Comfort Keepers are an international care provider and a wholly owned subsidiary of global food and services conglomerate, Sodexo. The company specialises in the delivery of care services to clients and patients in the comfort of their own home. Comfort Keepers have more than 700 offices worldwide and operate in 10 countries including the UK, Canada, Norway and Singapore.
Launched in 1998 and headquartered in Irvine, California, Comfort Keepers have offered franchise opportunities since 1999. The organisation delivers in-home care for the elderly and other adults who need assistance in daily living, including homemaker/companionship care, personal care, and with personal technology services and equipment. Some Comfort Keepers franchises also provide trained nurses to deliver more attentive services, including respite care, senior health and wellbeing care and other private nursing duties.
Comfort Keepers at a glance:
You can start a Comfort Keepers franchise for fairly low dollars and the liquid cash and net worth requirements should be well within the reach of many entrepreneurs at $100k and $300k, respectively. Comfort Keepers do not mandate that new franchise owners have previous care-provider experience or possess any medical credentials, although either of these attributes would be an added advantage. Franchisees must employ a minimum of two staff (including the franchise owner) and operate a dedicated office to handle administration tasks.
Take note that the company says running a successful care business is ‘hard work’ that requires strong dedication, great time management, good delegation skills and more. They also expect franchise owners to devote all efforts to growing their office and expanding their reach into the local community. This makes a Comfort Keepers franchise an unlikely candidate for remote investment.Â
Despite a fairly hefty initial franchise fee, Comfort Keepers are one of the more affordable franchise options, with set-up costs ranging from $105,000 to $176,000 depending on the size of your operation. This cost ranks as low.Â
The initial franchise fee is $55,000. Military veterans may be eligible for a 10% discount off this cost.
After opening, you are required to pay an array of ongoing fees and charges. They include:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $55,000 | $55,000 |
| Professional fees | $1,500 | $10,000 |
| Business premises | $6,000 | $24,000 |
| Furniture and equipment | $3,500 | $8,000 |
| Insurance | $3,100 | $6,700 |
| Training expenses | $3,000 | $6,000 |
| Organisational expenses/supplies/printing | $650 | $1,150 |
| Telephone and utility deposits | $550 | $1,650 |
| Advertising, marketing and promotion | $2,300 | $10,000 |
| Licensing | $0 | $10,000 |
| Caregiver training | $1,500 | $3,000 |
| Background screening | $350 | $600 |
| Additional costs – first three months | $27,500 | $40,000 |
Yes. Comfort Keepers franchises generate average gross revenues of $899,000 per year. Profit margins in the care business are notoriously slim, typically averaging 7.5% to 10% of revenues. This would deliver profits to the franchise owner of $67,400 or $89,900 on the average gross revenues noted above – a return that ranks as moderate and above the Australian average income for Australian franchise owners (all franchises) of $60,000 per year.Â
The failure rate for a Comfort Keepers franchise is 4% in year one, rising to 10% by year three. This ranks as low to moderate.
The company grants franchisees a defined territory within which they may operate a single franchised business using the Comfort Keepers brand name. The territory will be a fixed geographical area, set by the borders of specified zip codes and containing a population of approximately 225,000 people (but at least 220,000) when the territory is established, based on the demographics. Franchisees do not receive an exclusive territory.
They may face competition from other franchisees, from outlets that the franchisor owns or manages, or from other channels of distribution or competitive brands that Comfort Keepers controls. However, the company does grant limited territorial protections, which apply only if franchisees are in good standing under the terms of their franchise agreement.Â
Comfort Keepers support for franchisees includes:
International brand presence, the backing of a major conglomerate, low start-up costs, reasonable profits, an ageing Australian population and an acceptable failure rate all point towards a solid business opportunity. However, entrepreneurs should do their homework on the potential customer base in their chosen territory before jumping into a Comfort Keepers franchise. It’s not just a case of how many seniors or potential clients there are in your area, it’s how many of them can afford private care services, (which may not be covered by health insurance), and how many currently do not have care or would be willing to switch to a new provider.
Successful care businesses are built on relationships and strong networks that take time and money to achieve. Investors should be prepared for the long haul with this opportunity.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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