ComForCare Home Care Franchise Review – Average Gross Sales, Cost of Goods Sold, Gross Margin, Revenue Source, Hours Billed, Number of Clients (2020 FDD)| Franchise Chatter

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ComForCare Home Care Franchise 2021

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

  • Section I – Background information on the ComForCare Home Care franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a ComForCare Home Care franchise, based on Item 7 of the company’s 2020 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a ComForCare Home Care franchise, based on Items 5 and 6 of the company’s 2020 FDD
  • Section IV – Number of franchised and company-owned ComForCare Home Care outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
  • Section V – Presentation and analysis of ComForCare Home Care’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
  • 2019 average, median, highest, second highest, lowest, and second lowest territory’s gross sales for the 170 deluxe ComForCare Home Care franchise territories that were open and in operation during the entire period of January 1, 2019 through December 31, 2019 and have reported a minimum of 13 months of gross sales data
  • 2019 average, median, highest, second highest, lowest, and second lowest owner’s gross sales for the 139 deluxe ComForCare Home Care franchise owners (including those with multiple territories) that were open and in operation during the entire period of January 1, 2019 through December 31, 2019 and have reported a minimum of 13 months of gross sales data
  • 2019 average and median gross margin percentage for the 60 ComForCare Home Care franchise owners that responded to a survey sent by ComForCare Home Care to the entire franchise system and provided information on both their gross sales and costs of goods sold
  • 2019 systemwide revenue by source percentage (private pay, Medicaid/state-funded programs, insurance, veterans’ programs, and miscellaneous) generated from ComForCare Home Care’s proprietary operational software for offices that were open the entire 2019 calendar year (132 franchisee databases)
  • 2019 average, median, highest, second highest, lowest, and second lowest hours billed generated from ComForCare Home Care’s proprietary operational software for offices that were open the entire 2019 calendar year (132 franchisee databases)
  • 2019 average, median, highest, second highest, lowest, and second lowest number of clients generated from ComForCare Home Care’s proprietary operational software for offices that were open the entire 2019 calendar year (132 franchisee databases)

Section I – Background Information

19 Things You Need to Know About the ComForCare Home Care Franchise

Revamps Recruitment Process as New Franchise Sales Are on the Rise

1.  The ongoing COVID-19 pandemic has meant different things to different organizations. For home care giant ComForCare, it has meant pivoting to new ways of approaching recruitment and onboarding. Since the start of the public health emergency, ComForCare has implemented the use of TextRecruit as a part of its recruitment process. The platform has allowed the franchisor to reach out to potential caregivers through text message, creating a crucial new line of communication at a time when applicants may be feeling overwhelmed.

2.  Lauren LaParl, human resources program manager for ComForCare, told Home Health Care News, “This is an additional form of communication to get in touch with our applicants. We know that people are getting inundated with phone calls and emails. And especially with COVID-19, there was so much communication going on. TextRecruit became a way for our owners to be able to easily and quickly send a text to an applicant or any candidate in their system.”

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3.  ComForCare has been handling everything from scheduling interviews to sending out basic company information via text. The shift to text messaging during the recruitment process has yielded favorable results for the company thus far, particularly compared to emails and phone calls, according to LaParl.

4.  LaParl added, “We’ve seen really great success in terms of response rate. With email or phone calls, the response rates are usually quite a bit slower. The person needs to have more thoughtful responses, or they’re not near their email or their phone. But most of us have that text communication close.”

5.  As COVID-19 spelled the end of traditional networking, ComForCare also began strategizing about new ways to tap into a pool of caregiver candidates. Social media became one alternative to networking and recruitment events. “We used to encourage our owners to get out in the community, find different colleges or programs in the area to network with and to help build your recruitment,” LaParl said. “We often talk about how recruitment is similar to marketing, in that networking is so important. We unfortunately can’t use those more traditional techniques, so we’ve been focused on leveraging social media to share those jobs.”

6.  ComForCare owners are more frequently using social media platforms such as Facebook and LinkedIn to promote job openings. According to LaParl, “Whether it’s their personal or business social media pages, they can share that job to help boost their network, boost the visibility of the job and, in turn, increase the number of applicants. It has allowed us to continue to network, but in a way where we’re doing it virtually with our social media networks.”

7.  Like the majority of its peers, ComForCare has also begun leaning on virtual interviews held through online meeting platforms. With this shift, it was important not to lose the personal connection when it comes to recruitment, said LaParl. “We know how important it is to have that connection with your job seeker,” she said. “We always talk about how when you’re doing that virtual interview, it can really be a nice process for both the candidate and the owner. Your candidate can feel a little bit more comfortable at home. On the other side, whoever’s doing the interviewing can easily take notes and shorten their time when it comes to the recruitment process.”

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8.  Since implementing virtual interviews, ComForCare has held a series of internal webinars to educate and keep owners up to date when it comes to processes. In addition to the success ComForCare has seen with the COVID-19-related revamp of its recruitment process, it has also been a fruitful time for franchise sales. Bobbie Doe, director of human resources for ComForCare, said, “We have actually seen, during this period of time, the sell of franchises to new owners has really been a popular choice for people who are looking to invest in a business. I think it’s because it is a recession-proof business, and something that people feel confident in during difficult economic times like this. It’s a needed service that won’t go away.”

9.  Overall, the company had opened 42 franchise locations across all brands at the time of the press release in September 2020. The company is also seeing its current owners grow their businesses, according to Doe. “At the beginning of the pandemic, things may have slowed initially, but we have remained pretty steady throughout,” said Doe. “After the initial spike in COVID, business actually started to take an upturn again. With senior care communities having to restrict admissions, there became more of a need for people to remain in their home and they needed home care.”

