home Helpers in Seattle, Washington. Hoffman, who had spent years working as a caregiver, wanted to start his own senior care company that allowed seniors to stay in their own homes for as long as possible. Over the next few years, Hoffman successfully grew the business and in 2002, he changed the company’s name to HomeWell Senior Care as he began to eye franchising. The following year, the first franchise opened in Canada.

19.  HomeWell continued to grow around North America over the next decade. In 2018, the company was acquired by Bruce Haase, owner of Haase Holdings, LLC. Haase also served in leadership roles in the hospitality industry. Hoffman still retains one-third ownership of HomeWell Care Services. Since Haase’s acquisition, HomeWell Care Services has pushed national expansion.

Entrepreneur’s Franchise 500

20.  HomeWell Care Services ranked No. 266 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of HomeWell Care Services 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 HomeWell Care Services’ 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:  56
• Outlets at the End of the Year:  53
• Net Change:  -3

2019

• Outlets at the Start of the Year:  53
• Outlets at the End of the Year:  58
• Net Change:  +5

2020

• Outlets at the Start of the Year:  58
• Outlets at the End of the Year:  78
• Net Change:  +20

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

• The financial performance information presented below is based on the historical results for the 2020 calendar year for all HomeWell businesses that were open as of the end of the 2020 calendar year. There were no company-operated businesses.

• For purposes of this Item 19, a “HomeWell business” includes all of the Franchised Businesses operated by a single franchisee and may be operated within a single territory or multiple territories, depending upon the number of Franchise Agreements that the franchisee has signed with HomeWell (or in some cases the size of the territory).

• HomeWell has presented the Annual Gross Revenue information in this Item 19 by “HomeWell business” rather than by individual Franchised Businesses since HomeWell franchisees report Gross Revenue to HomeWell for their overall HomeWell business and not always by territory.

•  As of December 31, 2020, there were a total of 38 open and operating HomeWell businesses representing a total of 78 territories. The financial performance representations in Part 1 consists of data for all 38 of those businesses even if a business opened during 2020 and therefore had not been open for a full 12 months as of December 31, 2020.  There were no outlets that opened and closed in the 2020 fiscal year.

• Part 1 also identifies the number of territories that each of the included HomeWell businesses operate, as well as the “equivalent territory size.” For example, five of the HomeWell businesses included in Part 1 operate one or more territories that are at least twice as large as the average-sized territory and are denoted with an asterisk.

• For purposes of this Item 19, “Gross Revenues” means the total amount billed by you (regardless of collection) arising from, connected with, or related to the sale of all goods, merchandise, or services and all business transacted at, from, or through your Franchised Business, directly or indirectly, excluding only (a) sales taxes and other taxes separately stated that you collect from clients and pay to taxing authorities; (b) refunds and credits made in good faith to arm’s-length clients according to HomeWell’s standards and specifications for issuing refunds or credits; and (c) the discount value of any coupon, voucher, or other allowance that HomeWell authorizes at the time you redeem the client’s coupon, voucher, or allowance.

• The Gross Revenues information was provided to HomeWell through required reports received from franchisees using a uniform system of reporting. The data has not been audited or independently verified by HomeWell or its accountant.

Part 1 – Annual Gross Revenues for HomeWell Care Businesses for Calendar Year 2020

Franchisee 1

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $0

Franchisee 2

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $0

Franchisee 3

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $633

Franchisee 4

• Year Open:  2020
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $451

Franchisee 5

• Year Open:  2020
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $26,047

Franchisee 6

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $119,741

Franchisee 7

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $100,145

Franchisee 8

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $1,130,087

Franchisee 9

• Year Open:  2020
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $56,374

Franchisee 10

• Year Open:  2020
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $272,053

Franchisee 11

• Year Open:  2020
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $370,509

Franchisee 12

• Year Open:  2019
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $647,263

Franchisee 13

• Year Open:  2019
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $393,346

Franchisee 14

• Year Open:  2019
• Number of Territories Operated by Franchisee:  3
• Territory Size Equivalent:  3
• Annual Gross Revenues:  $326,016

Franchisee 15

• Year Open:  2019
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $302,121

Franchisee 16

• Year Open:  2019
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $588,633

Franchisee 17

• Year Open:  2019
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $242,352

Franchisee 18

• Year Open:  2019
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $613,522

Franchisee 19

• Year Open:  2018
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $887,193

Franchisee 20

• Year Open:  2017
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $507,554

Franchisee 21

• Year Open:  2017
• Number of Territories Operated by Franchisee:  3
• Territory Size Equivalent:  3
• Annual Gross Revenues:  $1,068,948

Franchisee 22

• Year Open:  2017
• Number of Territories Operated by Franchisee:  3
• Territory Size Equivalent:  3
• Annual Gross Revenues:  $338,179

Franchisee 23

• Year Open:  2016
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $704,106

Franchisee 24

• Year Open:  2016
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $735,411

Franchisee 25*

• Year Open:  2016
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $1,202,992

Franchisee 26

• Year Open:  2015
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $1,052,041

Franchisee 27

• Year Open:  2015
• Number of Territories Operated by Franchisee:  3
• Territory Size Equivalent:  3
• Annual Gross Revenues:  $1,559,422

Franchisee 28

• Year Open:  2013
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $974,427

Franchisee 29

• Year Open:  2012
• Number of Territories Operated by Franchisee:  8
• Territory Size Equivalent:  8
• Annual Gross Revenues:  $1,939,882

Franchisee 30

• Year Open:  2012
• Number of Territories Operated by Franchisee:  5
• Territory Size Equivalent:  5
• Annual Gross Revenues:  $3,197,319

Franchisee 31

• Year Open:  2012
• Number of Territories Operated by Franchisee:  2
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $1,867,547

Franchisee 32*

• Year Open:  2011
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $865,382

Franchisee 33

• Year Open:  2011
• Number of Territories Operated by Franchisee:  4
• Territory Size Equivalent:  4
• Annual Gross Revenues:  $4,892,481

Franchisee 34*

• Year Open:  2010
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  2
• Annual Gross Revenues:  $323,947

Franchisee 35*

• Year Open:  2006
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  3
• Annual Gross Revenues:  $2,634,573

Franchisee 36

• Year Open:  2006
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $659,812

Franchisee 37

• Year Open:  2006
• Number of Territories Operated by Franchisee:  1
• Territory Size Equivalent:  1
• Annual Gross Revenues:  $3,473,662

Franchisee 38*

• Year Open:  2005
• Number of Territories Operated by Franchisee:  6
• Territory Size Equivalent:  8
• Annual Gross Revenues:  $13,569,681

Average for Franchisees That Opened Before 2020 (Franchisees 12 to 38)

• Number of Franchisees:  27
• Average Number of Territories Operated by Franchisee:  2.3
• Average Territory Size Equivalent:  2.6
• Average Annual Gross Revenues:  $1,687,697

• These figures do not reflect whether the franchisees operated at a net profit or net loss.

• The financial performance figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from net revenue or net sales figures to obtain your net income or profit. Additional expenses that you may incur include royalty and local marketing obligations, interest on debt service, insurance, and legal and accounting fees.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

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