Comfort Keepers Franchise: Sales, Costs & Profits (2023)

With 786 businesses globally, of which the vast majority are US franchised-owned (550+ as of 2023), Comfort Keepers is one of the leader in the senior home care industry in the US.

Like most senior home care businesses, it’s a low-cost high-profits business. But how profitable? How much does it really cost? Should you really invest in a Comfort Keepers franchise?

With an initial investment of $136,000, it’s indeed quite affordable among all senior home care franchises. As far as turnover, one franchise makes $1,031,000 on average per year.

Want to know more? In this article we’re looking at Comfort Keepers and its Franchise Disclosure Document to find out all you should know about its financials. Let’s dive in!

Key stats

Franchise fee	$50,000
Royalty fee	5.0%
Marketing fee	4.0%
Investment (mid-point)	$136,000
Average sales	$1,031,000
Sales to investment ratio	7.6x
Payback period	3-4 years
Minimum net worth	$300,000
Minimum liquid capital	$100,000

About Comfort Keepers

Comfort Keepers is an in-home provider chain headquartered in Irvine, California.

Comfort Keepers caregivers provide in-home care services, companion services and in-home technology for the elderly to allow them to remain in the privacy and comfort of their homes safely.

It was founded in 1998 in Springfield, Ohio, by Kris Butler, a home health aide, to provide more than in-home medical care. Today, the service offers an individualized approach to care that helps seniors thrive and achieve greater well-being in the comfort of their homes while providing franchisees with flexible shifts and building genuine friendships with clients.

The in-home care service began franchising in 1999 and it has grown to over 786 locations in 13 countries as of 2021, with 553 franchises in the US.

Comfort Keepers has been recognized as one of the fastest-growing in-home care franchises in the country and offers franchisees an attractive business opportunity in the industry, with the 65+ population estimated to reach over 70 million in the next 30 years.

Comfort Keepers 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.

Comfort Keepers franchise costs

You would have to invest an average of $136,000 to open a Comfort Keepers franchise.

The investment covers all the start-up costs you may need to open a Comfort Keepers franchised business. You must pay the franchisor an initial franchise fee of $50,000. In addition to this franchise fee, the investment also covers:

• Formulation costs: licensing
• Equipment: furniture and equipment.
• Initial marketing fees: advertising, marketing, promotion, etc.
• Operating costs: professional fees, business premises, insurance, training expenses, organizational expenses, telephone and utility expenses, carer training, background screening, additional funds for 3 months, etc.

Startup costs

Here’s the full breakdown of costs:

Type of Expenditure	Amount
Initial franchise fee	$50,000
Formulation costs	$0 – $10,000
Equipment	$3,500 – $8,000
Initial marketing fees	$2,300 – $10,000
Operating costs	$44,250 – $93,200
Total	$100,050 – $171,200

Comfort Keepers franchise fees

Comfort Keepers franchise sales

On average, a Comfort Keepers franchise makes $1,031,000 net revenue per year.

This number is the average net revenue per franchise for 529 of the 535 franchised businesses that operated every month during the period September 2021 through August 2022.

Actually, net revenue varies significantly: from $5,000 up to $12 million for the most successful franchise…

Here’s the net revenue by franchise based on the number of months in operations:

Net Revenue	Average	Median
73 or more	$1,089,364	$733,754
61 to 72	$789,912	$672,154
49 to 60	$592,971	$735,739
37 to 48	$347,474	$293,394
25 to 36	$386,762	$214,135
12 to 24	$206,147	$187,223
12 months or more	$1,030,763	$702,394

Is Comfort Keepers a good franchise investment?

If we assume a 10% net profit margin we find that Comfort Keepers has an excellent 3-4 years payback.

In other words, we estimate that on average as a franchisee you would be able to repay investors and creditors within 3 to 4 years maximum by using the profits generated by the business itself.

This is an excellent payback in line with most senior home care franchises. Indeed, it’s a typically low-investment / high-profits business model.

Note that we assumed a 2 years revenue ramp-up as we rightfully assume you wouldn’t reach the average net revenue of $1,031,000 on day 1.

Disclaimer

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