HomeWell Care Services Franchise Review – Average, Median, Highest, and Lowest Gross Revenues Per Franchisee and Per Franchised Territory (2020 FDD) | Franchise Chatter

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

  • Section I – Background information on the HomeWell Care Services franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a HomeWell Care Services 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 HomeWell Care Services franchise, based on Items 5 and 6 of the company’s 2020 FDD
  • Section IV – Number of franchised and company-owned HomeWell Care Services 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 HomeWell Care Services’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
  • 2019 average, median, highest, and lowest gross revenues per HomeWell Care Services franchisee that had been open for all of the 2019 calendar year
  • 2019 average, median, median, highest, and lowest gross revenues per HomeWell Care Services franchised territory that had been open for all of the 2019 calendar year

Section I – Background Information

15 Things You Need to Know About the HomeWell Care Services Franchise

Reports Strong First Quarter 2020

1.  In mid-April 2020, HomeWell Care Services released its first quarter franchise development results. Some of the first quarter highlights included:

  • The company awarded eight new territories, which is represented by seven signed franchise agreements. These include agreements for Beverly Farms, Mass., Charlotte, N.C., Georgetown, Del., Colorado, Spring, Colo., Pueblo, Colo., Bonita Springs, Fla., and Lexington, Ky.
  • The system launched four new home care agencies this quarter in the following areas: HomeWell of West Fort Worth, HomeWell of Metro West, HomeWell of Andover, and HomeWell of Sussex County.

2.  Crystal Franz, chief strategy officer of HomeWell Care Services (at the time), said, “We started the year off with great momentum and it shows in our first quarter growth. Future business owners are taking notice of the investment we are making in the HomeWell brand and are looking to be a part of an industry that’s seeing tremendous growth.”

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3.  HomeWell launched a system-wide, comprehensive rebrand in late 2019. The rebrand was the result of a significant amount of consumer research, which better positions HomeWell as the home care agency of choice in communities nationwide. Additionally, HomeWell has launched many new brand programs that allow its owners to attract more business and further drive their growth.

4.  HomeWell is focused on strategic expansion across the U.S. through franchise-owned development. With many territories available, the company expects to have over 100 HomeWell Care Services franchises by 2023.

5.  Brandon Clifford, vice president of franchise development, said, “HomeWell has evolved greatly in recent years and more people are seeing the value in home care. As a result, we have in place a strong franchise candidate pipeline. What’s most exciting about home care, other than the obvious rise in our aging population, is the scalability of this business model. Since our franchise owners offer services within the homes of their clients, it does not require the large build out needed for a brick and mortar or retail concept. This allows new owners to enter this model at a reasonably low level of investment, but also easily scale their business by simply acquiring more territory and not having to invest in more real estate like you see with so many other franchised business models.”

Appoints New Chief Operating Officer

6.  In mid-January 2021, HomeWell Care Services announced the appointment of Crystal Franz as chief executive officer effective immediately. Franz joined the company in July 2018 as vice president of brand strategy, marketing, and communications. Starting in 2019, she has served as the chief strategy officer. In this role, she led the cross-functional executive leadership team and worked closely to ensure collaboration with franchise development, franchise services, brand programs, and finance.

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7.  Equipped with over 15 years of franchising experience, Franz has held leadership roles at WoodSpring Hotels, a national brand leader in extended stay, and Comfort Inn and Comfort Suites under major franchisor, Choice Hotels International.

8.  The company also announced a reorganization of the executive leadership team, further strengthening the management team with executives deeply experienced in their respective fields. Franz will continue to lead the executive leadership team to accelerate the company’s growth and continue to establish its brand in the home care industry.

9.  The following changes have been made:

  • Brandon Clifford will now serve as senior vice president of development and franchise services. Clifford joined HomeWell in May 2019 as vice president of franchise development, where he has significantly contributed to the rapid growth of the brand securing dozens of new franchise deals during his short tenure. His extensive background in business ownership and franchise consulting will continue to contribute to the support of the company’s franchise system.
  • Michelle Cone will now serve as senior vice president of training and brand programs. Cone has over 20 years of extensive healthcare experience working with some of the largest organizations in the healthcare industry. She joined HomeWell in 2015 and was responsible for driving operational excellence for the franchise system. She will lead the development of all brand programs, service offerings, and manage the training and opening support for HomeWell franchisees.
  • Mishelle Payne will now serve as vice president of marketing. Payne’s experience in building new brands and establishing best-in-class marketing will be instrumental to leading HomeWell’s marketing department. In her time at the company, she led the launch of the new brand identity and established a robust marketing assets resource for franchisees.
  • Casey McCleskey will continue to serve as HomeWell’s chief financial officer. McCleskey brings accounting and finance knowledge stemmed from his experience working in public accounting and more recently as CFO of a professional engineering firm.

