Amada Senior Care: $1.27M Average Sales vs. $115K-$270K Franchise Cost

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

Section I – Estimated initial investment (franchise costs) for an Amada Senior Care franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Amada Senior Care franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Amada Senior Care outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Amada Senior Care franchise opportunity

Section V – Presentation and analysis of Amada Senior Care’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 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 tenth full calendar year of operations

• 2018, 2019, 2020, 2021, and 2022 average, median, highest, and lowest gross billings for franchised Amada Senior Care outlets that have been open and operating for the entire designated period

• 2018, 2019, 2020, 2021, and 2022 total systemwide revenue from all franchised Amada Senior Care outlets

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

Section I – Amada Senior Care Franchise Costs

• Amada Senior Care franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $55,000
• Lease or Rent:  $3,000 to $4,500
• Utility Deposits:  $750 to $1,200
• Furniture, Office Equipment, and Supplies:  $2,500 to $6,000
• Vehicle:  $0 to $3,300
• Vehicle Wrap (Optional):  $0 to $3,800
• Required Technology:  $1,500 to $5,500
• Initial Training:  $2,000 to $4,500, or ~$2,000 per person
• Grand Opening Advertising:  $1,500
• Marketing Materials and Business Development:  $4,500 to $7,500
• Insurance Excluding Workers’ Compensation Insurance:  $1,200 to $2,200
• Workers’ Compensation Insurance:  $550 to $3,200
• Legal and Accounting Fees:  $1,000 to $5,000
• Licenses and Permits:  $1,650 to $13,000
• Loan Packaging Fee:  $0 to $4,000
• Wages and Compensation:  $0 to $70,000
• Additional Funds for 3 Months:  $40,000 to $80,000
• Total Estimated Amada Senior Care Franchise Costs:  $115,150 to $270,200

Section II – Amada Senior Care’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Amada Senior Care’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $55,000
• Royalty Fee for Senior Care, Skilled Care, Administration Services, and Staffing Services Accounts:  the greater of the Minimum Royalty Fee or 5% of monthly Gross Billings for Senior Care, Skilled Care, Administration Services, and Staffing Services Accounts
• Royalty Fee for National Accounts:  6% of monthly Gross Billings generated from National Accounts
• Senior Placement Fee:  10% of commission received for senior placement or 15% of commission received for senior placement for National Accounts
• Advertising Fund:  1% of Gross Billings for the previous month; 0.25% of Gross Billings for Skilled Care services for the previous month

Section III – Number of Franchised and Company-Owned Amada Senior Care Outlets

Franchised

2020

• Outlets at the Start of the Year:  112
• Outlets at the End of the Year:  136
• Net Change:  +24

2021

• Outlets at the Start of the Year:  136
• Outlets at the End of the Year:  149
• Net Change:  +13

2022

• Outlets at the Start of the Year:  149
• Outlets at the End of the Year:  160
• Net Change:  +11

Company-Owned

2020

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

2021

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

2022

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

Section IV – News Updates on the Amada Senior Care Franchise

• Amada Senior Care Franchise Celebrates 10 Years in Business

• CareAcademy Partners With Amada Senior Care to Elevate Caregiver Training Opportunities Across Franchise Network

• Amada Senior Care Franchise Selects AxisCare Software

• Amada Senior Care Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Amada Senior Care Franchise (Item 19, 2023 FDD)

• 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 1 affiliate-owned outlet and 214 franchised outlets. Amada has not included outlets in the tables below that have not yet completed a full calendar year of operations in the System (15 franchised outlets), that never opened (11 franchised outlets), that were transferred (1 affiliate-owned outlet and 42 franchised outlets), closed or ceased operations for other reasons (10 franchised outlets), or that have not reported their Gross Billings to Amada in accordance with System requirements (2 franchised outlets). Of the 10 franchised outlets that closed, 1 closed after being open less than 12 months.

