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ComForCare Franchise Costs $73K – $275K (+ 2024 Profits)

ComForCare Home Care is a franchise that offers an array of personal and professional care services to individuals who require assistance at home. Founded in 1996 and beginning to franchise in 2001, ComForCare has grown substantially over the years, recording dozens of franchise locations across the United States.

The company is headquartered in Bloomfield Hills, Michigan, and is a part of Best Life Brands, a group specialized in long-term care franchising.

ComForCare differentiates itself by providing comprehensive, client-centered care services which include helping with daily activities, offering specialized programs like DementiaWise for those with Alzheimer’s or other forms of dementia, and providing private-duty nursing services. This variety allows franchisees to meet a broad spectrum of client needs and preferences, enhancing their ability to customize care.

a financial plan for a franchise
a financial plan for a franchise

Initial investment

Type of ExpenditureAmount (Personal Care Services Franchise)
Initial Franchise Fee$30,000 – $59,000
Travel Expenses for Training$0 – $8,000
Real Estate & Related Expenses – 3 months$2,000 – $3,400
Office Equipment$2,300 – $6,800
Computer Systems – 3 Months$3,000 – $5,000
Signs$100 – $600
Miscellaneous Opening Costs$1,200 – $5,600
Licensing Fees$0 – $6,000
Accreditation Fees$0 – $10,000
Insurance – 3 months$1,900 – $3,700
Office Supplies$1,000 – $2,400
Local Marketing – 3 Months$6,000
Recruiting Expenses – 3 Months$2,250
Additional Funds – 3-6 Months$24,000 – $46,000
Total$73,000 – $164,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The Initial Franchise Fee ranges from $29,500 to $59,000, depending on the type of franchise business setup.

Royalty Fee

The Royalty Fee varies from 5% to 7% of Gross Sales, with a minimum monthly fee based on the business’s operational month.

Marketing/Advertising Fee

The National Advertising Fee is 1% of Gross Sales with a minimum fee per two-week billing period, adjustable based on operational requirements.

Technology Fee

The Technology Fee is $100 per month, covering costs associated with the operation of the franchised business using various technologies.

revenue

Revenue & Profits

a financial plan for a franchise
a financial plan for a franchise

Franchise pros and cons

The Pros

  • Third-party financing: The franchisor provides its franchisees with financing through third-party associates for the startup costs, franchise fees, equipment, inventory and payroll.
  • Exclusive territory: The franchisor grants the franchisee protected territories to operate their businesses in, defined by individual zip codes. It does not license any other franchise or operate similar businesses in the protected location.
  • Diversified revenue streams: With a diversified service mix, ComForCare Home Care provides franchisees with multiple ways to boost sales and improve revenue earning potential. These include medical staffing, hospital-specific discharge planning programs, onsite programs in elder care communities and emergency response programs, among others.
  • Quality training and support: The franchisor has a detailed training program consisting of classroom and on-the-job hours. It trains franchisees about the business systems, setting up their franchises, compliance, hiring qualified staff, customer service and sales.
  • Marketing and publicity: The franchisor helps franchisees create awareness about their services, attract clients and maintain high customer retention rates. It offers them solid marketing and advertising systems such as web development, email marketing, national and regional advertising and social media.
  • Site selection and development: The franchisor provides its franchisees with site selection assistance to identify a suitable location in terms of demographics and helps them set up their clinics.

The Cons

  • Not a home-based opportunity: A comfort franchise cannot be run from home or a vehicle. Franchisees must have a fixed office space, retail facility or warehouse.
  • Not a passive investment: The franchise does not allow for semi-absentee ownership. Franchisees must actively take part in the decision-making and running of their franchises.
  • Not a part-time business: The clinics must be open full-time for at least 40 hours per week.

How to open a ComForCare franchise

1. Initial Inquiry

  • Gather Information: Research ComForCare to understand their business model, franchise support, and industry positioning.
  • Contact ComForCare: Reach out via their website to express interest and request detailed franchise information.

2. Review Franchise Disclosure Document (FDD)

  • Obtain and Review the FDD: ComForCare will provide you with their FDD which details the obligations and rights of the franchisor and franchisee, including fees, investment costs, and legal obligations.
  • Legal and Financial Consultation: Review the FDD with a franchise attorney and a financial advisor to understand the terms thoroughly and assess any potential risks.

3. Financial Assessment and Arrangement

  • Financial Planning: Assess your financial resources to ensure you meet the investment requirements, including franchise fees and startup costs.
  • Secure Financing: If additional funding is needed, explore financing options which may include loans, savings, or financial partnerships.

4. Application Submission and Approval

  • Submit Your Application: Complete the official franchise application that will detail your financial standing, business experience, and personal information.
  • Interview: Attend an interview or a series of interviews with ComForCare representatives to discuss your application and potential as a franchisee.

5. Training and Certification

  • Training Program: Undergo required training provided by ComForCare, which includes operational procedures, care standards, customer service, and administrative functions.
  • Certifications: Obtain any necessary certifications required to operate a home care business, which may include health care credentials and business licenses.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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