FDD Talk: How Much Does an Amada Senior Care Franchise Make (Average Revenues and/or Profits)?

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

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

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

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

• average, median, highest, and lowest gross billings for the franchised Amada Senior Care outlets that have been open and operating and reporting gross billings to Amada for at least one full calendar year since Amada’s inception in 2012, during their first to eighth full calendar year of operations

• 2017, 2018, 2019, and 2020 average, median, highest, and lowest gross billings for franchised Amada Senior Care outlets that have been open and operating for the entire designated period

Section I – Background Information

14 Things You Need to Know About the Amada Senior Care Franchise

Selects AxisCare for Scheduling Software

1.  In late July 2020, Amada Senior Care announced that it has selected AxisCare as its preferred software vendor for all locations, providing the franchise with back-office and point-of-care management, built-in marketing, scheduling, billing & payroll, analytical reporting, EVV compliance, COVID screening, and more.

2.  Amada’s corporate leadership team reviewed several software solutions throughout the previous two years via pilot tests, onsite visits, in-depth demonstrations, and ability to develop custom tools for the Amada network. The two main factors in Amada’s selection process were the ability to effectively support its 100+ locations on Day 1, and the capability to customize the software to fit Amada’s model.

3.  Amada started the pilot process with the software in 2018 when the Colorado Springs location selected AxisCare to use as its home care management platform. “We needed a scheduling software that would help us grow. We looked at 3 different companies, tried two, and chose AxisCare. The support and help from Todd and his team was amazing. They stepped in on day one and knocked it out of the park. AxisCare is an amazing company and has made the transition so simple. They are constantly seeking ways to improve our experience. We are completely satisfied with the efforts to make us more successful,” said Ken Jenson, the owner of that location.

4.  Over the next several months after Jenson moved to AxisCare, other locations began rolling out the platform, and now the web-based platform is currently in use in over 60 Amada locations.

5.  According to Tafa Jefferson, co-founder and CEO of Amada Senior Care, “We are extremely pleased to select AxisCare as our official Point-of-Care platform. In order to move our U.S. operations and expand our franchise network to the next level, we needed more than a scheduling solution. The customer care experience and remote technology support is second to none. AxisCare’s team is in constant pursuit of meaningful features and functionality for the engaged operator, providing us with the insight, benchmarking tools and key analytics necessary to grow and improve our unit economics. AxisCare has proven to be more than a vendor. We view them as a trusted partner and an integral part of the success of Amada Senior Care.”

6.  Todd Allen, AxisCare’s CEO, added, “It’s an honor to be selected as the Amada network provider of scheduling and management software. Since our discussions began, we’ve been very impressed by Amada’s corporate leadership and their commitment to the franchisees’ success, and we are excited to provide them with the tools and resources they need to make that possible.”

7.  Prior to using AxisCare, Amada Senior Care was using an internal system that did not fully meet the needs of its agencies, slowing down operations and adding frustration to daily tasks like scheduling and billing. Amada began vetting software providers to find a solution that would meet the specific needs of its franchisees and assist Amada Corporate with franchisee management. After many months of searching, Amada chose AxisCare because of its vast feature-suite and agency support experience.

Value Awards Shine Spotlight on Exceptional Amada Caregivers

8.  On October 28, 2021, Amada Senior Care held an awards ceremony as part of its national conference to express the company’s sincere appreciation of the life-enriching efforts of all Amada caregivers as well as honor the six who embody Amada’s Caregiver Values. Each Value Award represents one of Amada’s 6 Caregiver Core Values, which are Compassionate, Competent, Communicative, Committed, Confidently Humble, and Congenial. These “Caregiver 6Cs” reflect Amada’s caregiving philosophy and process.

9.  Amada franchise partners nominated members of their caregiver teams for consideration and a juried panel selected the award recipients. The recipients of the 2020-21 Amada Caregiver Value Awards were Jill Murray (Compassionate), Justin Delgado (Competent), Linda Hopkins (Committed), Madison Workman (Communicative), Erica Pierce (Confidently Humble), and Shirley Gardener (Congenial).

Company History

10.  Amada Senior Care, formerly Amada Home Care, was founded in 2007 by college friends Tafa Jefferson and Chad Fotheringham, who met while studying business and playing football together at University of the Pacific. The company is based in San Clemente, California.

11.  Jefferson already had a decade of experience in the senior home care industry. His mother was a caregiver and it inspired him to start his own in-home senior care company in 1998. Determined that he would never ask a caregiver to do anything he wouldn’t do himself, Jefferson became a Certified Nursing Aide and worked directly with clients.

12.  Fotheringham worked for Pfizer in Managed Care Consulting, which involved helping healthcare companies improve their plans and educating the public to take active steps to maintain wellness. Jefferson reconnected with Fotheringham and the two developed the concept for Amada Senior Care.

13.  After a few years of growth, Jefferson and Fotheringham started franchising Amada Senior Care in 2012. Today, there are Amada Senior Care franchises across the United States.

Entrepreneur’s Franchise 500

14.  Amada Senior Care did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Amada 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 Amada 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:  83
• Outlets at the End of the Year:  96
• Net Change:  +13

2019

• Outlets at the Start of the Year:  96
• Outlets at the End of the Year:  108
• Net Change:  +12

2020

• Outlets at the Start of the Year:  108
• Outlets at the End of the Year:  118
• Net Change:  +10

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:  1
• Net Change:  +1

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

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

• The following historical financial performance representations are based on the past performance of the System’s existing outlets.

• The tables below disclose Gross Billings of franchised outlets that have been open and operating and reporting Gross Billings to Amada for at least one full calendar year since Amada’s inception in 2012. For example, if an outlet opened in November of 2012, its first full calendar year would have been January 1, 2013 to December 31, 2013. Its second full calendar year would have been January 1, 2014 to December 31, 2014. And so on.

