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

Section I – Estimated initial investment (franchise costs) for a Homewatch CareGivers franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Homewatch CareGivers franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Homewatch CareGivers outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Homewatch CareGivers franchise opportunity

Section V – Presentation and analysis of Homewatch CareGivers’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low gross revenue per territory and per franchisee for the 108 Homewatch CareGivers franchisees representing 196 territories that were in operation for the entire 2023 fiscal year

• total gross revenue growth between fiscal years 2022 and 2023 for the 96 Homewatch CareGivers franchisees that were in business and reporting gross revenue as of December 31, 2022 and as of December 31, 2023

• 2019-2023 systemwide sales and year-over-year growth percentage for all Homewatch CareGivers franchisees whose businesses were operational for any part of the year (even as little as one month if the franchisee completed initial training in December of their initial year)

• 2023 average, median, high, and low gross revenue for the 78 Homewatch CareGivers franchisees who reported gross revenue greater than $0 in all 12 months of 2023 and had been in business for at least 3 years as of December 31, 2023

• 2023 average number of clients per franchisee and percentage of gross revenue by hours of care (24 hours care, 12-23 hours care, 3-11 hours care, 2 or less hours care) for 122 Homewatch CareGivers franchisees who used the centralized practice management software system, Homewatch CareGivers Care+ (“Care+”)

• 2023 average and median direct caregiver costs for 44 Homewatch CareGivers franchisees who (i) used the financial aggregation and benchmarking vendor, Qvinci, (ii) had completed and submitted to Homewatch CareGivers their financial statements for 2023, and (iii) were in business for at least 2 years as of December 31, 2023 (based on their first reported month with gross revenue greater than $0)

• 2023 average and median number of caregivers on shift per week and number of caregiver hours per week for 106 Homewatch CareGivers franchisees representing 192 territories that used Care+ practice management software

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

Section I – Homewatch CareGivers Franchise Costs

• Franchise Fee:  $50,000
• Telephone System:  $250 to $500
• Training Expenses:  $2,000 to $5,000
• Office Equipment and Computer Hardware and Off-the-Shelf Software:  $1,060 to $4,500
• Lease and Security Deposits:  $3,000 to $8,000
• Office Furniture:  $1,000 to $3,500
• Insurance:  $8,000 to $18,000
• Compliance Toolkit Fees:  $1,500
• Licenses, Permits, and Professional Fees:  $500 to $8,000
• Additional Funds (3 months):  $25,000 to $55,000
• Total Estimated Homewatch CareGivers Franchise Costs:  $92,310 to $154,000

Section II – Homewatch CareGivers’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $50,000

• Royalty Fee:  5% of Gross Revenue or the Minimum Royalty, whichever is greater. The Minimum Royalty is calculated as follows: Months 0-6: none; Months 7-12: $500; Months 13-24: $1,000; Months 25-36: $1,250; Months 37-48: $1,500; Months 49-60: $2,000; Months 61 and thereafter: $2,500

• Brand Fund Contribution:  currently, the contribution is based on your Gross Revenue for the calendar year and is payable according to the following schedule: 2% of the first $500,000 of Gross Revenue in the then-current calendar year; then 1.5% of Gross Revenue in excess of $500,000 and up to $1,000,000 in the then-current calendar year; then 1% of Gross Revenue in excess of $1,000,000 and up to $2,000,000 in the then-current calendar year; then 0.5% of Gross Revenue in excess of $2,000,000

• Local Marketing (“LM”) and/or Cooperative:  Annual Local Marketing Fee: $24,000 annually (an average of $2,000 per month) or 3% of Gross Revenue, whichever is greater (“Annual Local Marketing Fee”); Additional Local Marketing Requirement: in addition to the Annual Local Marketing Fee, you are required to spend at least $500 per month, or $6,000 annually, whichever occurs first, on additional in-person local marketing activities including participation in trade shows, industry or community events, community partnerships, and other events that Homewatch CareGivers may approve in its sole discretion from time to time.

