In this FDD Talk post, you’ll learn the following:
- Section I – Estimated initial investment (franchise costs) for a Senior Helpers franchise, based on Item 7 of the company’s 2022 FDD
- Section II – Initial franchise fee, royalty fee, and marketing fee for a Senior Helpers franchise, based on Items 5 and 6 of the company’s 2022 FDD
- Section III – Number of franchised and company-owned Senior Helpers outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD
- Section IV – Background information on the Senior Helpers franchise opportunity, including relevant news updates
- Section V – Presentation and analysis of Senior Helpers’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:
- 2021 average, median, high, and low gross revenue for the 221 Senior Helpers franchised businesses that have been operating for 60 months or more as of December 31, 2021
- 2021 average, median, high, and low gross revenue for the 17 Senior Helpers franchised businesses that have been operating between 48 and 59 months as of December 31, 2021
- 2021 average, median, high, and low gross revenue for the 19 Senior Helpers franchised businesses that have been operating between 36 and 47 months as of December 31, 2021
- 2021 average, median, high, and low gross revenue for the 15 Senior Helpers franchised businesses that have been operating between 24 and 35 months as of December 31, 2021
- 2021 average, median, high, and low gross revenue for the 16 Senior Helpers franchised businesses that have been operating between 12 and 23 months as of December 31, 2021
- Section VI – Key ratios, comparables, computations, and analyses for the Senior Helpers franchise opportunity (exclusive content for Platinum subscribers)
Section I – Senior Helpers Franchise Costs
- Senior Helpers franchise costs, based on Item 7 of the company’s 2022 FDD:
- Initial Franchise Fee: $55,000
- Travel and Living Expenses While Training: $1,500 to $3,000
- Lease, Utility, and Security Deposits: $3,000 to $4,000
- Leasehold Improvements: $2,500 to $6,500
- Promotional Items: $2,000 to $4,000
- Additional Staffing: $22,000 to $25,000
- Furniture, Fixtures, and Equipment (Including Computer System): $5,000 to $7,000
- Supplies: $700 to $1,500
- Initial Advertising: $3,000 to $6,000
- Business License and Permits: $0 to $12,500
- Legal and Professional Fees: $100 to $1,300
- Insurance: $3,500 to $5,000
- Recruitment: $1,000 to $2,000
- Additional Funds for 3 Months: $26,500 to $37,000
- Total Estimated Senior Helpers Franchise Costs: $125,800 to $169,800
Section II – Senior Helpers’ Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Senior Helpers’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
- Initial Franchise Fee: $55,000
- Royalty: during the first year of operation, 5% of the Gross Sales from the preceding two-week period. Following the first year of operation, the greater of 5% of the Gross Sales from the preceding two-week period, or the Minimum Periodic Royalty Payment.
- Marketing Fund: an amount up to 2% of your Gross Sales; currently, the greater of 1% of Gross Sales or $75 per billing period per territory
- Brand Management Fee: currently, $100 per two-week period per territory and will be $150 per two-week period per territory beginning July 1, 2022, but Senior Helpers may increase this amount upon 30 days advance written notice
Section III – Number of Franchised and Company-Owned Senior Helpers Outlets
- Outlets at the Start of the Year: 289
- Outlets at the End of the Year: 299
- Net Change: +10
- Outlets at the Start of the Year: 299
- Outlets at the End of the Year: 302
- Net Change: +3
- Outlets at the Start of the Year: 302
- Outlets at the End of the Year: 319
- Net Change: +17
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 4
- Net Change: -1
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 4
- Net Change: 0
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 5
- Net Change: +1
Section IV – Background Information on the Senior Helpers Franchise
18 Things You Need to Know About the Senior Helpers Franchise
Promotes Mari Baxter to Chief Operations Officer
1. In mid-July 2021, Senior Helpers announced the promotion of Mari Baxter to chief operations officer (COO). In her new role, Baxter is responsible for leading the company’s aggressive growth trajectory, strategic planning for future development, and external strategic partnerships. She oversees a national network of more than 300 Senior Helpers franchise locations throughout the U.S. and leads the company’s owners council, which is made up of 13 select franchisees.
