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

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

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

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

Section V – Presentation and analysis of Synergy HomeCare’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, maximum, and minimum gross sales per business and average gross profit margin for the 119 multi-unit franchised Synergy HomeCare businesses (operating 378 franchised units) that have been in operation for 1 year or more as of December 31, 2023

• 2023 average, median, maximum, and minimum gross sales per business and average gross profit margin for the 38 single-unit franchised Synergy HomeCare businesses that have been in operation for 1 year or more as of December 31, 2023

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

Section I – Synergy HomeCare Franchise Costs

• Franchise Fee:  $50,000
• Real Estate/Rent:  $1,416 to $6,517
• Utility Deposits:  $0 to $354
• Leasehold Improvements:  $0 to $1,772
• Furniture, Fixtures, and Equipment:  $589 to $3,544
• Software:  $884 to $1,185
• Computers and Printer:  $1,179 to $4,147
• Insurance (including Fidelity/Crime Coverage):  $3,538 to $7,109
• Signage:  $589 to $2,370
• Office Equipment and Supplies:  $884 to $3,555
• Training:   $3,909 to $5,705
• Licenses and Permits:  $0 to $5,925
• Legal and Accounting:  $589 to $12,042
• Legal and Compliance Toolkit:  $1,000
• Opening Inventory:  $3,937 to $6,437
• Dues and Subscriptions:  $0 to $592
• Additional Funds – 3 Months:  $4,634 to $38,224
• Total Estimated Synergy HomeCare Franchise Costs:  $73,148 to $150,479

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

• Royalty Fee:  5% of Gross Sales

• Minimum Royalty Fee:  the difference between (a) 5% of Gross Sales from the prior month, and (b) the Royalty Fee that would have been payable had you obtained the Minimum Sales Quota

• Marketing Fund Contribution:  2% of Gross Sales

• Minimum Marketing Fund Contribution Fee:  the difference between (a) 2% of Gross Sales from the prior month, and (b) the Royalty Fee that would have been payable had you obtained the Minimum Sales Quota

• Minimum Local Advertising Requirement:  the greater of $300 or at least 2% of Gross Sales per month

• Advertising Service Fees and Costs:  Synergy’s then-current fee (which now is $250 per month), plus the cost to use an advertising firm in your Protected Territory

Section III – Number of Franchised and Company-Owned Synergy HomeCare Outlets

Franchised

2021

• Outlets at the Start of the Year:  364
• Outlets at the End of the Year:  406
• Net Change:  +42

2022

• Outlets at the Start of the Year:  406
• Outlets at the End of the Year:  454
• Net Change:  +48

2023

• Outlets at the Start of the Year:  454
• Outlets at the End of the Year:  499
• Net Change:  +45

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 Synergy HomeCare Franchise

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

• For the purposes of this Item 19, each Synergy HomeCare “Unit” refers to a single Protected Territory. Many Synergy HomeCare Businesses operate more than one Synergy HomeCare Unit because they have multiple Protected Territories.

• As of December 31, 2023, there were a total of 183 Synergy HomeCare Businesses in operation with a total of 454 Units.

• The following is a statement of the “Average Annual Gross Sales” of 157 Synergy HomeCare Businesses consisting of 416 Units that have been in operation for 1 year or more as of December 31, 2023, for the period from January 1, 2023 to December 31, 2023.

• Twenty-three Synergy HomeCare Businesses, consisting of 35 Units, were not included in the information below because the Synergy HomeCare Businesses had not been in operation for 1 year or more as of December 31, 2023 or the businesses closed during the 2023 calendar year.

• Three other Synergy HomeCare businesses, consisting of 3 units, were not included in the information below because they are “mini” territories with less than 20,000 seniors age 65 or older.

• “Average Annual Gross Sales” was calculated by taking the total Gross Sales reported for each Synergy HomeCare Business by a franchisee during the 2023 calendar year and dividing it by the number of Synergy HomeCare Businesses in the Number of Years of Operation.

• The franchisor has presented Average Annual Gross Sales by Synergy HomeCare Businesses instead of by individual Units because its franchisees report Gross Sales by business and not by Units.

• Of the Synergy HomeCare Businesses in the statement, 38 of them operated one Unit and the rest operated two or more Units.

