In this FDD Talk post, you’ll learn the following:
- Section I – Estimated initial investment (franchise costs) for a Synergy HomeCare franchise, based on Item 7 of the company’s 2022 FDD
- Section II – Initial franchise fee, royalty fee, and marketing fee for a Synergy HomeCare franchise, based on Items 5 and 6 of the company’s 2022 FDD
- Section III – Number of franchised and company-owned Synergy HomeCare 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 Synergy HomeCare franchise opportunity, including relevant news updates
- Section V – Presentation and analysis of Synergy HomeCare’s 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, maximum, and minimum gross sales per business for the 96 multi-unit franchised Synergy HomeCare businesses (operating 284 franchised units) that have been in operation for 1 year or more as of December 31, 2021
- 2021 average, median, maximum, and minimum gross sales per business for the 45 single-unit franchised Synergy HomeCare businesses that have been in operation for 1 year or more as of December 31, 2021
- Section VI – Key ratios, comparables, computations, and analyses for the Synergy HomeCare franchise opportunity (exclusive content for Platinum subscribers)
Section I – Synergy HomeCare Franchise Costs
- Synergy HomeCare franchise costs, based on Item 7 of the company’s 2022 FDD:
- Franchise Fee: $50,000
- Real Estate/Rent: $1,285 to $5,885
- Utility Deposits: $0 to $320
- Leasehold Improvements: $0 to $1,600
- Furniture, Fixtures, and Equipment: $535 to $3,200
- Software: $802 to $1,070
- Computers and Printer: $1,070 to $3,745
- Insurance (including Fidelity/Crime Coverage): $3,210 to $6,420
- Signage: $535 to $2,140
- Office Equipment and Supplies: $802 to $3,210
- Training: $1,070 to $2,675
- Licenses and Permits: $0 to $5,350
- Legal and Accounting: $535 to $3,210
- Legal and Compliance Toolkit: $1,000
- Opening Inventory: $4,237 to $6,037
- Dues and Subscriptions: $0 to $535
- Additional Funds – 3 Months: $4,205 to $34,515
- Total Estimated Synergy HomeCare Franchise Costs: $69,286 to $130,912
Section II – Synergy HomeCare’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Synergy HomeCare’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
- Franchise Fee: $50,000
- Royalty Fee: 5% of Gross Sales
- Minimum Royalty Fee: the difference between (a) 5% of Gross Sales from the prior month, and (b) the Royalty Fee that would have been payable had you obtained the Minimum Sales Quota
- Marketing Fund Contribution: 2% of Gross Sales
- Minimum Marketing Fund Contribution Fee: the difference between (a) 2% of Gross Sales from the prior month, and (b) the Royalty Fee that would have been payable had you obtained the Minimum Sales Quota
- Minimum Local Advertising Requirement: the greater of $300 or at least 2% of Gross Sales per month
- Advertising Service Fees and Costs: Synergy’s then-current fee (which now is $250 per month), plus the cost to use an advertising firm in your Protected Territory
Section III – Number of Franchised and Company-Owned Synergy HomeCare Outlets
Franchised
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
2021
- Outlets at the Start of the Year: 364
- Outlets at the End of the Year: 406
- Net Change: +42
Company-Owned
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
2021
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- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – Background Information on the Synergy HomeCare Franchise
17 Things You Need to Know About the Synergy HomeCare Franchise
Announces New Partnership with the Defense Department
1. In late October 2021, Synergy HomeCare announced that it was one of 45 new employer partners who participated in the Department of Defense’s Military Spouse Employment Partnership (MSEP) virtual induction ceremony that featured Dr. Jill Biden, First Lady of the United States. The MSEP connects military spouses with hundreds of partner employers who commit to recruit, hire, promote, and retain military spouses.
2. Since its inception in 2011, MSEP employers have hired more than 200,000 military spouses. When it launched, MSEP was part of the White House’s Joining Forces initiative. The MSEP continues to be a key element of the Joining Forces initiative to increase economic opportunity and mobility for military families.
3. Synergy HomeCare’s open job positions around the nation will now appear in the MSEP career portal exclusive to military families. The MSEP will also lead training sessions for Synergy HomeCare franchisees on how to best reach military families with employment opportunities, including those in traditional military markets.