2. Peter Ross, CEO of Senior Helpers, said, “We are thrilled to elevate Mari to the executive leadership team, and are confident her deep expertise in franchising will continue to bring our company to new operational heights while delivering against our mission to provide the highest quality, in-home senior care available in the marketplace today. In recent years, Mari has been instrumental in developing and shaping our industry-leading LIFE Profile assessment tool and Centers of Excellence training program.”
3. Baxter joined the Senior Helpers team in 2008 as a field operations manager when the franchisor had only 40 locations. As the network grew, she took on more responsibility and, in 2012, was named vice president of operations. Previously, Baxter worked in franchise operations with both Huntington Learning Centers and Kiddie Academy. She graduated with a bachelor’s degree in business and journalism from Central Michigan University, and was a member of the Sigma Kappa sorority.
4. Baxter said, “It was actually through Sigma Kappa’s national philanthropy that I was first introduced to Alzheimer’s Disease Research and developed a passion for working with Dementia and Alzheimer’s patients. My career in helping those who need care with Senior Helpers has been truly rewarding, and with the support of my team, we’ve been able to implement critical programs to ensure seniors are receiving the highest level of care to enrich their daily lives.”
Expands Corporate Store Footprint with Acquisition of Miller Home Care, LLC
5. In mid-September 2021, Senior Helpers announced that it had acquired Miller Home Care, LLC, a trusted Milwaukee-based provider of high-quality and affordable in-home care for over a decade. Previously a franchise location, the new corporate store in Milwaukee will be a center of excellence where Senior Helpers may incubate new programs, conduct staff trainings, and develop new service offerings to be rolled out to the company’s nationwide network, which currently includes more than 300 locally owned and operated franchises across the U.S.
6. Senior Helpers is owned by Advocate Aurora Enterprises, a subsidiary of Advocate Aurora Health, which has dual headquarters in Milwaukee and suburban Chicago.
7. Peter Ross, CEO of Senior Helpers, said, “On the heels of Senior Helpers’ acquisition by Advocate Aurora Enterprises in April, this strategic investment expands our corporate store footprint in the Greater Milwaukee area and joins our existing corporate store in Des Plaines, Illinois. This critical move allows us to collectively work together in an established Advocate Aurora Heath market to further enable our growth strategy, while creating a model for us to collectively coordinate care across the full continuum.”
8. Scott Powder, president of Advocate Aurora Enterprises, said, “We applaud this strategic investment by our partner Senior Helpers to develop and help maximize our future synergies here in Milwaukee and throughout the Midwest. Advocate Aurora is dedicated to meeting people where they are in every stage of their health and wellness journey, and this move both bolsters our ability to work together and enables new opportunities for aging seniors in Milwaukee to thrive safely in the comfort of their homes.”
9. Miller Home Care, LLC was formerly owned by James (Jamie) Miller along with his wife, Felicia. Jamie Miller is also known among the Milwaukee community for owning and operating the Bankruptcy Law Firm of Miller & Miller. The new location represents Senior Helpers’ fifth corporate owned store.
Earns Coveted Great Place to Work Certification for Fourth Consecutive Year
10. In early June 2022, Senior Helpers announced that it had achieved the prestigious Great Place to Work certification for the fourth consecutive year. As the first national in-home care company to be awarded this distinction in 2019, Senior Helpers’ rapidly growing business is dedicated to continually providing safe, quality, and compassionate care to older adults, helping to alleviate the stresses associated with caregiving for seniors and their families.
11. Peter Ross, CEO of Senior Helpers, said, “It’s extremely rewarding for the entire organization to see our commitment to creating a positive culture come to light through obtaining the Great Place to Work certification for the fourth time. At Senior Helpers, we strive to create a workplace environment built upon the values of inclusion, appreciation, respect and compassion, and we’re thrilled to know that our employees consistently report having a positive experience. Ultimately, our employees are the ones who drive us forward and we truly believe that caring for them allows them to provide the best care for our seniors.”
12. Senior Helpers was granted this prominent designation by Great Place to Work for the fourth year in a row after undergoing a rigorous, data-driven evaluation which considers more than 60 elements of the team member experience derived from surveys and feedback from more than 12,000 employees, regardless of their role in the organization.
