Assisted Living Locators Franchise: Average Sales ($130K) vs. Cost ($74K-$94K)

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

Section I – Estimated initial investment (franchise costs) for an Assisted Living Locators franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Assisted Living Locators franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Assisted Living Locators 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 – News updates on the Assisted Living Locators franchise opportunity

Section V – Presentation and analysis of Assisted Living Locators’ 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, highest, and lowest gross invoiced revenues, by quartile, for the 75 Assisted Living Locators franchisees that have been open and operating for the entire 2021 calendar year (excluding temporary closures due to COVID-19) and been operated and managed by 1 or more owners of the franchise on a full-time basis

• 2021 average, median, highest, and lowest gross collected revenues, by quartile, for the 75 Assisted Living Locators franchisees that have been open and operating for the entire 2021 calendar year (excluding temporary closures due to COVID-19) and been operated and managed by 1 or more owners of the franchise on a full-time basis

Section VI – Key ratios, comparables, computations, and analyses for the Assisted Living Locators franchise opportunity (exclusive content for Platinum subscribers)

Section I – Assisted Living Locators Franchise Costs

• Assisted Living Locators franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,500
• Business Set-Up Fee:  $10,000
• Food, Lodging, and Travel (1 person while training):  $1,000 to $1,500
• Real Estate, Buildout, and Improvements:  not applicable
• Furniture and Furnishings (for home office):  $0 to $500
• Technology Systems:  $0 to $3,000
• Technology Fees (pre-opening):  $495 to $844
• Marketing Fees (pre-opening):  $3,000
• Utility Deposits:  $0 to $300
• Certified Senior Advisor (CSA) Certification Fee:  $990 to $1,090
• Dementia Care Certification Fee:  $0 to $125
• Business Licenses:  $50 to $1,000
• Professional Fees:  $300 to $3,000
• Vehicle (title, registration, deposit, and 3 lease payments):  $0 to $5,000
• Vehicle “Wraps” (optional):  $0 to $2,800
• Insurance (12 months’ premium):  $1,700 to $2,600
• Additional Funds (3 months):  $7,200 to $10,200
• Total Estimated Assisted Living Locators Franchise Costs:  $74,235 to $94,459

Section II – Assisted Living Locators’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Assisted Living Locators’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,500
• Royalty Fee:  greater of (a) 8% of Gross Collected Revenues or (b) the minimum royalty fee (ranging from $0 per month for months 1 and 2, to $1,400 per month for months 37 through end of term)
• Marketing Fee:  $1,000 per month for 2nd through 5th full month after opening date, and $500 per month for remainder of term
• Brand and System Development Fund Fee:  greater of (a) 2% of Gross Collected Revenues or (b) the minimum brand fund contribution ($300 per month)

Section III – Number of Franchised and Company-Owned Assisted Living Locators Outlets

Franchised

2019

• Outlets at the Start of the Year:  102
• Outlets at the End of the Year:  125
• Net Change:  +23

2020

• Outlets at the Start of the Year:  125
• Outlets at the End of the Year:  129
• Net Change:  +4

2021

• Outlets at the Start of the Year:  129
• Outlets at the End of the Year:  130
• Net Change:  +1

Company-Owned

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2020

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  6
• Net Change:  +3

2021

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  3
• Net Change:  -3

Section IV – News Updates on the Assisted Living Locators Franchise

• Assisted Living Locators Looks Forward to Continued Growth

• Executive Home Care Continues Growth With Acquisition of Assisted Living Locators

• Riverside Finds Perfect Home for Latest Franchise Investment

• Assisted Living Locators Named to 2022 FranServe’s Fantastic 500

• Assisted Living Locators Awards Top Franchisees for Their Success

• Assisted Living Locators Sets New Monthly Record in Franchise Growth

• Assisted Living Locators Did Not Rank on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Assisted Living Locators Franchise (Item 19, 2022 FDD)

• The following presents certain financial performance information for the 12-month period of time commencing January 1, 2021 and ending December 31, 2021 (the “Measuring Period”) for each franchisee that met certain qualifying criteria. The franchisor did not include data for any Assisted Living Locators Business owned by the franchisor or its affiliates.

• In order to be included (a “qualifying franchisee”), the franchisee must have: (a) been open and operating for the entire 2021 calendar year (excluding temporary closures due to COVID-19); and (b) been operated and managed by 1 or more owners of the franchise on a full-time basis.

• The financial performance representation does not include data for any franchised outlets that are not managed by at least 1 franchise owner on a full-time basis (i.e., passive ownership). Assisted Living Locators no longer allows passive ownership under its current franchise model.

• As of December 31, 2021, there were 96 franchisees open and operating (with a total of 130 territories), and 75 of these franchisees are qualifying franchisees.

• Of the 96 franchisees that were open as of December 31, 2021, 21 were not qualifying franchisees for the following reasons:

• 13 franchisees were excluded because they were not open for the entire Measuring Period (this does not include the franchisee that both opened and closed in 2021);
• 8 franchisees were excluded due to passive ownership (including for business reasons or for health reasons precluding active participation by the owner).

• There are no material differences between the operations of the Assisted Living Locators Businesses operated by the franchisees whose data has been included and the franchised business offered under the Disclosure Document.

• For purposes of this financial performance representation, each franchisee is considered a separate “outlet,” although some franchisees operate multiple territories (meaning the reported revenues may be higher than a franchisee operating in a single territory). Some franchisees who own and operate multiple territories may focus their initial development on their primary territory during the initial years of the franchise, with the result that the undeveloped territories may generate substantially lower revenues.

• Of the 75 franchisees whose data was included, 23 franchisees operate multiple territories.

