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

Section I – Estimated initial investment (franchise costs) for a Homewatch CareGivers franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Homewatch CareGivers franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Homewatch CareGivers 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 Homewatch CareGivers franchise opportunity

Section V – Presentation and analysis of Homewatch CareGivers’ 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 per territory and per franchisee for the 90 Homewatch CareGivers franchisees representing 176 territories that were in operation for the entire 2021 fiscal year

• aggregate gross revenue growth between calendar years 2020 and 2021 for the 90 Homewatch CareGivers franchisees that were in business and reporting gross revenue as of December 31, 2020 and as of December 31, 2021

• 2016-2021 systemwide sales and year-over-year growth percentage for the Homewatch CareGivers franchisees that were in business during the applicable year

• 2021 average, median, high, and low gross revenue for the 80 Homewatch CareGivers franchisees who reported gross revenue greater than $0 in all 12 months of 2021 and had been in business for at least 3 years as of December 31, 2021

• 2021 average number of clients per month and percentage of gross revenue by hours of care (24 hours care, 12-23 hours care, 3-11 hours care, 2 or less hours care) for 88 Homewatch CareGivers franchisees who used the centralized practice management software system Homewatch CareGivers Care+ (“Care+”) for all months during 2021 and who were in business as of the end of 2021

• 2021 average direct caregiver costs for 36 Homewatch CareGivers franchisees who (i) used the financial aggregation and benchmarking vendor, Qvinci, (ii) had completed and submitted to Homewatch CareGivers their financial statements for 2021, and (iii) were in business for at least 2 years as of December 31, 2021 (based on their first reported month with gross revenue greater than $0)

• 2021 average and median number of caregivers on shift per week and number of hours per caregiver per week for 90 Homewatch CareGivers franchisees operating 176 territories that used Care+ practice management software

• 2021 revenue mix (private pay and government) for 90 Homewatch CareGivers franchisees operating 185 territories that reported gross revenue in 2021 at any time during the 2021 fiscal year and were operating as of December 31, 2021 using Care+

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

Section I – Homewatch CareGivers Franchise Costs

• Homewatch CareGivers franchise costs, based on Item 7 of the company’s 2022 FDD:

• Franchise Fee:  $50,000
• Telephone System:  $250 to $500
• Training Expenses:  $2,000 to $5,000
• Office Equipment and Computer Hardware and Off-the-Shelf Software:  $1,060 to $4,500
• Lease and Security Deposits:  $3,000 to $8,000
• Office Furniture:  $1,000 to $3,500
• Insurance:  $8,000 to $18,000
• Compliance Toolkit Fee:  $1,500
• Licenses, Permits, and Professional Fees:  $500 to $8,000
• Additional Funds for 3 Months:  $25,000 to $55,000
• Total Estimated Homewatch CareGivers Franchise Costs:  $91,810 to $177,750

Section II – Homewatch CareGivers’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Franchise Fee:  $50,000
• Royalty Fee:  5% of Gross Revenue or the Minimum Royalty, whichever is greater. The Minimum Royalty is calculated as follows: Months 0-6: None; Months 7-12: $500; Months 13-24: $1,000; Months 25-36: $1,250; Months 37-48: $1,500; Months 49-60: $2,000; Months 61 and thereafter: $2,500
• Brand Fund Contribution:  currently, the contribution is based on your Gross Revenue for the calendar year and is payable according to the following schedule: 2% of the first $500,000 of Gross Revenue in the then-current calendar year; then 1.5% of Gross Revenue in excess of $500,000 and up to $1,000,000 in the then-current calendar year; then 1% of Gross Revenue in excess of $1,000,000 and up to $2,000,000 in the then-current calendar year; then 0.5% of Gross Revenue in excess of $2,000,000
• Local Marketing (“LM”) and/or Cooperative:  the greater of: (i) $1,500 a month; or (ii) 2% of your monthly Gross Revenue averaged over the past 12 months

Section III – Number of Franchised and Company-Owned Homewatch CareGivers Outlets

Franchised

2019

• Outlets at the Start of the Year:  174
• Outlets at the End of the Year:  185
• Net Change:  +11

2020

• Outlets at the Start of the Year:  185
• Outlets at the End of the Year:  198
• Net Change:  +13

2021

• Outlets at the Start of the Year:  198
• Outlets at the End of the Year:  212
• Net Change:  +14

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

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

Section IV – News Updates on the Homewatch CareGivers Franchise

• How Homewatch CareGivers Plans to ‘Create’ More Home-Based Care Workers

• Homewatch CareGivers’ Franchise Development Efforts Around Diversity

• Homewatch CareGivers Ranked No. 208 on Entrepreneur’s 2023 Franchise 500 List

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

• The charts below contain results of operations of Homewatch CareGivers franchised businesses located in the United States for the calendar year 2021 and calendar year 2020 (for purposes of Part 2), as reported to Homewatch CareGivers by its franchisees.