Section III – Number of Franchised and Company-Owned Homewatch CareGivers Outlets

Franchised

2021

• Outlets at the Start of the Year:  199
• Outlets at the End of the Year:  212
• Net Change:  +13

2022

• Outlets at the Start of the Year:  212
• Outlets at the End of the Year:  222
• Net Change:  +10

2023

• Outlets at the Start of the Year:  222
• Outlets at the End of the Year:  213
• Net Change:  -9

Company-Owned

2021

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

2022

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

2023

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

Section IV – News Updates on the Homewatch CareGivers Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Homewatch CareGivers Franchise (Item 19, 2024 FDD)

• The tables below contain results of operations of Homewatch CareGivers franchised businesses located in the United States for the calendar year 2023 and calendar year 2022 (for purposes of Part 2), as reported to Homewatch CareGivers by its franchisees.

• As of December 31, 2023, there were a total of 117 Homewatch CareGivers franchisees operating a total of 213 Territories.

Part 1A – Gross Revenue by Years in Business, by Territory for the Fiscal Year Ended December 31, 2023

• Part 1 presents information on 108 franchisees representing 196 Territories that were in operation for the entire 2023 fiscal year.

• Excluded from these tables are 21 franchisees (representing 25 Territories) who closed during the 2023 fiscal year, 15 franchisees (representing 16 Territories) who opened during the 2023 fiscal year, and 1 franchisee (representing t Territory) who did not report a full 12 months of Gross Revenue.

Years in Business:  1-2 Years

• Number of Franchisees in Group:  13
• Number of Territories in Group:  15
• Aggregate Gross Revenue:  $4,932,189
• Average Gross Revenue Per Territory in Group:  $328,813
• Median Gross Revenue of Territories in Group:  $238,345
• Highest Gross Revenue of Territories in Group:  $1,386,843
• Lowest Gross Revenue of Territories in Group:  $60,001
• Number of Territories Achieving or Exceeding Group Average:  4
• Percent of Territories Achieving or Exceeding Group Average:  27%

Years in Business:  2-3 Years

• Number of Franchisees in Group:  17
• Number of Territories in Group:  19
• Aggregate Gross Revenue:  $8,667,152
• Average Gross Revenue Per Territory in Group:  $456,166
• Median Gross Revenue of Territories in Group:  $395,067
• Highest Gross Revenue of Territories in Group:  $1,438,132
• Lowest Gross Revenue of Territories in Group:  $53,247
• Number of Territories Achieving or Exceeding Group Average:  8
• Percent of Territories Achieving or Exceeding Group Average:  42%

Years in Business:  3-4 Years

• Number of Franchisees in Group:  7
• Number of Territories in Group:  8
• Aggregate Gross Revenue:  $9,379,186
• Average Gross Revenue Per Territory in Group:  $1,172,398
• Median Gross Revenue of Territories in Group:  $1,381,177
• Highest Gross Revenue of Territories in Group:  $2,312,355
• Lowest Gross Revenue of Territories in Group:  $347,414
• Number of Territories Achieving or Exceeding Group Average:  4
• Percent of Territories Achieving or Exceeding Group Average:  50%

Years in Business:  4+ Years

• Number of Franchisees in Group:  71
• Number of Territories in Group:  154
• Aggregate Gross Revenue:  $218,970,710
• Average Gross Revenue Per Territory in Group:  $1,421,888
• Median Gross Revenue of Territories in Group:  $832,655
• Highest Gross Revenue of Territories in Group:  $24,577,380
• Lowest Gross Revenue of Territories in Group:  $209,528
• Number of Territories Achieving or Exceeding Group Average:  26
• Percent of Territories Achieving or Exceeding Group Average:  17%

Total

• Number of Franchisees in Group:  108
• Number of Territories in Group:  196
• Aggregate Gross Revenue:  $241,949,237
• Average Gross Revenue Per Territory in Group:  $1,234,435
• Median Gross Revenue of Territories in Group:  $721,544
• Highest Gross Revenue of Territories in Group:  $24,577,380
• Lowest Gross Revenue of Territories in Group:  $53,247
• Number of Territories Achieving or Exceeding Group Average:  33
• Percent of Territories Achieving or Exceeding Group Average:  17%

Part 1B – Gross Revenue by Years in Business, by Franchisee for the Fiscal Year Ended December 31, 2023

Years in Business:  1-2 Years

• Number of Franchisees in Group:  13
• Number of Territories in Group:  15
• Aggregate Gross Revenue:  $4,932,189
• Average Gross Revenue Per Franchisee in Group:  $379,399
• Median Gross Revenue of Franchisees in Group:  $294,584
• Highest Gross Revenue of Franchisees in Group:  $1,386,843
• Lowest Gross Revenue of Franchisees in Group:  $60,001
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  5
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  38%