• Between Amada’s inception in 2012 and the issuance date of the current disclosure document, there have been a total of 2 affiliate owned outlets and 158 franchisees. Amada has not included outlets in the tables below that have not yet completed a full calendar year of operations in the System, that never opened, that were transferred, closed, or ceased operations for other reasons, or that have not reported their Gross Billings to Amada in accordance with System requirements.

Part 1 – First Full Calendar Year Gross Billings

• As of the issuance date of the current disclosure document, Amada has 75 franchisees in the System who between Amada’s inception in 2012 and December 31, 2020, have completed at least 1 full calendar year operating and reporting to Amada; Gross Billings for their first full calendar year of operations are disclosed in Part 1 below.

• High:  $2,299,903
• Low:  $26,391
• Median:  $395,769
• Average:  $491,202
• Number at or Above Average:  28 of 75 (37.3%)

Part 2 – Second Full Calendar Year Gross Billings

• Amada has 68 franchisees in the System that have been operational and reporting to Amada for 2 full calendar years; their second full calendar year Gross Billings are disclosed in Part 2 below.

• High:  $3,627,578
• Low:  $69,400
• Median:  $862,266
• Average:  $957,911
• Number at or Above Average:  28 of 68 (41.2%)

Part 3 – Third Full Calendar Year Gross Billings

• Amada has 54 franchisees in the System that have been operational and reporting to Amada for 3 full calendar years; their third full calendar year Gross Billings are disclosed in Part 3 below.

• High:  $3,742,590
• Low:  $190,503
• Median:  $1,079,138
• Average:  $1,235,515
• Number at or Above Average:  24 of 54 (44.4%)

Part 4 – Fourth Full Calendar Year Gross Billings

• Amada has 47 franchisees in the System that have been operational and reporting to Amada for 4 full calendar years; their fourth full calendar year Gross Billings are disclosed in Part 4 below.

• High:  $3,553,778
• Low:  $277,415
• Median:  $1,490,054
• Average:  $1,543,569
• Number at or Above Average:  22 of 47 (46.8%)

Part 5 – Fifth Full Calendar Year Gross Billings

• Amada has 33 franchisees in the System that have been operational and reporting to Amada for 5 full calendar years; their fifth full calendar year Gross Billings are disclosed in Part 5 below.

• High:  $5,439,884
• Low:  $127,479
• Median:  $1,731,826
• Average:  $1,818,606
• Number at or Above Average:  16 of 33 (48.5%)

Part 6 – Sixth Full Calendar Year Gross Billings

• Amada has 20 franchisees in the System that have been operational and reporting to Amada for 6 full calendar years; their sixth full calendar year Gross Billings are disclosed in Part 6 below.

• High:  $6,138,975
• Low:  $213,293
• Median:  $1,973,341
• Average:  $2,053,902
• Number at or Above Average:  9 of 20 (45.0%)

Part 7 – Seventh Full Calendar Year Gross Billings

• Amada has 10 franchisees in the System that have been operational and reporting to Amada for 7 full calendar years; their seventh full calendar year Gross Billings are disclosed in Part 7 below.

• High:  $6,274,246
• Low:  $217,660
• Median:  $1,693,834
• Average:  $2,162,610
• Number at or Above Average:  3 of 10 (30.0%)

Part 8 – Eighth Full Calendar Year Gross Billings

• Amada has 2 franchisees in the System that have been operational and reporting to Amada for 8 full calendar years; their eighth full calendar year Gross Billings are disclosed in Part 8 below.

• High:  $7,073,075
• Low:  $2,066,943
• Median:  $4,570,009
• Average:  $4,570,009
• Number at or Above Average:  1 of 2 (50.0%)

Part 9 – Revenue for Franchisees Operating the Full Year for 2017-2020

• The following historical financial performance representations are based on the past performance of the System’s existing outlets. The tables below disclose Gross Billings of franchised outlets that have been open and operating for the entire designated period.

2017

• High:  $5,439,884
• Low:  $126,612
• Median:  $727,781
• Average:  $1,012,264
• Number at or Above Average:  14 of 50 (28.0%)

2018

• High:  $6,138,975
• Low:  $69,400
• Median:  $889,967
• Average:  $1,119,459
• Number at or Above Average:  22 of 62 (35.5%)

2019

• High:  $6,274,246
• Low:  $168,206
• Median:  $892,229
• Average:  $1,302,042
• Number at or Above Average:  27 of 70 (38.6%)

2020

• High:  $7,073,075
• Low:  $109,089
• Median:  $1,170,065
• Average:  $1,523,294
• Number at or Above Average:  29 of 75 (38.7%)

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

• The term “Gross Billings” means the aggregate of all revenues and other income from whatever source derived (whether in the form of cash, credit, agreements to pay, or other consideration and whether or not payment is received at the time of sale or any of these amounts prove uncollectible), which arise from or are derived by you or by any other person from business conducted by, or which originated from the business. Gross Billings also include all proceeds from any business interruption insurance.

• The following are excluded from Gross Billings: (i) sales taxes and other taxes separately stated that are collected from clients and paid to taxing authorities; (ii) refunds and credits made in good faith to arms’ length clients in accordance with Amada’s standards and specifications for issuing such refunds or deposits; and (iii) the discount value of any coupon, voucher, or other allowance that Amada authorizes at the time the franchisee redeems the client’s coupon, voucher, or allowance.

• Gross Billings disclosed in this Item are based upon reports that are generated by the reporting software used by Amada Senior Care Businesses throughout the System. Amada has not audited or independently verified the data contained in the reports.

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