• As of December 31, 2021, there were a total of 116 Homewatch CareGivers franchisees (“Franchisees”) operating a total of 212 Territories. Some Franchisees may have added Territories during the 2021 fiscal year and those Territories are included in this presentation.

Part 1A – Gross Revenue by Years in Business, by Territory for the Fiscal Year Ended December 31, 2021

• Part 1 below presents information on 90 Franchisees representing 176 Territories that were in operation for the entire 2021 fiscal year.

• Excluded from these charts are 3 Franchisees (representing 3 Territories) who closed during the 2021 fiscal year, and 22 Franchisees (representing 27 Territories) who opened during the 2021 fiscal year and were in operation less than one year.

Years in Business:  1-2 Years

• Number of Franchisees in Group:  10
• Number of Territories in Group:  11
• Aggregate Gross Revenue:  $7,722,980
• Average Gross Revenue Per Territory in Group:  $702,089
• Median Gross Revenue of Territories in Group:  $382,821
• Highest Gross Revenue of Territories in Group:  $1,935,018
• Lowest Gross Revenue of Territories in Group:  $142,424
• Number of Territories Achieving or Exceeding Group Average:  4
• Percent of Territories Achieving or Exceeding Group Average:  36%

Years in Business:  2-3 Years

• Number of Franchisees in Group:  13
• Number of Territories in Group:  17
• Aggregate Gross Revenue:  $9,607,058
• Average Gross Revenue Per Territory in Group:  $565,121
• Median Gross Revenue of Territories in Group:  $464,501
• Highest Gross Revenue of Territories in Group:  $1,032,596
• Lowest Gross Revenue of Territories in Group:  $190,591
• Number of Territories Achieving or Exceeding Group Average:  6
• Percent of Territories Achieving or Exceeding Group Average:  35%

Years in Business:  3-4 Years

• Number of Franchisees in Group:  8
• Number of Territories in Group:  12
• Aggregate Gross Revenue:  $9,098,460
• Average Gross Revenue Per Territory in Group:  $758,205
• Median Gross Revenue of Territories in Group:  $684,239
• Highest Gross Revenue of Territories in Group:  $1,129,937
• Lowest Gross Revenue of Territories in Group:  $262,067
• Number of Territories Achieving or Exceeding Group Average:  4
• Percent of Territories Achieving or Exceeding Group Average:  33%

Years in Business:  4+ Years

• Number of Franchisees in Group:  59
• Number of Territories in Group:  136
• Aggregate Gross Revenue:  $156,322,585
• Average Gross Revenue Per Territory in Group:  $1,149,431
• Median Gross Revenue of Territories in Group:  $681,730
• Highest Gross Revenue of Territories in Group:  $18,083,219
• Lowest Gross Revenue of Territories in Group:  $205,464
• Number of Territories Achieving or Exceeding Group Average:  21
• Percent of Territories Achieving or Exceeding Group Average:  15%

Total

• Number of Franchisees in Group:  90
• Number of Territories in Group:  176
• Aggregate Gross Revenue:  $182,751,083
• Average Gross Revenue Per Territory in Group:  $1,038,358
• Median Gross Revenue of Territories in Group:  $628,421
• Highest Gross Revenue of Territories in Group:  $18,083,219
• Lowest Gross Revenue of Territories in Group:  $142,424
• Number of Territories Achieving or Exceeding Group Average:  34
• Percent of Territories Achieving or Exceeding Group Average:  19%

Part 1B – Gross Revenue by Years in Business, by Franchisee for the Fiscal Year Ended December 31, 2021

