How To's
How Much Does A ComForCare Home Care Franchise Cost?
An aging population is on the rise. The AARP finds that the number of those turning 65 would double in 2050 and would make up 20% of the population. That’s where home care franchises come in. ComForCare Home Care is one example of a senior care chain that many franchisees consider. The question is, how much does a ComForCare Home Care franchise cost?
In this article, know more about the ComForCare Home Care franchise and your initial investment and costs.
ComForCare Home Care Franchise Overview
ComForCare Home Care (ComForCare) started its operations in 1996, having opened its first location in Michigan. Senior care had gained traction then, and the senior care franchise hoped to serve more people in the United States and Canada.
Since then, they have over 200 ComForCare locations in the United States. Meanwhile, in Canada, they have eight. Franchisees are open to establishing new chains in all states and have 53 available slots for seven Canadian provinces.
They have three registered and trademark programs that make them different from other home care franchises. And these programs are DementiaWise®, Joyful Memories®, and Caregiver First™. These programs ensure that the needs of both clients and caregivers are met. In fact, their DementiaWise® program was lauded by the Alzheimer’s Association.
Besides the ComForCare franchise, you can also franchise two other senior care chains in the Best Life Brands portfolio. There’s At Your Side and CarePatrol. Meanwhile, those interested in real estate franchising can go for Blue Moon Estate Sales.
Before we discuss the ComForCare Home Care franchise cost, learn more about other franchise information regarding starting one.
Training
Franchisees and the staff will undergo four training phases.
The first session occurs after signing the Franchise Agreement (FA). It involves online and self-study plus directed sessions with the franchisor. The franchisee can accomplish this training phase for two to three weeks.
The next phase is held at the franchisor’s headquarters, having only ten days to accomplish it.
Finally, the last two phases happen on-site or agreed-upon location. As for the third phase, franchisees can complete it within two to three weeks. Meanwhile, the last phase happens after opening the site and can be accomplished within 32 to 40 hours. Plus, there’s also the Private Duty Nursing training program, wherein trainees can complete within two to three business days.
Also, the franchisor may hold additional training sessions that may require a franchisee’s attendance.
Territory and Obligations
ComForCare Franchise Systems, LLC (the franchisor) sets a territory based on the population and franchise type. Not to mention, the exclusive territory is also based on the boundaries of a U.S. Zip Code. This will be indicated in the FA. Because of this, no other franchise will be allowed to operate, as indicated in the Exclusive Area.
For the deluxe franchise, it must range between 25,000 to 35,000 individuals. Meanwhile, for the standard one, it should range between 15,000 to 25,000 individuals.
As for obligations, franchisors expect franchisees to supervise full-time. A franchisee must also delegate either a marketing or administrative employee for full-time employment. For ComForCare, they define a full-time shift is completed at least 35 hours a week. Meanwhile, nurses and caregivers would render part-time shifts. Their responsibilities are monitoring clinical-related activities, training, and following physician orders.
A franchise should provide services regularly (eight hours a day, five hours a week). Meanwhile, emergency services should be available every day for 24 hours. Plus, franchisees should only offer and sell the products that the franchisor approved and may not sell any other products or services.
An initial term for any ComForCare franchise is ten years. Franchisees may opt to renew and add two more 10-year terms provided they meet requirements.
ComForCare Home Care Franchise Cost
The initial ComForCare Home Franchise cost ranges from $79,275 to $150,400. Other prices include royalty, marketing, technology, and conference fees. You may check the tables below for your reference.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $49,500 |
| Travel Expenses for Training | $4,550 | $7,000 |
| Real Estate & Related Expenses – 3 Months | $2,250 | $4,500 |
| Office Equipment | $2,300 | $6,000 |
| Computer Systems – 3 Months | $3,000 | $5,000 |
| Signs | $100 | $500 |
| Miscellaneous Opening Costs | $1,200 | $5,000 |
| Licensing Fees | $0 | $6,000 |
| Accreditation Fees | $0 | $5,000 |
| Insurance – 3 Months | $1,875 | $2,400 |
| Office Supplies | $1,000 | $2,000 |
| Local Marketing – 3 Months | $3,750 | $7,500 |
| Recruiting Expenses – 3 Months | $2,250 | $2,250 |
| Additional Funds – 3 Months | $22,000 | $51,500 |
| ESTIMATED TOTAL | $79,275 | $150,400 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of gross sales with a minimum royalty fee per two-week billing period. |
| General Marketing Fee | 1% of gross sales with a minimum general marketing Fee per two-week billing period. |
| National Advertising Fee | 1% of gross sales with a minimum national advertising fee per two-week billing period. |
| Technology Fee | $500 per month. |
| Electronic Claims Management Fee | Varies. |
| G-Suite Fee | $13.50 per month, per G-Suite account. |
| essentialALZ Exam | Currently, $55 per exam, per person. |
| Local Marketing Spend | 2% of gross sales. |
| Accounting Software Fee | Varies. |
| Annual Conference Fee | Up to $750 per person for the first two attendees; Up to $350 for each additional attendee. |
| Annual Conference Absentee Fee | $1,500 |
| Regional Meeting Fee | Up to $250 per person. |
| Regional Meeting Absentee Fee | $500 |
| Training for Additional Persons | $2,000 |
| Supplemental Training at the Franchisee’s Office | $300 per day plus expenses. |
| Renewal Fee | $7,500 |
| Independent Agency Acquisition Fee | $20,000 |
| Business Transfer Fee | $10,000 at the time of transfer if the transfer involves 50% or more change of ownership. If the transfer involves less than a 50% change of ownership, the transfer fee will be calculated based upon the percentage of ownership change. |
| Business Transfer Training Reserve | $10,000 |
| Third-Party Broker Listing Fee | Varies by broker. |
| Examination/Audit of the Franchisee’s Records and Under Reporting Penalty | $300 per day per person plus: expenses, full amount of any underpayment, $5,000 penalty, and interest on any underpayment. |
| Customer and Location Infraction Fee | $2.00 per billable hour plus a penalty of $5,000. |
| Client Resolution Fee | Greater of $500 or $50/hour. |
| Benchmarking Non-Participation Fee | $1,000 |
| Late Reporting Fee | Up to $150 per week for each individual payment past due. |
| Interest | Lesser of 18% or the maximum amount allowed by state law. |
| Reimbursement of Monies Paid by the Franchisor on the Franchisee’s Behalf | Varies. |
Did You Know?
- Entrepreneur included ComForCare in the Franchise 500 2020 list. Their rank on the list is 352.
- Even if the franchisor doesn’t grant any financial assistance, they listed how a potential franchisee can pay for the ComForCare franchise cost and other expenses. Potential franchisees can get portfolios, unsecured, and even SBA loans. Some may even use their retirement account to get started.
- ComForCare received many recognitions and accolades over the years for its franchising and home care services. Two of their most recent awards are from Franchise Gator and Home Care Pulse. For Franchise Gator, they rank #34 on their Top 100. On the other hand, select locations and franchises won the awards from Home Care Pulse in 2019 and 2020.
- According to ComForCare, most franchise owners have a 33% gross margin.
A potential franchisee doesn’t need prior experience in senior care to start a ComForCare franchise. The training provided by the senior care chain is sufficient to guide owners-to-be in starting a ComForCare franchise. If you’re ready to start your franchise, you can apply by completing their Franchise Questionnaire. You can find it here. However, if you need to learn more about the franchise, you can request information on the website. Request more information here.
Get more franchise information here at Franchise How!