13. This highly regarded honor evaluates employee pride and camaraderie, as well as the company’s overall community impact, and will help Senior Helpers to attract new talent and new clients. The belief that each employee’s work makes a true difference for clients, and the recognition that the time and care team members put in everyday has special meaning, is especially critical to the assessment process.
14. According to Dr. Jacquelyn Kung of Great Place to Work’s senior care affiliate, Activated Insights, “We applaud Senior Helpers for seeking certification and releasing its employees’ feedback. This honor measures Senior Helpers’ capacity to earn the trust of its employees while creating a supportive workplace that fosters collaboration and high performance.”
15. Senior Helpers was founded in 2001 by Tony Bonacuse and Peter Ross in Timonium, Maryland. Both Bonacuse and Ross had firsthand experience caring for family members and understood the need for senior care that is professional, compassionate, and comprehensive. While looking for care for their own relatives, they both found that many caregivers didn’t respond to their inquiries, or seemed to lack professionalism or passion for their work. Together, Bonacuse and Ross set out to address the deficiencies in this industry and provide a trustworthy and professional level of care to senior citizens.
16. The first Senior Helpers opened in 2002 in Baltimore. As Bonacuse and Ross suspected, many people were seeking the kind of high quality care they were offering. Bonacuse and Ross began franchising Senior Helpers in 2004 and opened the first franchised location in Orange County, California. Senior Helpers continued to grow around the United States over the next decade.
17. In 2016, Senior Helpers was acquired by private equity firm Altaris Capital for $125 million from Los Angeles-based PE firm Levine Leichtman Capital Partners (LLCP), which had owned Senior Helpers since 2012. Today, there are Senior Helpers locations around the U.S., Canada, and Australia.
Entrepreneur’s Franchise 500
18. Senior Helpers ranked No. 195 on Entrepreneur’s 2022 Franchise 500 list.
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Senior Helpers Franchise (Item 19, 2022 FDD)
- Presented below are the gross revenue figures for some franchised Senior Helpers Care Businesses in 2021.
- The information below contains data for certain franchised Senior Helpers Care Businesses that have been operating for at least 12 months as of December 31, 2021. The information is organized into five categories:
- (a) franchised businesses that have been operating for 60 months or more as of December 31, 2021;
- (b) franchised businesses that have been operating between 48 and 59 months as of December 31, 2021;
- (c) franchised businesses that have been operating between 36 and 47 months as of December 31, 2021;
- (d) franchised businesses that have been operating between 24 and 35 months as of December 31, 2021; and
- (e) franchised businesses that have been operating between 12 and 23 months as of December 31, 2021.
- The results from some franchised Senior Helpers Care Businesses were not included in the table below; please see the notes that follow for an explanation.
Franchised Senior Helpers Care Businesses: 2021 Gross Revenue (Unaudited)
Franchised Businesses (Open 60+ Months)
- Number of Franchised Businesses (Open 60+ Months): 221
- Range of Gross Revenue: $40,862 to $5,914,742
- Average Annual Gross Revenue: $1,229,889
- Median Annual Gross Revenue: $970,830
- Number of Franchised Businesses Greater Than Average: 79 (35%)
Franchised Businesses (Open 48-59 Months)
- Number of Franchised Businesses (Open 48-59 Months): 17
- Range of Gross Revenue: $110,417 to $2,845,982
- Average Annual Gross Revenue: $1,137,732
- Median Annual Gross Revenue: $927,364
- Number of Franchised Businesses Greater Than Average: 7 (41%)
Franchised Businesses (Open 36-47 Months)
- Number of Franchised Businesses (Open 36-47 Months): 19
- Range of Gross Revenue: $85,970 to $1,935,381
- Average Annual Gross Revenue: $901,001
- Median Annual Gross Revenue: $751,270
- Number of Franchised Businesses Greater Than Average: 9 (47%)
Franchised Businesses (Open 24-35 Months)
- Number of Franchised Businesses (Open 24-35 Months): 15
- Range of Gross Revenue: $116,666 to $1,312,216
- Average Annual Gross Revenue: $508,484
- Median Annual Gross Revenue: $398,090
- Number of Franchised Businesses Greater Than Average: 6 (40%)
Franchised Businesses (Open 12-23 Months)
- Number of Franchised Businesses (Open 12-23 Months): 16
- Range of Gross Revenue: $68,130 to $611,486
- Average Annual Gross Revenue: $314,986
- Median Annual Gross Revenue: $317,860
- Number of Franchised Businesses Greater Than Average: 8 (50%)
- “Gross Revenue” represents the actual gross revenue for each franchised business in the sample for the period January 1, 2021 to December 31, 2021, as reported by franchisees to Senior Helpers. Included in gross revenue are all revenues from the offer and sales of all services (and products) to customers and clients of each franchised business in the sample.
