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Comfort Keepers Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What Are the Initial Investment Costs for a Comfort Keepers Franchise?
To open a Comfort Keepers franchise, you will need to consider an initial investment that ranges from $105,050 to $176,200. This includes a franchise fee of $55,000. Additionally, franchisees should be prepared for ongoing costs, including a royalty fee of 5% of revenue and a marketing fee of 2%. It's essential to ensure you have the required cash on hand, as well as a net worth between $100,000 and $250,000 to qualify for ownership.
What Is the Revenue Potential for Comfort Keepers Franchisees?
Comfort Keepers franchises have demonstrated strong revenue potential, with an average annual revenue of approximately $1,145,631 per unit. The median annual revenue stands at $833,822, showcasing the brand's ability to generate significant income. However, it's important to note that revenues can vary widely, with the lowest reported annual revenue at $35,841 and the highest reaching $13,654,979. Understanding these figures can help you gauge the financial viability of your investment.
What Are the Breakeven and Payback Periods for Comfort Keepers?
Franchisees can expect a breakeven time of about 24 months after opening their Comfort Keepers unit. This timeline is crucial for potential investors to consider when evaluating the financial landscape of the franchise. Additionally, the investment payback period is relatively short, estimated at just 12 months, indicating that franchisees could start recouping their initial investment quickly, provided they effectively manage operations and drive sales.
How Many Comfort Keepers Units Are in Operation?
As of 2023, Comfort Keepers operates a total of 635 units, comprised of 529 franchised locations and 106 corporate-owned units. The number of franchised units has seen a slight decline from 554 in 2021 to 529 in 2023, while corporate units have remained relatively stable. This data reflects the brand's presence in the market and may influence your decision as a potential franchisee regarding competition and support from the franchise network.
Comfort Keepers Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Comfort Keepers Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 662 | 640 | 635 |
| Net Change YoY | -22 | -5 | |
| Franchised Units | 554 | 535 | 529 |
| Net Change YoY | -19 | -6 | |
| Corporate Units | 108 | 105 | 106 |
| Net Change YoY | -3 | 1 |
Investment Overview
Comfort Keepers offers a range of initial investment options, with a low end of $105,050 and a high end of $176,200. The initial franchise fee is set at $55,000, while ongoing royalties are 5% of gross sales, complemented by a 2% marketing fee. Prospective franchisees should be prepared with a net worth between $100,000 and $250,000 to ensure financial stability as they embark on this venture.
Revenue Potential
The average annual revenue per Comfort Keepers unit stands at approximately $1,145,631, with a median of $833,822. Revenue performance varies significantly, with the lowest reported annual revenue at $35,841 and the highest reaching $13,654,979. This wide revenue spectrum highlights the potential for profitability, depending on factors such as location and management.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 24 months. The investment payback period is notably shorter, averaging just 12 months. This quick return on investment can be an attractive factor for entrepreneurs looking to enter the home care industry with a reputable brand.
Franchise Growth
Comfort Keepers has shown a consistent presence in the market, with 554 franchised units in 2021, which slightly decreased to 529 units by 2023. The number of corporate-owned units has remained relatively stable, indicating a solid foundation for franchise support and operational consistency.
Operational Expenses
The average operational expenses for a Comfort Keepers franchise total around $86,319,080 annually. Major cost components include employee compensation and benefits, which account for a significant portion of expenses, alongside advertising and marketing costs. Understanding these expenses is crucial for franchisees to manage their financial performance effectively.
Brand Commitment
Comfort Keepers is dedicated to providing exceptional in-home care services, enhancing the quality of life for seniors and their families. The brand’s mission revolves around delivering compassionate and personalized care, ensuring that franchisees are equipped with the necessary tools and support to succeed in their local markets while positively impacting their communities.
Frequently Asked Questions
The initial investment for a Comfort Keepers franchise ranges from $105,050 to $176,200, which includes a franchise fee of $55,000.