Years in Business:  1-2 Years

• Number of Franchisees in Group:  10
• Number of Territories in Group:  11
• Aggregate Gross Revenue:  $7,722,980
• Average Gross Revenue Per Franchisee in Group:  $772,298
• Median Gross Revenue of Franchisees in Group:  $382,821
• Highest Gross Revenue of Franchisees in Group:  $3,870,035
• Lowest Gross Revenue of Franchisees in Group:  $142,424
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  3
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  30%

Years in Business:  2-3 Years

• Number of Franchisees in Group:  13
• Number of Territories in Group:  17
• Aggregate Gross Revenue:  $9,607,058
• Average Gross Revenue Per Franchisee in Group:  $739,004
• Median Gross Revenue of Franchisees in Group:  $550,667
• Highest Gross Revenue of Franchisees in Group:  $1,874,740
• Lowest Gross Revenue of Franchisees in Group:  $190,591
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  5
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  38%

Years in Business:  3-4 Years

• Number of Franchisees in Group:  8
• Number of Territories in Group:  12
• Aggregate Gross Revenue:  $9,098,460
• Average Gross Revenue Per Franchisee in Group:  $1,137,308
• Median Gross Revenue of Franchisees in Group:  $707,207
• Highest Gross Revenue of Franchisees in Group:  $2,259,875
• Lowest Gross Revenue of Franchisees in Group:  $262,067
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  3
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  38%

Years in Business:  4+ Years

• Number of Franchisees in Group:  59
• Number of Territories in Group:  136
• Aggregate Gross Revenue:  $156,322,585
• Average Gross Revenue Per Franchisee in Group:  $2,649,535
• Median Gross Revenue of Franchisees in Group:  $1,499,861
• Highest Gross Revenue of Franchisees in Group:  $36,166,437
• Lowest Gross Revenue of Franchisees in Group:  $343,492
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  14
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  24%

Total

• Number of Franchisees in Group:  90
• Number of Territories in Group:  176
• Aggregate Gross Revenue:  $182,751,083
• Average Gross Revenue Per Franchisee in Group:  $2,030,568
• Median Gross Revenue of Franchisees in Group:  $1,125,273
• Highest Gross Revenue of Franchisees in Group:  $36,166,437
• Lowest Gross Revenue of Franchisees in Group:  $142,424
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  22
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  24%

Part 1C – Gross Revenue Growth by Years in Operation (2020 Fiscal Year to 2021 Fiscal Year Comparison)

Years in Business as of December 31, 2021:  1-2 Years

• Number of Franchisees in Group:  10
• Number of Territories in Group:  11
• 2020 Aggregate Gross Revenue of Group:  $4,927,556
• 2021 Aggregate Gross Revenue of Group:  $7,722,980
• Gross Revenue Growth Percent:  57%

Years in Business as of December 31, 2021:  2-3 Years

• Number of Franchisees in Group:  13
• Number of Territories in Group:  17
• 2020 Aggregate Gross Revenue of Group:  $6,505,493
• 2021 Aggregate Gross Revenue of Group:  $9,607,058
• Gross Revenue Growth Percent:  48%

Years in Business as of December 31, 2021:  3-4 Years

• Number of Franchisees in Group:  8
• Number of Territories in Group:  12
• 2020 Aggregate Gross Revenue of Group:  $8,000,914
• 2021 Aggregate Gross Revenue of Group:  $9,098,460
• Gross Revenue Growth Percent:  14%

Years in Business as of December 31, 2021:  4+ Years

• Number of Franchisees in Group:  59
• Number of Territories in Group:  136
• 2020 Aggregate Gross Revenue of Group:  $142,529,037
• 2021 Aggregate Gross Revenue of Group:  $156,322,585
• Gross Revenue Growth Percent:  10%

Total

• Number of Franchisees in Group:  90
• Number of Territories in Group:  176
• 2020 Aggregate Gross Revenue of Group:  $161,963,000
• 2021 Aggregate Gross Revenue of Group:  $182,751,083
• Gross Revenue Growth Percent:  13%

Part 2 – Active Franchisee Same-Store Gross Revenue Growth (in Business and Reporting as of December 31, 2020 to December 31, 2021)

• Part 2 below shows the total Gross Revenue growth between fiscal years 2020 and 2021 for 90 Franchisees that were in business and reporting Gross Revenue as of December 31, 2020 and as of December 31, 2021.

