Jovie: $410K Average Sales vs. $107K-$163K Franchise Cost

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

Section I – Estimated initial investment (franchise costs) for a Jovie franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Jovie franchise, based on Items 5 and 6 of the company’s 2023 FDD

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

Section V – Presentation and analysis of Jovie’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 average and median bill rate, pay rate, and gross margin percentage for nanny placement services, babysitting services, and corporate back-up care through national account for the entire Jovie franchise system

• 2022 average, median, highest, and lowest gross revenue for the 11 single-territory and 33 multi-territory Jovie franchisees (separately stated) that were in operation for at least 12 months as of December 31, 2022

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

Section I – Jovie Franchise Costs

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

• Initial Franchise Fee:  $45,000
• Initial Marketing and Recruiting:  $20,000
• Construction and Remodeling:  $0 to $10,000
• Furnishings, Equipment, Supplies, and Technology:  $3,000 to $12,000
• Signage:  $500 to $5,000
• Legal and Accounting:  $1,000 to $3,000
• Training Expenses:  $1,500 to $3,000
• Insurance:  $6,000 to $15,000
• Additional Funds/Working Capital (initial 3 months):  $30,000 to $50,000
• Total Estimated Jovie Franchise Costs (does not include real estate costs):  $107,000 to $163,000

Section II – Jovie’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Franchise Fee:  $45,000
• Royalty Fee:  5% of Gross Revenues. Minimum Royalty Fee of $800/month starting 18 months after you and Jovie sign the Franchise Agreement (“Effective Date”)
• Brand Fund Contributions:  2% of Gross Revenues
• Local Marketing Expenditures:  greater of 2% of Gross Revenues or $15,000 per year
• Multi-Area Marketing and Cooperative Advertising:  varies

Section III – Number of Franchised and Company-Owned Jovie Outlets

Franchised

2020

• Outlets at the Start of the Year:  192
• Outlets at the End of the Year:  188
• Net Change:  -4

2021

• Outlets at the Start of the Year:  188
• Outlets at the End of the Year:  185
• Net Change:  -3

2022

• Outlets at the Start of the Year:  185
• Outlets at the End of the Year:  177
• Net Change:  -8

Company-Owned

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:  1
• Net Change:  +1

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  15
• Net Change:  +14

Section IV – News Updates on the Jovie Franchise

• Jovie Nannies+Sitters Looks to Aaniie to Create a Next-Generation Home Childcare Delivery Platform

• Jovie Announces Stuart Dupuy as New Brand President of Caregiver Franchise

• Jovie Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

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

• The information presented in this Item 19 is based upon Jovie’s franchised businesses when they were operating under the branding “College Nannies + Sitters + Tutors” and then rebranded to Jovie. They are the same business that is being offered and sold under the disclosure document, except you will operate solely under the mark Jovie.

• Jovie has also excluded company-owned outlets from this Item 19.

Part 1 – Average Rates and Margins

• In this Part 1, the franchisor has prepared 3 tables listing the average bill rate, average pay rate, and average gross margin percentage for the entire franchise system during the 2022 calendar year.

• In Tables 1 to 3 below, the bill rate is the average amount that was charged to customers for the specified type of services, as an hourly rate.

• The pay rate is the average hourly rate that was paid to employees who provided the specified services.

• Gross margin percentage is calculated by subtracting the hourly wage paid to the employee and all payroll taxes, workers’ compensation premiums, and payroll processing costs, from the bill rate and dividing the result by the bill rate.

• The tables below include average bill rates, pay rates, and gross margin percentages for the entire franchise system.

• Your bill rate, pay rate, and gross margin percentage may differ.

Table 1 – Nanny Placement Services (including full-time, part-time, and summer nanny services)

All Locations

• Average Bill Rate to Families:  $27.25
• Median Bill Rate to Families:  $27.94
• Average Pay Rate to Nanny:  $16.78
• Median Pay Rate to Nanny:  $16.20
• Average Gross Margin Percentage:  29%
• Median Gross Margin Percentage:  32%

Table 2 – Babysitting Services

All Locations

• Average Bill Rate to Families:  $27.51
• Median Bill Rate to Families:  $27.74
• Average Pay Rate to Nanny:  $15.90
• Median Pay Rate to Nanny:  $16.25
• Average Gross Margin Percentage:  34%
• Median Gross Margin Percentage:  33%

Table 3 – Corporate Back-Up Care Through National Account

All Locations

• Average Bill Rate to Families:  $32.78
• Median Bill Rate to Families:  $32.78
• Average Pay Rate to Nanny:  $17.15
• Median Pay Rate to Nanny:  $16.71
• Average Gross Margin Percentage:  41%
• Median Gross Margin Percentage:  42%

• Corporate On-Call/Back-Up Care Services includes services arranged through the franchisor’s parent Bright Horizons Family Solutions (NYSE: BFAM) as well as other back-up care services provided to corporations.