10.  Bruce Haase, chairman of the board, said “The company has seen a tremendous amount of growth in the last year and that has been in large part because of the management team’s deep experience in all facets of our business. I am pleased to welcome Crystal to her new role, and I am confident in the leadership team’s commitment to continue HomeWell’s growth trajectory.”

11.  The changes come after a successful year despite the pandemic sweeping through the nation. Franz said, “We started 2020 with great momentum and tremendous first quarter results. When the pandemic shut down much of the economy, we were bracing ourselves. But we never slowed down, the team stayed focused on supporting our owners, and it shows in our growth.”

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12.  McCleskey added, “The pandemic has highlighted the acute need for in-home care. We had a record-breaking year in terms of our unit growth, new owners, and expansion of our national footprint and we see these trends continuing into 2021.”

Company History

13.  HomeWell Care Services was founded in 1996 by Joshua Hoffman as Hoffman’s Home Helpers in Seattle, Washington. Hoffman had worked as a caregiver for several years, but felt that there was room for improvement in the industry and decided to start his own senior care company. Over the next decade, Hoffman turned his senior care business into a success and started franchising the concept in 2003.

14.  Since then, HomeWell Care Services has continued to expand around the U.S. and Canada. In 2018, Bruce Haase acquired a majority ownership position in the company and now serves as chairman of the board. Hoffman still retains one-third ownership of HomeWell Care Services.

Entrepreneur’s Franchise 500

15.  HomeWell Care Services ranked No. 458 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of HomeWell Care Services 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 HomeWell Care Services’ 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:  53
  • Outlets at the End of the Year:  56
  • Net Change:  +3

2018

  • Outlets at the Start of the Year:  56
  • Outlets at the End of the Year:  53
  • Net Change:  -3

2019

  • Outlets at the Start of the Year:  53
  • Outlets at the End of the Year:  52
  • Net Change:  -1

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

  • The financial performance information presented below is for the 2019 calendar year for all franchised territories that had been open for all of the 2019 calendar year.
  • As of December 31, 2019, HomeWell had a total of 27 franchisees that had an open and operating Franchised Business (franchise territory), and there were 52 franchised territories that were open and operating.
  • The financial performance representations in Parts 1 and 2 consist of data for 22 of those 27 franchisees on both a “Per-Franchisee” basis (Part 1), as well as a “Per-Territory” basis (Part 2).
  • Both Parts are subdivided based on the number of months that the included franchisees and territories had been open to the public as of December 31, 2019 and also include the aggregated mean, median, and range of annual Gross Revenues for all franchisees and territories included in each Part.
  • The other 5 franchisees were not included because they were not open for all of 2019. One outlet opened and closed in the 2019 fiscal year.
  • The 22 franchisees whose data were included in Parts 1 and 2 operated a total of 46 franchised territories (each franchised territory is under a separate Franchise Agreement). Twelve of the 22 franchisees whose data were included operated multiple territories during the measurement period, and the franchisor has noted in the table the number of multi-territory operators that were included in each sub-group.
  • Of the 46 franchised territories that are included in Parts 1 and 2: (i) 7 of these territories are approximately 2 times the size of a typical territory; and (ii) 1 of these territories is approximately 3 times the size of a typical territory. All of the above-average territories were included in the “61 plus months in business” subgroup.
  • There are no company-operated outlets.
  • For purposes of this Item 19, “Gross Revenues” means the total amount billed by you (regardless of collection) arising from, connected with, or related to the sale of all goods, merchandise, or services and all business transacted at, from, or through your Franchised Business, directly or indirectly, excluding only (a) sales taxes and other taxes separately stated that you collect from clients and pay to taxing authorities; (b) refunds and credits made in good faith to arm’s-length clients according to HomeWell’s standards and specifications for issuing refunds or credits; and (c) the discount value of any coupon, voucher, or other allowance that HomeWell authorizes at the time you redeem the client’s coupon, voucher, or allowance.
  • The Gross Revenues information was provided to HomeWell through required reports received from franchisees using a uniform system of reporting. The data has not been audited or independently verified by HomeWell or its accountant.

Part 1 – Per-Franchisee Gross Revenue Data (By Months in Business) for the Calendar Year 2019

Months Open to the Public:  61 or More

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