Total Gross Revenue

• 2020:  $162,227,544
• 2021:  $183,226,394
• Year-Over-Year Growth Percentage:  13%

Part 3 – Systemwide Sales Growth

2016

• Systemwide Sales:  $119,769,829

2017

• Systemwide Sales:  $124,942,754
• Year-Over-Year Growth Percentage:  4%

2018

• Systemwide Sales:  $138,436,743
• Year-Over-Year Growth Percentage:  11%

2019

• Systemwide Sales:  $155,926,017
• Year-Over-Year Growth Percentage:  13%

2020

• Systemwide Sales:  $170,490,047
• Year-Over-Year Growth Percentage:  9%

2021

• Systemwide Sales:  $191,059,146
• Year-Over-Year Growth Percentage:  12%

Part 4 – Mature Franchisees Gross Revenue Performance

• Part 4 below shows data of the 80 Franchisees who reported Gross Revenue greater than $0 in all 12 months of 2021 and had been in business for at least 3 years as of December 31, 2021. These Franchisees operated a total of 165 Territories during 2021.

• This chart excludes 10 Franchisees (operating a total of 47 territories) who had been in business for less than 3 years as of December 31, 2021.

Mature Franchisees with Less Than $1 Million in 2021 Gross Revenue

• Number of Franchisees:  31
• Number of Territories:  39
• Aggregate Gross Revenue:  $16,905,501
• Average Gross Revenue:  $545,339
• Median Gross Revenue:  $514,850
• Number of Franchisees Achieving or Exceeding Group Average:  14
• Percent of Franchisees Achieving or Exceeding Group Average:  45%
• Highest Gross Revenue in Group:  $981,305
• Lowest Gross Revenue in Group:  $190,591

Mature Franchisees with $1 Million to $2 Million in 2021 Gross Revenue

• Number of Franchisees:  28
• Number of Territories:  62
• Aggregate Gross Revenue:  $41,751,480
• Average Gross Revenue:  $1,491,124
• Median Gross Revenue:  $1,490,662
• Number of Franchisees Achieving or Exceeding Group Average:  14
• Percent of Franchisees Achieving or Exceeding Group Average:  50%
• Highest Gross Revenue in Group:  $1,996,839
• Lowest Gross Revenue in Group:  $1,026,524

Mature Franchisees with Greater Than $2 Million in 2021 Gross Revenue

• Number of Franchisees:  21
• Number of Territories:  64
• Aggregate Gross Revenue:  $116,371,122
• Average Gross Revenue:  $5,541,482
• Median Gross Revenue:  $3,034,351
• Number of Franchisees Achieving or Exceeding Group Average:  5
• Percent of Franchisees Achieving or Exceeding Group Average:  24%
• Highest Gross Revenue in Group:  $36,166,437
• Lowest Gross Revenue in Group:  $2,045,190

All Mature Franchisees

• Number of Franchisees:  80
• Number of Territories:  165
• Aggregate Gross Revenue:  $175,028,104
• Average Gross Revenue:  $2,187,851
• Median Gross Revenue:  $1,307,032
• Number of Franchisees Achieving or Exceeding Group Average:  19
• Percent of Franchisees Achieving or Exceeding Group Average:  24%
• Highest Gross Revenue in Group:  $36,166,437
• Lowest Gross Revenue in Group:  $190,591

Part 5 – 2021 Gross Revenue by Hours of Care

• Part 5 below presents a breakdown of the percentage of Gross Revenue by Hours of Care for 88 Franchisees who used the centralized practice management software system Homewatch CareGivers Care+ (“Care+”) for all months during 2021 and who were in business as of the end of 2021.

24 Hours Care

• Average Per Franchisee:  2
• Percent of Gross Revenue:  8.2%

12-23 Hours Care

• Average Per Franchisee:  9
• Percent of Gross Revenue:  22.1%

3-11 Hours Care

• Average Per Franchisee:  52
• Percent of Gross Revenue:  54.4%

2 or Less Hours Care

• Average Per Franchisee:  34
• Percent of Gross Revenue:  15.3%

Part 6 – Direct Caregiver Costs

• Part 6 below shows 2021 direct caregiver costs for 36 Franchisees who (i) used the financial aggregation and benchmarking vendor, Qvinci, (ii) had completed and submitted to Homewatch CareGivers their financial statements for 2021, and (iii) were in business for at least 2 years as of December 31, 2021 (based on their first reported month with Gross Revenue greater than $0). These 36 Franchisees operated a total of 74 Territories during 2021.