- The gross revenue figures are compiled by using sales that are reported to Senior Helpers by franchisees. Senior Helpers has not audited or verified the reports, nor have franchisees confirmed that their reports are prepared in accordance with generally accepted accounting principles.
- “Average Annual Gross Revenue” is the total Gross Revenue for the franchised Senior Helpers Care Businesses in the sample, divided by the number of franchised Senior Helpers Care Businesses in the sample.
- “Median Annual Gross Revenue” is the Annual Gross Revenue figure for which one-half of the sample had Gross Revenue greater than this figure, and one-half of the sample had less than the figure.
- This Item 19 presents information for each of the franchised Senior Helpers Care Businesses that have been in operation more than 12 months. To avoid any skewing of data due to seasonality, revenues that may be generated from grand opening advertising or promotion, or effects (positive or negative) from start-up operations, the sample includes only franchisees who were operating during the entire 2021 calendar year and who were also operating for at least 12 months.
- As a result, the data in the table above includes a total of 288 franchised businesses.
- From the period January 1, 2021 to December 31, 2021, 12 Senior Helpers Care Businesses closed or were otherwise acquired by Senior Helpers’ affiliate and as a result are not included in this Item 19 information.
- From the period January 1, 2021 to December 31, 2021, one Senior Helpers Care Business closed after being open less than 12 months.
- As part of your due diligence, you are welcome and encouraged to speak to Senior Helpers’ existing franchisees about any or all of their operations.
- The data in the charts have been separated into five categories of results for:
- (a) newer franchised businesses (those who have been operating for between 12 and 23 months);
- (b) franchised businesses that have been operating for between 24 and 35 months;
- (c) franchised businesses that have been operating for between 36 and 47 months;
- (d) franchised businesses that have been operating for between 48 and 59 months; and
- (e) more seasoned franchised businesses that have been operating for 60 months or more.
- Senior Helpers has divided the franchised business data as noted because it has found that length of operation has a bearing on the results of a Senior Helpers Care Business due to the recurring nature of the clients and revenues from the business.
- The chart does not include any estimate of, or specific or historic data regarding, costs, expenses, or debts that franchised businesses have incurred, or may in the future incur. Prospective franchisees should be aware that in evaluating a financial performance representation or an earnings claim that includes revenue or sales figures, or one that does not include any or all costs of goods sold, operating expenses, and other expenses, that costs and expenses must be deducted from the gross revenue or gross sales figures to obtain net income or profit. This Item 19 financial performance representation does not include net income or profit.
- Senior Helpers cannot predict or project your costs and expenses. Costs and expenses that you may incur in the operation of your Senior Helpers Care Business include, among others, labor costs; any payments, compensation, or owner draws provided to the franchisee or the owner of the franchisee entity; marketing expenses; rent, mortgage, or other debt/financing costs; computer upgrades; legal and professional fees; income and other non-real estate taxes; royalty fees; and various other expenses.
- You will incur these and other costs, and you should conduct an independent investigation of the costs and expenses you will or may incur in operating your franchised Senior Helpers Care Business. Franchisees or former franchisees listed in the disclosure document may be one source of this information. Franchisees are not required to report this data to Senior Helpers, and Senior Helpers does not have these operating costs for franchisees.
- You are strongly encouraged to consult with your own financial advisors in reviewing the table and, in particular, in estimating your sales that you may achieve in operating your own Senior Helpers Care Business.
- Actual costs, expenses, and revenues vary from business to business, and from franchisee to franchisee. Senior Helpers cannot estimate the results of any specific business or franchisee. Some franchised businesses have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.