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Comfort Keepers Franchise Costs $100K – $171K (+ 2024 Profits)

Comfort Keepers, founded in 1998, is a distinguished provider of in-home care services aimed primarily at seniors. Headquartered in Irvine, California, Comfort Keepers quickly began franchising in 1999, reflecting its initial success and demand for services.

Over the years, the company has expanded significantly, boasting multiple units spread across multiple countries, including the United States, Canada, the UK, and Australia, among others.

Comfort Keepers sets itself apart in the senior care market with its unique approach to care, known as Interactive Caregiving. This approach emphasizes physical, mental, and social engagement, helping seniors maintain an active and enjoyable lifestyle in the comfort of their own homes. This method not only differentiates Comfort Keepers from its competitors but also enhances the quality of life for its clients.

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

Initial investment

Type of ExpenditureAmount
Combined Deposit Fee and Initial Franchise Fee$55,000
Professional Fees$1,500 – $10,000
Business Premises$6,000 – $24,000
Furniture and Equipment$3,500 – $8,000
Insurance$3,100 – $6,800
Expenses Related to Initial Training$3,000 – $6,000
Organizational Expenses/Supplies/Printing$650 – $1,150
Telephone and other utility deposits$550 – $1,650
Advertising, Marketing and Promotion$2,300 – $10,000
Licensure$0 – $10,000
Caregiver Training$1,500 – $3,000
Background Screening$360 – $600
Total$105,000 – $176,000

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 for Comfort Keepers is $50,000. This fee is a part of the overall investment required to start a Comfort Keepers franchise, which varies based on various factors such as location and the scale of operation​.

Royalty Fee

Standard Offering: 5% of Gross Sales with a Minimum Royalty Fee per month.

Reduced Initial Fee Offering: 6% to 7% of Gross Sales depending on operation month, with a Minimum Royalty Fee Per Month.

Marketing/Advertising Fee

The marketing fee is 1% of Gross Sales with a Minimum General Service Fee per two-week billing period.

Technology Fee

Franchisees pay a non-refundable monthly Technology Fee of $100, covering costs associated with operational technologies.

revenue

Revenue & Profits

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

Franchise pros and cons

The Pros:

  • Pre Opening training and support: The franchisor offers its franchisees detailed classroom, online and on-site training about the business systems and shares proven strategies for sales, marketing, client services, staffing, finance and more.
  • Exclusive territory protection: Comfort Keepers grants its franchisees their own zipcode-based territory to operate in, as defined in the franchise agreement. It does not authorize any other franchise or run a competing business in the protected area.
  • Financing assistance: The franchisor offers its franchisees in-house financing options for qualified buyers as well as third-party financing to cover the franchise fee and ongoing costs.
  • Marketing and advertising: Comfort Keepers provides its franchisees with turnkey marketing systems to drive brand awareness. These include Co-Op advertising programs, national media, social media, regional advertising, email marketing, loyalty program apps and more.
  • Simple franchise operation: A Comfort Keepers franchise can be operated with a minimum of two staff members and few inventory requirements. Franchisees can get started with fewer developmental and staffing costs.

The Cons:

  • No absentee ownership: The franchise does not present a passive investment opportunity. It requires franchisees to actively participate in their outlets’ day-to-day operations and management.
  • Not a part-time business: The franchisor requires its franchisees to have their centers open on a full-time basis.
  • Not a home-based business: The franchise cannot be operated from home or a mobile unit. The franchisees must have a fixed office space, a retail facility or a warehouse.

How to open a Comfort Keepers franchise

1. Research the Opportunity

  • Understand the Brand: Learn about Comfort Keepers, its business model, market position, and the level of demand for senior care services in your area.
  • Review Financial Requirements: Assess the initial investment needed, ongoing fees, and financial performance of existing franchises.
  • Evaluate Personal Fit: Consider if this franchise matches your business goals, passion for senior care, and willingness to adhere to Comfort Keepers’ operational models.

2. Initial Inquiry and Application

  • Contact Comfort Keepers: Reach out via their franchise inquiry form or contact information provided on their franchise website.
  • Submit Application: Provide your business background, financial information, and any other details required by Comfort Keepers to assess your suitability as a franchisee.

3. Attend Discovery Day

  • Visit Headquarters: Comfort Keepers typically invites potential franchisees to their headquarters for a discovery day, providing an opportunity to meet the team, understand the business deeply, and ask questions.
  • Experience the Culture and Operations: Engage with the corporate team and possibly visit existing franchise locations to see the business in action.

4. Review Franchise Disclosure Document (FDD)

  • Receive and Review FDD: Carefully read the Franchise Disclosure Document provided by Comfort Keepers. This document contains essential information about the franchisor, the franchise system, and legal and financial aspects.
  • Consult with Professionals: It’s advisable to consult with a lawyer and an accountant specializing in franchise businesses to understand the obligations and commitments.

5. Secure Financing

  • Assess Funding Options: Determine how you will fund the franchise purchase and operations, whether through personal savings, loans, or investor funds.
  • Apply for Financing: If needed, apply for loans. Comfort Keepers may offer guidance on financing options or partnerships with financial institutions that understand their franchise model.

6. Sign the Franchise Agreement

  • Finalize Terms: Once you are ready and all conditions are met, sign the franchise agreement with Comfort Keepers. This legal document will outline all the terms of your franchise ownership.
  • Pay Initial Franchise Fee: This fee secures your franchise rights and access to the brand, training, and support systems.

7. Training and Establishment

  • Complete Training Program: Participate in the comprehensive training program provided by Comfort Keepers, which may include operational procedures, marketing strategies, and staff management.
  • Set Up Business Operations: Find a suitable location as per the guidelines, hire staff, and set up your office with the necessary technology and equipment.

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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