• In the financial performance representation, Assisted Living Locators also broke down the results by quartile. Quartile 1 (highest performers) included 18 outlets, Quartile 2 included 19 outlets, Quartile 3 included 19 outlets, and Quartile 4 included 19 outlets.

• Assisted Living Locators allocated franchisees between the 4 Quartiles based on Gross Invoiced Revenues (not Gross Collected Revenues). In some cases, a franchisee listed in a particular Quartile based on Gross Invoiced Revenues would have been placed in a different Quartile if the Quartiles were measured based on Gross Collected Revenues.

• “Gross Invoiced Revenues” means the total amount of revenues invoiced, including (a) amounts that were not collected during the calendar year, or a reduction in fee due to a short-term stay or move-out, (b) amounts that could not be collected due to a client’s death or for any other reason. The term Gross Invoiced Revenues does not include any sales or use taxes. The total amount of Gross Collected Revenues may be materially less than the total amount of Gross Invoiced Revenues.

• “Gross Collected Revenues” means all gross sums collected by the franchised Assisted Living Locators Business, such as revenues from the sale or provision of goods or services, proceeds from business interruption insurance, and referral fees collected, including referral fees paid by Referral Sources, Senior Care Providers, other Assisted Living Locators Businesses (such as fee splits under Assisted Living Locators’ Referral Program), or Assisted Living Locators (such as fee splits relating to a Regional Account).

• Gross Collected Revenues includes any Gross Collected Referral Proceeds. With respect to fees generated through Assisted Living Locators’ Referral Program, Gross Collected Revenues only includes the franchisee’s share of the placement fee collected by the franchisee.

• Gross Collected Revenues excludes the following amounts:

• any referral fee the franchisee pays Assisted Living Locators for a Corporate Lead;
• any placement fee the franchisee collects but pays to another Assisted Living Locators Business under Assisted Living Locators’ Referral Program;
• any sales or use tax the franchisee collects and pays to the applicable taxing authority;
• the wholesale price paid by the franchisee for any merchandise or other retail items that it sells (Gross Collected Revenues includes the difference between the retail price received from the sale of the item and the wholesale price that the franchisee paid for the item).

• The following table presents the Gross Invoiced Revenues generated during 2021 by the qualifying franchisees described above:

Part 1 – 2021 Gross Invoiced Revenues

Quartile 1 (18 franchisees)

• Lowest:  $165,194
• Highest:  $900,539
• Median:  $314,115
• Average:  $375,845
• Number and Percent That Achieved/Surpassed Average:  8 of 18 (44.4%)
• Average Gross Revenues Per Territory:  $250,564

Quartile 2 (19 franchisees)

• Lowest:  $109,379
• Highest:  $162,290
• Median:  $138,485
• Average:  $137,430
• Number and Percent That Achieved/Surpassed Average:  10 of 19 (52.6%)
• Average Gross Revenues Per Territory:  $100,429

Quartile 3 (19 franchisees)

• Lowest:  $70,246
• Highest:  $105,221
• Median:  $83,851
• Average:  $84,399
• Number and Percent That Achieved/Surpassed Average:  8 of 19 (42.1%)
• Average Gross Revenues Per Territory:  $61,676

Quartile 4 (19 franchisees)

• Lowest:  $2,118
• Highest:  $68,713
• Median:  $43,552
• Average:  $38,944
• Number and Percent That Achieved/Surpassed Average:  12 of 19 (63.2%)
• Average Gross Revenues Per Territory:  $33,633

All (75 franchisees)

• Lowest:  $2,118
• Highest:  $900,539
• Median:  $105,221
• Average:  $156,265
• Number and Percent That Achieved/Surpassed Average:  21 of 75 (28%)
• Average Gross Revenues Per Territory:  $116,039

Part 2 – 2021 Gross Collected Revenues

• The following table presents the Gross Collected Revenues generated during 2021 by the qualifying franchisees described above:

Quartile 1 (18 franchisees)

• Lowest:  $128,311
• Highest:  $709,446
• Median:  $256,727
• Average:  $303,237
• Number and Percent That Achieved/Surpassed Average:  7 of 18 (38.9%)
• Average Gross Revenues Per Territory:  $202,158

Quartile 2 (19 franchisees)

• Lowest:  $99,069
• Highest:  $151,678
• Median:  $119,916
• Average:  $121,561
• Number and Percent That Achieved/Surpassed Average:  9 of 19 (47.4%)
• Average Gross Revenues Per Territory:  $88,833

Quartile 3 (19 franchisees)

• Lowest:  $52,941
• Highest:  $105,707
• Median:  $72,080
• Average:  $71,194
• Number and Percent That Achieved/Surpassed Average:  10 of 19 (52.6%)
• Average Gross Revenues Per Territory:  $52,026

Quartile 4 (19 franchisees)

• Lowest:  $2,118
• Highest:  $65,707
• Median:  $39,640
• Average:  $33,515
• Number and Percent That Achieved/Surpassed Average:  11 of 19 (57.9%)
• Average Gross Revenues Per Territory:  $28,945

All (75 franchisees)

• Lowest:  $2,118
• Highest:  $709,446
• Median:  $94,438
• Average:  $130,099
• Number and Percent That Achieved/Surpassed Average:  22 of 75 (29.3%)
• Average Gross Revenues Per Territory:  $96,608

• In making the above financial performance representation, Assisted Living Locators has relied upon reports submitted to it by its franchisees. Neither Assisted Living Locators nor any independent certified public accountant has independently audited or verified the information.

• The financial performance representation does not include any expense information. As a franchisee, you will incur a variety of expenses, such as payroll expenses (if you have employees or independent contractors), marketing expenses, gas, vehicle expenses, utilities, as well as the initial and ongoing fees imposed under the Franchise Agreement.

• Some Assisted Living Locators businesses have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Assisted Living Locators Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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