SYNERGY HomeCare Franchise Sales, Costs & Profits (2023)

Since it started franchising in 2005, SYNERGY HomeCare has grown up steadily and now has close to 400 franchised businesses across the US.

It’s indeed a popular choice among franchisees who want to get into the senior home care industry (or the medical industry for that matter). We think there’s a good reason for that: it’s the most affordable franchise in the industry with an average cost of (only) $109,000.

But what about profits? The average SYNERGY franchise records $1,518,000 in sales per year, which suggests a very profitable business.

In this article we’re looking at SYNERGY franchises and the latest FDD to find out how much the franchise (really) costs, and how profitable it really is. Let’s dive in!

Key stats

Franchise fee	$50,000
Royalty fee	5.0%
Marketing fee	4.0%
Investment (mid-point)	$109,000
Average sales	$1,518,000
Sales to investment ratio	14x
Payback period	3-4 years
Minimum net worth	$150,000
Minimum liquid capital	$50,000

About SYNERGY HomeCare

SYNERGY HomeCare is a network of in-home care agencies based in Tempe, Arizona, that provides in-home care and support services to people of all ages and abilities, such as senior in-home care and companionship, specialized care, hospital-to-home care and others.

SYNERGY HomeCare was founded in 1999 by Peter Tourian and has grown to become one of the top-performing in-home care providers in the country. It began franchising in 2005 and had opened 396 franchises in the US by 2022.

With 70 million Americans estimated to be over 65 by 2030, SYNERGY HomeCare helps care-minded and compassionate franchise owners build a robust business opportunity by helping people feel, see and experience more in their lives.

As the need for home care services increases, SYNERGY HomeCare is well positioned as a non-medical care provider to continue giving entrepreneurs a platform to help those in need and serve their communities while bettering themselves.

SYNERGY HomeCare franchise pros and cons

Pros

• Exclusive territory protection: The franchisor grants its franchisees the right to operate in a protected territory. Franchisees have the potential for growth without facing internal competition.
• Multiple revenue streams: Franchisees get multiple channels to boost their earnings and improve their bottom lines through diversified service mix and return clients.
• Third-party financing: The franchisor provides its franchisees with financial assistance through third-party partners for startup costs and franchise fees.
• Marketing and advertising: The brand supports its franchisees in their public relations and building awareness through dedicated marketing systems such as ad templates, email marketing, national media, regional advertising, social media and co-op advertising campaigns.
• Quality training: SYNERGY Homecare offers its franchisees a detailed classroom and on-site training program. It trains them in the business concept, operations, staff management, and customer service. Also, it trains them on how to successfully launch their centers and growth strategies.
• Site selection and construction: The franchisor provides its franchisees with site selection guidance to find a suitable location. Also, it helps them with lease negotiations and the build-out of their clinics.
• Simple operations: The franchise can be run with few staff members and no inventories, reducing operational costs.

Cons

• Not a home-based business: The franchise cannot be operated from home or a mobile unit. Franchisees must have an office space, retail facility or a warehouse.
• Not a passive investment opportunity: The franchise does not allow for absentee ownership. Franchisees must be actively involved in the daily operations and management of their agencies.
• Not a part-time business: The franchise center must be open full-time for at least 40 hours per week.
• No global presence: The franchise does not have locations outside of the US. It may be difficult to market in international markets.

SYNERGY HomeCare franchise costs

To start a SYNERGY HomeCare franchise you would have to invest on average:

• $100,000 for a SYNERGY HomeCare franchised business with one full territory
• $140,000 to open a SYNERGY HomeCare franchised business with two full territories
• $88,000 to open a SYNERGY HomeCare franchised business with a mini-protected territory

The investment covers all the start-up costs you may need to open a senior home care 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: utility deposits, leasehold improvements, permits and licenses, legal and accounting, legal and compliance toolkit, opening inventory, dues and subscriptions, etc.
• Equipment: furniture, fixtures, and equipment; software; computers and printers; office equipment and supplies, etc.
• Operating costs: rent, insurance, signage, training, opening inventory, additional funds for 3 months, etc.

Startup costs (one full territory)

One Full Territory:

Type of Expenditure	Amount
Initial franchise fee	$50,000
Formulation costs	$2,070 – $14,155
Equipment	$3,209 – $11,225
Operating costs	$14,007 – $55,532
Total	$69,286 – $130,912

Startup costs (2 full territories)

Type of Expenditure	Amount
Initial franchise fee	$90,000
Formulation costs	$6,307 – $20,192
Equipment	$3,209 – $11,225
Operating costs	$9,770 – $49,495
Total	$109,286 – $170,912

Startup costs (mini territory)

Type of Expenditure	Amount
Initial franchise fee	$25,000 – $49,998
Formulation costs	$6,307 – $20,192
Equipment	$3,209 – $11,225
Operating costs	$9,770 – $49,495
Total	$44,286 – $130,910

SYNERGY HomeCare franchise fees

SYNERGY HomeCare franchise revenue

On average, a Synergy HomeCare franchise makes $1,518,000 in sales per year. This number is the weighted average annual sales of multiunit franchise businesses ($1,757,000, 96 units) and single-unit franchise businesses ($1,007,000, 45 units) that operated in 2021.

Is SYNERGY HomeCare a good franchise investment?

By comparing the initial investment of $109,000 (on average) to the expected profits, we estimate that SYNERGY franchises have a 3-4 years payback, which is excellent for a franchise.

It’s also pretty much in line with most senior home care franchises.

In other words, as a franchisee you would be able to repay the initial investment (to investors or any other creditors – e.g. banks – who invested in your business) within 3 to 4 years on average.

Note that we assumed a 10% net profit margin and a 2-year revenue ramp-up as we assume you wouldn’t be able to reach the $1,518,000 average yearly revenue on day one.

Disclaimer

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