Part 1 – First Full Calendar Year Gross Billings

• As of the issuance date of the current disclosure document, Amada has 133 franchisees in the System who between Amada’s inception in 2012 and December 31, 2022, 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:  $17,564
• Median:  $358,663
• Average:  $467,825
• Number at or Above Average:  54 of 133 (40.6%)

Part 2 – Second Full Calendar Year Gross Billings

• Amada has 101 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:  $3,175
• Median:  $825,485
• Average:  $877,738
• Number at or Above Average:  41 of 101 (40.6%)

Part 3 – Third Full Calendar Year Gross Billings

• Amada has 84 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:  $4,761,934
• Low:  $5,775
• Median:  $973,049
• Average:  $1,157,118
• Number at or Above Average:  33 of 84 (39.3%)

Part 4 – Fourth Full Calendar Year Gross Billings

• Amada has 75 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:  $6,759,934
• Low:  $31,178
• Median:  $1,146,931
• Average:  $1,410,392
• Number at or Above Average:  32 of 75 (42.7%)

Part 5 – Fifth Full Calendar Year Gross Billings

• Amada has 63 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:  $20,253
• Median:  $1,174,973
• Average:  $1,494,463
• Number at or Above Average:  27 of 63 (42.9%)

Part 6 – Sixth Full Calendar Year Gross Billings

• Amada has 56 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:  $56,396
• Median:  $1,313,046
• Average:  $1,588,150
• Number at or Above Average:  22 of 56 (39.3%)

Part 7 – Seventh Full Calendar Year Gross Billings

• Amada has 34 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:  $198,182
• Median:  $1,472,977
• Average:  $1,667,386
• Number at or Above Average:  13 of 34 (38.2%)

Part 8 – Eighth Full Calendar Year Gross Billings

• Amada has 19 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:  $223,177
• Median:  $1,548,310
• Average:  $2,026,504
• Number at or Above Average:  8 of 19 (42.1%)

Part 9 – Ninth Full Calendar Year Gross Billings

• Amada has 8 franchisees in the System that have been operational and reporting to Amada for 9 full calendar years; their ninth full calendar year Gross Billings are disclosed in Part 9 below.

• High:  $10,534,850
• Low:  $392,149
• Median:  $1,885,991
• Average:  $2,742,194
• Number at or Above Average:  1 of 8 (12.5%)

Part 10 – Tenth Full Calendar Year Gross Billings

• Amada has 2 franchisees in the System that have been operational and reporting to Amada for 10 full calendar years; their tenth full calendar year Gross Billings are disclosed in Part 10 below.

• High:  $10,553,726
• Low:  $2,248,922
• Median:  $6,401,324
• Average:  $6,401,324
• Number at or Above Average:  1 of 2 (50.0%)

Part 11 – Revenue for Franchisees Operating the Full Year for 2018-2022

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

2018

• High:  $6,138,975
• Low:  $186,346
• Median:  $934,740
• Average:  $1,155,568
• Number at or Above Average:  20 of 58 (34.5%)

2019

• High:  $6,274,246
• Low:  $168,206
• Median:  $910,108
• Average:  $1,285,617
• Number at or Above Average:  26 of 69 (37.7%)

2020

• High:  $7,073,075
• Low:  $171,816
• Median:  $1,164,662
• Average:  $1,489,864
• Number at or Above Average:  30 of 77 (39.0%)

2021

• High:  $10,534,850
• Low:  $31,178
• Median:  $1,042,856
• Average:  $1,478,141
• Number at or Above Average:  35 of 94 (37.2%)

2022

• High:  $10,553,726
• Low:  $20,253
• Median:  $916,489
• Average:  $1,273,105
• Number at or Above Average:  46 of 127 (36.2%)

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

Part 12 – Systemwide Revenue by Calendar Year for 2018 to 2022

• The following table discloses total Systemwide Revenue from all franchised outlets by full calendar year for the designated period.

• 2018:  $70,948,908
• 2019:  $97,020,288
• 2020:  $118,797,937
• 2021:  $143,637,557
• 2022:  $164,429,518

• 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.

Section VI – Amada Senior Care Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️