Years in Business:  2-3 Years

• Number of Franchisees in Group:  17
• Number of Territories in Group:  19
• Aggregate Gross Revenue:  $8,667,152
• Average Gross Revenue Per Franchisee in Group:  $509,832
• Median Gross Revenue of Franchisees in Group:  $501,543
• Highest Gross Revenue of Franchisees in Group:  $1,438,132
• Lowest Gross Revenue of Franchisees in Group:  $53,247
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  8
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  47%

Years in Business:  3-4 Years

• Number of Franchisees in Group:  7
• Number of Territories in Group:  8
• Aggregate Gross Revenue:  $9,379,186
• Average Gross Revenue Per Franchisee in Group:  $1,339,884
• Median Gross Revenue of Franchisees in Group:  $1,381,177
• Highest Gross Revenue of Franchisees in Group:  $2,312,355
• Lowest Gross Revenue of Franchisees in Group:  $694,828
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  4
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  57%

Years in Business:  4+ Years

• Number of Franchisees in Group:  71
• Number of Territories in Group:  154
• Aggregate Gross Revenue:  $218,970,710
• Average Gross Revenue Per Franchisee in Group:  $3,084,095
• Median Gross Revenue of Franchisees in Group:  $1,826,452
• Highest Gross Revenue of Franchisees in Group:  $49,154,759
• Lowest Gross Revenue of Franchisees in Group:  $221,193
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  16
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  23%

Total

• Number of Franchisees in Group:  108
• Number of Territories in Group:  196
• Aggregate Gross Revenue:  $241,949,237
• Average Gross Revenue Per Franchisee in Group:  $2,240,271
• Median Gross Revenue of Franchisees in Group:  $1,171,781
• Highest Gross Revenue of Franchisees in Group:  $49,154,759
• Lowest Gross Revenue of Franchisees in Group:  $53,247
• Number of Franchisees Achieving or Exceeding Average Gross Revenue:  27
• Percent of Franchisees Achieving or Exceeding Average Gross Revenue:  25%

Part 2 – Active Franchisee Gross Revenue Growth (in Business and Reporting as of December 31, 2022 to December 31, 2023)

• Part 2 below shows the total Gross Revenue growth between fiscal years 2022 and 2023 for 96 franchisees that were in business and reporting Gross Revenue as of December 31, 2022 and as of December 31, 2023.

Total Gross Revenue

• 2022:  $202,021,192
• 2023:  $236,465,862
• Year-Over-Year Growth Percentage:  17%

Part 3 – Systemwide Sales Growth

2019

• Systemwide Sales:  $155,926,017

2020

• Systemwide Sales:  $170,490,047
• Year-Over-Year Growth Percentage:  9%

2021

• Systemwide Sales:  $191,059,146
• Year-Over-Year Growth Percentage:  12%

2022

• Systemwide Sales:  $211,550,548
• Year-Over-Year Growth Percentage:  11%

2023

• Systemwide Sales:  $244,258,782
• Year-Over-Year Growth Percentage:  15%

Part 4 – Mature Franchisees Gross Revenue Performance

• Part 4 below shows data of the 78 franchisees who reported Gross Revenue greater than $0 in all 12 months of 2023 and had been in business for at least 3 years as of December 31, 2023. These 78 franchisees operated a total of 162 Territories during the 2023 fiscal year.

• The table excludes 38 franchisees (representing 49 Territories) who had been in operation less than 3 years as of December 31, 2023. It also excludes 1 franchisee (representing 2 Territories) who did not report a full 12 months of Gross Revenue.

Mature Franchisees With Less Than $1 Million in 2023 Gross Revenue

• Number of Franchisees:  23
• Number of Territories:  29
• Aggregate Gross Revenue:  $13,965,754
• Average Gross Revenue:  $607,207
• Median Gross Revenue:  $553,801
• Number of Franchisees Achieving or Exceeding Group Average:  11
• Percent of Franchisees Achieving or Exceeding Group Average:  48%
• Highest Gross Revenue in Group:  $999,065
• Lowest Gross Revenue in Group:  $221,193