• These statements have not been prepared in accordance with generally accepted accounting principles. The figures were compiled from data received from the Synergy HomeCare franchisees using a uniform system of reporting Gross Sales to the franchisor.

• All of the Synergy HomeCare Businesses offered substantially the same services to the public. Substantially the same services were offered by the franchisor to the Synergy HomeCare Businesses upon which the data is based.

Multi-Unit Franchise Businesses

Number of Years in Operation:  Over 10 Years

• Number of Synergy HomeCare Businesses:  59
• Average Annual Gross Sales Per Business:  $2,492,862
• Median Annual Gross Sales Per Business:  $2,054,739
• Maximum Annual Gross Sales Per Business:  $12,527,438
• Minimum Annual Gross Sales Per Business:  $64,763
• Average Gross Profit Margin:  51%

Number of Years in Operation:  6 to 9 Years

• Number of Synergy HomeCare Businesses:  22
• Average Annual Gross Sales Per Business:  $1,873,354
• Median Annual Gross Sales Per Business:  $1,474,194
• Maximum Annual Gross Sales Per Business:  $6,243,716
• Minimum Annual Gross Sales Per Business:  $185,137
• Average Gross Profit Margin:  51%

Number of Years in Operation:  1 to 5 Years

• Number of Synergy HomeCare Businesses:  38
• Average Annual Gross Sales Per Business:  $955,842
• Median Annual Gross Sales Per Business:  $788,672
• Maximum Annual Gross Sales Per Business:  $3,217,597
• Minimum Annual Gross Sales Per Business:  $58,607
• Average Gross Profit Margin:  53%

Number of Years in Operation:  Over 1 Year

• Number of Synergy HomeCare Businesses:  119
• Average Annual Gross Sales Per Business:  $1,887,518
• Median Annual Gross Sales Per Business:  $1,458,764
• Maximum Annual Gross Sales Per Business:  $12,527,438
• Minimum Annual Gross Sales Per Business:  $58,607
• Average Gross Profit Margin:  51%

Single-Unit Franchise Businesses

Number of Years in Operation:  Over 10 Years

• Number of Synergy HomeCare Businesses:  15
• Average Annual Gross Sales Per Business:  $1,983,566
• Median Annual Gross Sales Per Business:  $1,427,470
• Maximum Annual Gross Sales Per Business:  $4,995,204
• Minimum Annual Gross Sales Per Business:  $516,703
• Average Gross Profit Margin:  53%

Number of Years in Operation:  6 to 9 Years

• Number of Synergy HomeCare Businesses:  8
• Average Annual Gross Sales Per Business:  $1,162,925
• Median Annual Gross Sales Per Business:  $852,696
• Maximum Annual Gross Sales Per Business:  $3,418,609
• Minimum Annual Gross Sales Per Business:  $444,751
• Average Gross Profit Margin:  55%

Number of Years in Operation:  1 to 5 Years

• Number of Synergy HomeCare Businesses:  15
• Average Annual Gross Sales Per Business:  $488,501
• Median Annual Gross Sales Per Business:  $511,764
• Maximum Annual Gross Sales Per Business:  $1,206,522
• Minimum Annual Gross Sales Per Business:  $68,380
• Average Gross Profit Margin:  50%

Number of Years in Operation:  Over 1 Year

• Number of Synergy HomeCare Businesses:  38
• Average Annual Gross Sales Per Business:  $1,220,642
• Median Annual Gross Sales Per Business:  $661,534
• Maximum Annual Gross Sales Per Business:  $4,995,204
• Minimum Annual Gross Sales Per Business:  $68,380
• Average Gross Profit Margin:  53%

• Average Gross Profit Margin is defined as Gross Margin divided by Revenues. Gross Margin is defined as Revenues less Cost of Goods Sold. Cost of Goods Sold includes only wages paid to caregivers, excluding state and federal payroll taxes and workers’ compensation insurance.

• The information described above is based on Synergy HomeCare Businesses open and operating for at least 1 year and does not include information based on Synergy HomeCare Businesses that have been operating for less than 1 year.

• These figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• You should conduct an independent investigation of the costs and expenses you will incur in operating your Synergy HomeCare Business. Some Synergy HomeCare Businesses have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

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