4. Charlie Young, CEO of Synergy HomeCare, said, “We have a long history of providing care to members of our nation’s military community and take great pride in allowing our clients and their families to live richer lives. We also recognize the tremendous sacrifice that our military families make each day on behalf of our country. Because of frequent PCS (permanent change of station) moves and a need for flexible hours, many military spouses are unable to find and maintain employment. We have many currently working with our franchisees and their mission-driven attitude and desire to make a difference is visible.”
Bolsters Leadership Team with Two New Positions
5. In mid-December 2021, Synergy HomeCare announced two strategic leadership appointments to support the rapidly expanding system and better position the organization to evolve in a dynamic industry. Mike Steed was promoted to chief growth officer while franchise industry expert Jennifer Chasteen was named chief marketing officer. Both will report to Chief Executive Officer Charlie Young.
6. Steed, who has served as vice president of franchise development with Synergy HomeCare since 2019, will now also oversee operations with a focus on franchisee onboarding, support, education, recruiting/retention, and growth. Steed is a seasoned franchise professional with leadership experience in sales and operations at such brands as Starbucks, Mathnasium, and New Horizons Computer Learning Centers.
7. Chasteen comes to Synergy HomeCare with more than 20 years in franchising. Most recently, she headed U.S. marketing at Church’s Chicken, a 1,000+ unit franchise system, and was responsible for new product innovation, consumer promotions, traditional and digital advertising, and field team activation. She previously held executive marketing roles at The Honey Baked Ham Co. and Domino’s Pizza. She will lead all aspects of Synergy HomeCare marketing initiatives, with a focus on growing consumer engagement and awareness along with franchisee revenue.
8. Charlie Young, CEO of Synergy HomeCare, said, “Growth is exciting and positive, but also brings different needs. We must scale appropriately in order to increasingly deliver the levels of service our franchise partners need to grow their businesses. These organizational changes reflect our commitment to fueling growth at all levels. We will continue to provide our franchisees with tools and systems to increase operational effectiveness and efficiency, powerful referral partnerships to build their client base as well as sophisticated, differentiated marketing to ensure Synergy HomeCare is a first-choice provider of home care across the nation.”
Partners with Ageless Innovation to Support Clients Experiencing Social Isolation and Cognitive Decline
9. At the beginning of December 2021, Synergy HomeCare announced a partnership with Ageless Innovation to offer Joy for All Companion Pets to combat social isolation and cognitive decline among older adults. Synergy HomeCare used the backdrop of November’s National Alzheimer’s Disease Awareness Month to launch a pilot with franchisees involving the use of companion animatronic cats and dogs for individuals experiencing social isolation, memory loss, or cognitive decline.
10. Ageless Innovation was founded in 2018 by a team of former Hasbro employees who aimed to promote the Joy for All brand that provides joy, fun, play, and comfort to the older adult market, while focusing on improving quality of life for aging loved ones, their families and caregivers.
11. Developed with extensive input from older adults, Joy for All Companion Pets look, sound, and feel like real pets – without the responsibilities of pet ownership. Multiple clinical studies have shown that Joy for All Companion Pets enhance the well-being, sense of purpose and quality of life of individuals living with dementia. They have also helped alleviate agitation, social isolation, depression, and expressions of sadness among older adults. The partnership with Ageless Innovation is a component of Synergy HomeCare’s memory care program that supports clients living with Alzheimer’s or related dementias.
12. Rich Paul, chief partner officer of Synergy HomeCare, said, “Loneliness during the aging process has been an issue faced by older adults for many years but has been exacerbated throughout the pandemic. We have also seen an uptick in clients with dementia and memory-related concerns and we continue to provide our franchisees with best-in-class resources to assist in their client’s care. Ageless Innovation’s animatronic pets can play a role in improving cognitive decline, lifting spirits and helping to remind aging adults of fond memories they may have shared with their pets.”