Mature Franchisees With $1 Million to $2 Million in 2023 Gross Revenue

• Number of Franchisees:  23
• Number of Territories:  43
• Aggregate Gross Revenue:  $34,751,982
• Average Gross Revenue:  $1,510,956
• Median Gross Revenue:  $1,443,088
• Number of Franchisees Achieving or Exceeding Group Average:  10
• Percent of Franchisees Achieving or Exceeding Group Average:  43%
• Highest Gross Revenue in Group:  $1,996,741
• Lowest Gross Revenue in Group:  $1,035,333

Mature Franchisees With Greater Than $2 Million in 2023 Gross Revenue

• Number of Franchisees:  32
• Number of Territories:  90
• Aggregate Gross Revenue:  $179,632,161
• Average Gross Revenue:  $5,613,505
• Median Gross Revenue:  $3,072,500
• Number of Franchisees Achieving or Exceeding Group Average:  7
• Percent of Franchisees Achieving or Exceeding Group Average:  22%
• Highest Gross Revenue in Group:  $49,154,759
• Lowest Gross Revenue in Group:  $2,002,488

All Mature Franchisees

• Number of Franchisees:  78
• Number of Territories:  162
• Aggregate Gross Revenue:  $228,349,896
• Average Gross Revenue:  $2,927,563
• Median Gross Revenue:  $1,727,848
• Number of Franchisees Achieving or Exceeding Group Average:  20
• Percent of Franchisees Achieving or Exceeding Group Average:  26%
• Highest Gross Revenue in Group:  $49,154,759
• Lowest Gross Revenue in Group:  $221,193

Part 5 – 2023 Gross Revenue by Hours of Care

• Part 5 below presents a breakdown of the percentage of Gross Revenue by Hours of Care for 122 franchisees who used the centralized practice management software system, Homewatch CareGivers Care+ (“Care+”).

24 Hours Care

• Average Number of Client Per Franchisee:  2
• Percent of Gross Revenue:  2.9%

12-23 Hours Care

• Average Number of Client Per Franchisee:  14
• Percent of Gross Revenue:  27.6%

3-11 Hours Care

• Average Number of Client Per Franchisee:  75
• Percent of Gross Revenue:  59.9%

2 or Less Hours Care

• Average Number of Client Per Franchisee:  52
• Percent of Gross Revenue:  9.6%

Part 6 – Direct Caregiver Costs

• Part 6 below shows 2023 direct caregiver costs for 44 franchisees who (i) used the financial aggregation and benchmarking vendor, Qvinci, (ii) had completed and submitted to Homewatch CareGivers their financial statements for 2023, and (iii) were in business for at least 2 years as of December 31, 2023 (based on their first reported month with Gross Revenue greater than $0).

• These 44 franchisees operated a total of 85 Territories in the 2023 fiscal year.

Direct Caregiver Costs (January 2023 to December 2023)

• Average Franchise Percentage:  54%
• Top 20%:  41%
• Bottom 20%:  71%
• Median Franchise Percentage:  53%

• “Direct Caregiver Costs” is defined as caregiver wages (including applicable overtime pay) and payroll taxes.

• Average Franchise Percentage: Total direct caregiver costs for the 44 included franchisees as a percentage of total Gross Revenue for the included franchisees.

• Top 20%: Direct caregiver costs as a percentage of Gross Revenue for the top 20% (9 franchisees), ranked by the overall Direct Caregiver Costs as a percentage of Gross Revenue, with the higher ranked franchisees having lower Direct Caregiver Costs.

Part 7 – Caregiver Metrics

• Part 7 below represents caregiver metrics for 106 franchisees (representing 192 Territories) that used Care+ practice management software.

• Excluded from this Table are 21 franchisees (representing 25 Territories) who closed during the 2023 fiscal year, 15 franchisees (representing 16 Territories) who opened during the 2023 fiscal year, and 1 franchisee (representing 1 Territory) who did not report a full 12 months of Gross Revenue.

• Average Weekly Gross Revenue:  $43,051
• Total Number of Franchisees in Group:  106
• Average Number of Caregivers on Shift Per Week:  14.6
• Median Number of Caregivers on Shift Per Week:  8.1
• Number of Franchisees Above Average Number of Caregivers on Shift Per Week:  36 (34%)
• Average Number of Caregiver Hours Per Week:  1,248.60
• Median Number of Caregiver Hours Per Week:  648.1
• Number of Franchisees Above Average:  26 (25%)
• Total Territories:  192

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

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