Direct Caregiver Costs (January 2021 to December 2021)

• Average Franchise Percentage:  56.8%
• Top 20%:  50.1%
• Bottom 20%:  65.5%
• Median Franchise Percentage:  57.0%

• “Direct Caregiver Costs” is defined as caregiver wages (including applicable overtime pay) and payroll taxes.

• Total direct caregiver costs for the 36 included Franchisees as a percentage of total Gross Revenue for the included Franchisees.

• Direct caregiver costs as a percentage of Gross Revenue for the top 20% (7 Franchisees), ranked by the overall direct caregiver costs as a percentage of Gross Revenue, with the higher ranked Franchisees having lower direct caregiver costs.

Part 7 – Caregiver Metrics

• Part 7 below represents caregiver metrics for 90 Franchisees operating 176 territories that used Care+ practice management software.

• “Out of Territory” Gross Revenue/caregiver metrics are included for each of the Franchisees’ weekly averages.

• Excluded from the chart are 3 Franchisees (representing 3 Territories) who closed during the 2021 fiscal year and 22 Franchisees (representing 27 Territories) who opened during the 2021 fiscal year and were in operation less than one year.

Franchisee Average Weekly Gross Revenue: $0-$10,000

• Total Number of Franchisees in Group:  22
• Average Number of Caregivers on Shift Per Week:  31.6
• Median Number of Caregivers on Shift Per Week:  26.7
• Number of Franchisees Above Average:  5
• Average Number of Hours Per Caregiver Per Week:  12.2
• Median Number of Hours Per Caregiver Per Week:  12.4
• Number of Franchisees Above Average:  9
• Total Territories:  25

Franchisee Weekly Gross Revenue Average: $10,000-$20,000

• Total Number of Franchisees in Group:  20
• Average Number of Caregivers on Shift Per Week:  40.9
• Median Number of Caregivers on Shift Per Week:  33.5
• Number of Franchisees Above Average:  5
• Average Number of Hours Per Caregiver Per Week:  15.7
• Median Number of Hours Per Caregiver Per Week:  14.6
• Number of Franchisees Above Average:  7
• Total Territories:  26

Franchisee Weekly Gross Revenue Average: $20,000-$40,000

• Total Number of Franchisees in Group:  28
• Average Number of Caregivers on Shift Per Week:  60.7
• Median Number of Caregivers on Shift Per Week:  57.0
• Number of Franchisees Above Average:  12
• Average Number of Hours Per Caregiver Per Week:  20.6
• Median Number of Hours Per Caregiver Per Week:  18.6
• Number of Franchisees Above Average:  9
• Total Territories:  64

Franchisee Weekly Gross Revenue Average: $40,000-$60,000

• Total Number of Franchisees in Group:  9
• Average Number of Caregivers on Shift Per Week:  66.0
• Median Number of Caregivers on Shift Per Week:  81.4
• Number of Franchisees Above Average:  4
• Average Number of Hours Per Caregiver Per Week:  28.3
• Median Number of Hours Per Caregiver Per Week:  19.1
• Number of Franchisees Above Average:  2
• Total Territories:  21

Franchisee Weekly Gross Revenue Average: $60,000+

• Total Number of Franchisees in Group:  11
• Average Number of Caregivers on Shift Per Week:  139.4
• Median Number of Caregivers on Shift Per Week:  130.5
• Number of Franchisees Above Average:  3
• Average Number of Hours Per Caregiver Per Week:  29.9
• Median Number of Hours Per Caregiver Per Week:  25.6
• Number of Franchisees Above Average:  3
• Total Territories:  40

Part 8 – Revenue Mix

• Part 8 below represents revenue mix derived from 90 Franchisees operating 185 territories that reported Gross Revenue in 2021 at any time during the 2021 fiscal year and were operating as of December 31, 2021 using Care+.

• Excluded from the chart are 3 Franchisees representing 3 territories that ceased operations in 2021 and a total of 18 Territories that did not report Gross Revenue using Care+ and do not report Gross Revenue as part of Homewatch CareGivers’ standard reporting procedures.

• The chart does not necessarily exclude all of a Franchisee’s Territories if they own multiple Territories.

Revenue Type

• Private Pay:  61%
• Government:  39%

• Total private pay and government revenue for the 90 included Franchisees as a percentage of total Gross Revenue for the included Franchisees.

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

Section VI – Homewatch CareGivers Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️