10.  During the public health emergency, various ComForCare locations began performing health screenings for local businesses and their workers. This became another revenue generator, according to Doe. “Some of our franchisees actually picked up those contracts to basically employ our caregivers to take temperatures and do the health screenings of their employees,” she said.

Joins Alzheimer’s Foundation of America as National Member

11.  In early August 2020, ComForCare and sister brand At Your Side Home Care became new members of The Alzheimer’s Foundation of America (AFA). The two brands joined AFA’s national network of member organizations with the goal of providing nationwide support, services, and education to individuals, families, and caregivers affected by dementia.

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12.  ComForCare is part of Best Life Brands, a family of companies focused on the well-being of clients at any stage of life. The multi-brand organization also includes CarePatrol, the nation’s largest senior placement organization, and Blue Moon Estate Sales, the nation’s industry-leading estate sales franchise brand.

13.  AFA works hand in hand with its member organizations to provide resources to families affected by Alzheimer’s, especially through its National Toll-Free Helpline (866-232-8484) where licensed social workers can connect callers with services in their area.

14.  Sean Kajcienski, COO of Best Life Brands, said, “Our relationship with the Alzheimer’s Foundation of America will accelerate our efforts to help individuals with dementia-related diseases. We launched our DementiaWise program six years ago after seeing a real need for our clients and their caregivers to get stronger tools and support for managing dementia.”

15.  Charles J. Fuschillo, Jr., AFA’s president and CEO, said, “AFA works closely with our member organizations to help those affected by Alzheimer’s disease and connect them with programs, services and support. We are excited to welcome ComForCare to our member network and look forward to having them work with us to help people living with Alzheimer’s.”

Company History

16.  ComForCare was founded in 1996 by Mark Armstrong in Bloomfield Hills, Michigan. In addition to senior home care services, ComForCare offers in-home care for anyone with disabilities or those who are recovering from a surgery or hospitalization. After a few years of success, ComForCare started franchising in 2001.

17.  The brand quickly made a name for itself by creating thorough training programs designed to help franchise owners with staff retention. Through its CaregiverFirst program, as well as a comprehensive 10-step hiring process and opportunities for certification and job growth, ComForCare has created a system that finds and keeps the best and most talented caregivers.

18.  Over the next decade, ComForCare continued to grow around the United States and Canada. In 2017, ComForCare was acquired by The Riverside Company, a New York-based private equity firm. Two years later, Riverside established Best Life Brands, LLC, to oversee its home care brands, including ComForCare, At Your Side Home Care, and CarePatrol.

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19.  ComForCare ranked No. 352 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of ComForCare Home Care franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on ComForCare Home Care’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

  • Outlets at the Start of the Year:  194
  • Outlets at the End of the Year:  190
  • Net Change:  -4

2018

  • Outlets at the Start of the Year:  190
  • Outlets at the End of the Year:  190
  • Net Change:  0

2019

  • Outlets at the Start of the Year:  190
  • Outlets at the End of the Year:  194
  • Net Change:  +4

Company-Owned

2017

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

2018

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

2019

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

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

  • This Item 19 contains historical financial performance data as provided by certain ComForCare franchisees. The representations made in this Item 19 are based upon the franchise system’s outlets existing for the period of time indicated below unless otherwise specifically excluded, as discussed below.
  • The financial performance information included in Parts 1 and 2 below reflect average gross sales of Deluxe ComForCare franchisees that: (1) were open and in operation during the entire period of January 1, 2019 through December 31, 2019 (the “Measurement Period”) and (2) have reported a minimum of 13 months of gross sales data (the “Included Franchisees”).
  • Deluxe ComForCare Franchises are those franchises that have approximately 25,000 to 35,000 people over the age of 65 (“Senior/s”).
  • ComForCare considers a franchisee to be “open and in operation” once they have completed their training and all assigned door opening tasks, and are able to provide, at least, unlicensed homemaker/companionship services within their exclusive area.
  • This financial performance representation does not include: (1) data for territories purchased and not yet opened by franchise owners, and (2) data for territories held by owners for resale that have been idled pending location of a buyer.
  • In some instances, the Included Franchisees have purchased more than one franchise territory and report franchise sales and royalty information as a single unit for all territories they own and/or operate out of one central office.
  • In addition, at the time of this disclosure, ComForCare has two franchises located within a Standard territory (those territories with more than 15,000 and less than 25,000 Seniors). Of these two Standard franchises, one has not been open for at least 13 months while the other, though open, elected not to develop the territory until the middle of 2019 (this franchise’s gross sales were not included in Parts 1 and 2 below.) ComForCare has not sold any franchises under its Conversion Program.
  • The financial performance information presented below has been extracted from royalty reports provided to ComForCare by the franchisees.
  • ComForCare has not audited this information, nor has it independently verified this information.
  • In addition, in conjunction with the services provided to seniors, the population size, density of seniors, and number of people over the age of 65 in the exclusive areas for the franchise owners represented in Parts 1 and 2 below may not be similar to, or representative of, the exclusive area you may purchase.
  • The disclosure figures for Parts 1 and 2 do not reflect all other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.
  • A new franchisee’s individual financial results may differ from the results stated in this financial performance presentation.

Part 1 – Gross Sales Information by Franchise Territory Operating at Least One Full Year – Deluxe Territories

Franchise Territory Time in Business: 169 Months and Greater

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