Part 2 – Gross Revenues

• In this Part 2, the franchisor has prepared 2 tables to show 2022 Gross Revenues information for single- and multi-territory franchisees that were in operation for at least 12 months as of December 31, 2022.

• As of December 31, 2022, there were a total of 44 franchisees operating in a total of 177 territories.

• The tables below include information for the 44 franchisees operating in 175 territories that were in operation for at least 12 months as of December 31, 2022.

• Excluded from the tables below are 2 territories that commenced operations during the 2022 calendar year and therefore were not open and operating for at least 12 months as of December 31, 2022, and 10 territories that ceased operating during the 2022 calendar year.

• Franchisees operating in more than one territory report information for their businesses on a combined basis.

• Of the 10 territories that ceased operating during the 2022 calendar year, none had been operating for less than 12 months.

Table 4 – Gross Revenue Information for Multiple-Territory Franchisees

• In Table 4 below, the franchisor separated the 33 franchisees that have more than one territory into 4 equal-sized tiers based on their calendar year Gross Revenues in 2022.

• Out of these 33 franchisees, 9 have 2 territories, 5 have 3 territories, 6 have 4 territories, 1 has 5 territories, 4 have 6 territories, 1 has 7 territories, 2 have 8 territories, 1 has 9 territories, 2 have 10 territories, 1 has 11 territories, and 1 has 15 territories.

Tier 1

• Average Gross Revenue:  $3,747,884
• Median Gross Revenue:  $3,228,046
• Met or Exceeded the Average for the Tier:  1 of 8 (13%)
• High Gross Revenue:  $8,108,588
• Low Gross Revenue:  $2,582,569
• Average Number of Territories in Tier:  7.6

Tier 2

• Average Gross Revenue:  $2,052,360
• Median Gross Revenue:  $2,075,458
• Met or Exceeded the Average for the Tier:  5 of 8 (63%)
• High Gross Revenue:  $2,371,401
• Low Gross Revenue:  $1,635,665
• Average Number of Territories in Tier:  6.6

Tier 3

• Average Gross Revenue:  $1,055,768
• Median Gross Revenue:  $1,081,593
• Met or Exceeded the Average for the Tier:  5 of 9 (55%)
• High Gross Revenue:  $1,384,542
• Low Gross Revenue:  $776,098
• Average Number of Territories in Tier:  3.1

Tier 4

• Average Gross Revenue:  $506,855
• Median Gross Revenue:  $542,869
• Met or Exceeded the Average for the Tier:  5 of 8 (63%)
• High Gross Revenue:  $672,795
• Low Gross Revenue:  $120,078
• Average Number of Territories in Tier:  2.75

Table 5 – Gross Revenue Information for Single-Territory Franchisees

• In Table 5 below, the franchisor separated the 11 franchisees that are single-territory franchisees into 4 roughly equal-sized tiers based on their calendar year Gross Revenues in 2022.

Tier 1

• Average Gross Revenue:  $730,929
• Median Gross Revenue:  $723,014
• Met or Exceeded the Average for the Tier:  1 of 3 (33%)
• High Gross Revenue:  $832,841
• Low Gross Revenue:  $636,932

Tier 2

• Average Gross Revenue:  $475,263
• Median Gross Revenue:  $477,435
• Met or Exceeded the Average for the Tier:  2 of 3 (66%)
• High Gross Revenue:  $508,320
• Low Gross Revenue:  $440,032

Tier 3

• Average Gross Revenue:  $235,317
• Median Gross Revenue:  $230,462
• Met or Exceeded the Average for the Tier:  1 of 3 (33%)
• High Gross Revenue:  $331,726
• Low Gross Revenue:  $143,763

Tier 4

• Average Gross Revenue:  $95,616
• Median Gross Revenue:  $95,616
• Met or Exceeded the Average for the Tier:  1 of 2 (50%)
• High Gross Revenue:  $118,100
• Low Gross Revenue:  $73,132

• For the purpose of this Item 19, Gross Revenues mean the gross amount, whether in money or other form of consideration, earned or received by the applicable franchisees from any source in connection with the operation of the franchised businesses or any similar or related activity, but does not include any sales tax or refunds actually paid to their clients.

• The franchisor has not audited the figures provided in this Item 19. The financial performance representation figures listed in this Item 19 do not reflect the cost of sales, operating expenses, or other costs and expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• Some franchisees have benefited from national account revenue, including Bright Horizons. These programs may or may not exist in your particular market.

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

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