SYNERGY HomeCare Franchise Sales, Costs & Profits (2023)

SYNERGY HomeCare, established in 2001 and headquartered in Gilbert, Arizona, is a recognized leader in the franchised home care industry. The franchise specializes in providing a variety of non-medical caregiving services to clients of all ages, focusing significantly on senior care, but also offering specialized care for other groups with additional needs.

These services range from personal care and companion care to specialized services that address conditions like memory loss.

What sets SYNERGY HomeCare apart in the competitive home care market is its expansive reach and impressive growth rate. With operations across 40 states, SYNERGY HomeCare has been acknowledged as one of the fastest-growing franchises, marking significant expansion in both the number and size of its franchises.

Type of Expenditure	Amount
Franchise Fee	$50,000
Real Estate/Rent	$1,000 – $6,000
Utility Deposits	$0 – $400
Leasehold Improvements	$0 – $2,000
Furniture, Fixtures & Equipment	$600 – $4,000
Software	$900 – $1,000
Computers and Printer	$1,000 – $4,000
Insurance (including Fidelity/Crime Coverage)	$4,000 – $7,000
Signage	$600 – $2,000
Office Equipment & Supplies	$900 – $4,000
Training	$4,000 – $6,000
Licenses & Permits	$0 – $6,000
Legal & Accounting	$600 – $12,000
Legal and Compliance Toolkit	$1,000
Opening Inventory	$4,000 – $6,000
Dues & Subscriptions	$0 – $1,000
Additional Funds – 3 Months	$5,000 – $38,000
Total	$73,000 – $150,000

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.

Initial Franchise Fee

The initial franchise fee for SYNERGY HomeCare varies depending on specific offers and promotions. Typically, the franchise fee is $25,000, but it may range from $25,000 to $50,000.

Royalty Fee

Royalty fees are calculated as 5% of Gross Sales, collected weekly. If the franchisee fails to meet the Minimum Sales Quota, a Minimum Royalty Fee is applicable.

Marketing/Advertising Fee

Marketing fees include contributions to a Marketing Fund and are set at 2% of Gross Sales, also collected weekly. Additional fees may be required if the franchisee fails to meet the Minimum Local Advertising Requirement.

Transfer Fees

The Transfer Fee is $25,000, payable upon demand when transferring the franchise agreement.

Franchise pros and cons

The 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.

The 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.

How to open a SYNERGY HomeCare franchise

Opening a SYNERGY HomeCare franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a SYNERGY HomeCare franchise.

1. Initial Research and Inquiry

• Learn About the Franchise: Research SYNERGY HomeCare to understand their services, franchise model, and market presence.
• Contact the Franchisor: Reach out to SYNERGY HomeCare through their franchise inquiry form to express your interest and request more detailed information.

2. Review Franchise Disclosure Document (FDD)

• Receive and Review FDD: Once you express serious interest, SYNERGY HomeCare will provide you with their Franchise Disclosure Document which contains critical details about the business, fees, legal obligations, and support provided.
• Consult Professionals: It’s advisable to review the FDD with a franchise attorney and a financial advisor to fully understand your commitments and rights.

3. Financial Assessment and Qualification

• Financial Qualification: Assess whether you meet the financial requirements specified by SYNERGY HomeCare, such as liquid capital and net worth.
• Secure Financing: If you do not have the necessary capital on hand, explore financing options. SYNERGY HomeCare may offer guidance on third-party financing.

4. Formal Application and Approval

• Submit Application: Complete the official application form to provide your business background, financial information, and other relevant details.
• Interviews and Approval: You may need to attend interviews or discussions with the franchisor’s team to assess your suitability for owning a franchise.

5. Training and Support

• Initial Training: Participate in comprehensive training programs provided by SYNERGY HomeCare, covering operational procedures, marketing strategies, and client care.
• Ongoing Support: Take advantage of continuous support in marketing, operations, and additional training to ensure your business success.

Disclaimer

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