13. Ted Fischer, co-founder and CEO of Ageless Innovation, added, “Like Synergy HomeCare, part of our mission at Ageless Innovation is to provide older adults with a sense of comfort and companionship. We recognize that caregivers across the globe work tirelessly to do the same for their clients and family members each and every day, and we hope the use of our Joy for All Companion Pets can aid in that heroic effort.”
Company History
14. Synergy HomeCare was founded in 2001 by Peter Tourian in Gilbert, Arizona. Tourian had already been in the medical industry for several years. In the 1990s, he founded Synergy Staffing, a medical staffing company. While running Synergy Staffing, Tourian saw that there was a need for high quality non-medical home care. He felt that 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 wanted to offer a better solution to in-home care services.
15. After realizing he wanted to do things better, Tourian spent a few years developing Synergy HomeCare and tested the systems over and over again until he felt ready to start franchising the concept. The first franchised location opened in 2005 and Synergy quickly grew to 100 locations.
16. In 2018, Synergy HomeCare was acquired by NexPhase Capital, LP. Today, there are Synergy HomeCare franchises around the U.S.
Entrepreneur’s Franchise 500
17. Synergy HomeCare ranked No. 416 on Entrepreneur’s 2022 Franchise 500 list.
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Synergy HomeCare Franchise (Item 19, 2022 FDD)
- 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, 2021, there were a total of 162 Synergy HomeCare Businesses in operation with a total of 362 Units.
- The following is a statement of the “Average Annual Gross Sales” of 141 Synergy HomeCare Businesses consisting of 329 Units that have been in operation for 1 year or more as of December 31, 2021, for the period from January 1, 2021 to December 31, 2021.
- Twenty Synergy HomeCare Businesses, consisting of 32 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, 2021 or the businesses closed during the 2021 calendar year.
- One other Synergy HomeCare business, consisting of 1 unit, was not included in the information below because it was a “mini” territory with less than 20,000 seniors age 65 or older.
- “Average Annual Gross Sales” was calculated by taking the total Gross Sales reported for each Synergy HomeCare Business by a franchisee during the 2021 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, 45 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: 10 Years
- Number of Synergy HomeCare Businesses: 37
- Average Annual Gross Sales Per Business: $2,125,456
- Median Annual Gross Sales Per Business: $1,737,634
- Maximum Annual Gross Sales Per Business: $4,788,724
- Minimum Annual Gross Sales Per Business: $277,087
- 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: $1,784,021
- Median Annual Gross Sales Per Business: $1,356,689
- Maximum Annual Gross Sales Per Business: $8,146,096
- Minimum Annual Gross Sales Per Business: $8,980
- Average Gross Profit Margin: 49%
Number of Years in Operation: 1 to 5 Years
- Number of Synergy HomeCare Businesses: 21
- Average Annual Gross Sales Per Business: $1,057,937
- Median Annual Gross Sales Per Business: $747,588
- Maximum Annual Gross Sales Per Business: $5,781,117
- Minimum Annual Gross Sales Per Business: $161,249
- Average Gross Profit Margin: 50%
Single-Unit Franchise Businesses
Number of Years in Operation: 10 Years
- Number of Synergy HomeCare Businesses: 15
- Average Annual Gross Sales Per Business: $1,518,813
- Median Annual Gross Sales Per Business: $1,275,911
- Maximum Annual Gross Sales Per Business: $4,277,106
- Minimum Annual Gross Sales Per Business: $186,118
- Average Gross Profit Margin: 49%
Number of Years in Operation: 6 to 9 Years
- Number of Synergy HomeCare Businesses: 14
- Average Annual Gross Sales Per Business: $1,021,460
- Median Annual Gross Sales Per Business: $541,706
- Maximum Annual Gross Sales Per Business: $3,689,538
- Minimum Annual Gross Sales Per Business: $285,600
- Average Gross Profit Margin: 48%
Number of Years in Operation: 1 to 5 Years
- Number of Synergy HomeCare Businesses: 16
- Average Annual Gross Sales Per Business: $515,894
- Median Annual Gross Sales Per Business: $415,982
- Maximum Annual Gross Sales Per Business: $1,375,971
- Minimum Annual Gross Sales Per Business: $78,534
- 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.
Section VI – Synergy HomeCare Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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