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Comfort Keepers Franchise Cost & Fees

Date of Incorporation: 1998
Franchising Since: 1999
Headquarters: Dayton, Ohio

Business Description: The franchisor is CK Franchising, Inc. The business provides in-home care for the elderly and other adults who need assistance in daily living, including homemaker/companionship care, personal care, and personal technology services and equipment. In addition, certain qualified franchisees may also offer approved minimally-invasive private duty nursing services.

Franchise Offer: The franchised business is a distinctive business that operates under the Comfort Keepers trade name.

Financial Assistance: The franchisor offers financing of a portion of the initial franchise fee to qualifying franchisees who are signing a Start-up Agreement or an Expansion Agreement. The franchisor has no intent to sell, assign, or discount to a third party all or any part of the financing described above. Other than the financing described above, the franchisor does not offer direct or indirect financing. The franchisor will not guarantee franchisees’ note, lease or obligation.

Training and Assistance: The initial training program consists of three segments: the first segment, which franchisees will complete, primarily online, as a pre-requisite to the second segment. The first segment consists of approximately 60 hours of study and training activities. The second segment consists of training at the franchisor’s corporate headquarters. The corporate-based initial training segment lasts 5 days and consists of practical application, in a classroom environment, of the information learned in the first segment. The third segment is hands-on training at a Franchised Business the franchisor manages for our affiliate or at another Franchised Business. The hands-on segment of initial training at a Training Location lasts 2 to 4 days, depending on how the franchisor assesses the franchisee’s needs at the corporate-based initial training. The franchisor may offer additional training or refresher courses periodically and may require franchisees and/or their Designated Manager to attend.

Territory: Under the Franchise Agreement, the franchisor will grant franchisees a defined territory within which they will operate a single Franchised Business using the Marks and System, with their Office, if any, at a location within the Territory that they will determine and that the franchisor need not approve. The Territory will be a fixed geographical area, defined by the borders of specified U.S. Postal Service zip codes as of the date that franchisees sign the Franchise Agreement. The franchisor will list the zip codes in an attachment to the Franchise Agreement. Population within the Territory will be approximately 225,000 people (but no fewer than 220,000) when the Territory is established, based on the demographics provided by the U.S. Census Bureau, as updated by IntelleVue, a demographic and site analysis company. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns or manages, or from other channels of distribution or competitive brands that the franchisor controls.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees meet conditions, they can renew for consecutive additional 10-year terms.

Obligations and Restrictions: In order to meet Standards for client care and service, franchisees must have at least two full-time employees (or equivalent) to open and operate the Franchised Business, as specified in the Operations Manual. The Franchised Business must be supervised by an individual (who can be the franchisee) who has completed the initial training program to the franchisor’s reasonable satisfaction. Franchisees may have a Designated Manager. Franchisees and their business partner or Designated Manager must devote all of their productive time and effort to the management and operation of the Franchised Business and to the promotion of the services the franchisor authorizes franchisees to offer. Franchisees must offer their Clients homemaker/companionship services, personal care services, Personal Technology Services and Equipment under the SafetyChoice mark, and, unless the franchisor specifies otherwise, all other services and products that the franchisor authorizes franchisees to offer. Franchisees may offer only those services and products that the franchisor authorizes franchisees to provide.

Estimated Number of Units: 770

Investment Tables:
Initial Investment
Name of Fee Low High
Combined Deposit Fee and Initial Franchise Fee $45,500 $45,500
Professional Fees $1,200 $10,000
Business Premises $3,400 $5,100
Furniture and Equipment $3,500 $5,280
Insurance $3,100 $6,800
Expenses Related to Initial Training $3,000 $6,000
Organizational Expenses/ Supplies/ Printing $650 $1,150
Telephone and other Utility Deposits $550 1,650
Advertising, Marketing and Promotion $2,300 $10,000
Licensure $0 $7,000
Caregiver Training $1,500 $3,000
Background Screening $360 $600
Additional Funds - 3 months $21,301 $35,264
Estimated Total $86,161 $139,564
Other Fees
Type of Fee Amount
Royalty Fee The royalty fee will be calculated as follows:
· With respect to Gross Revenues during the first 24 months of operation of a Franchised Business under a Start-up Agreement or an acquired Franchised Business, the royalty fee is the greater of the minimum royalty fee of $300 or 5% of Gross Revenue.
· With respect to Gross Revenues beginning in the 25th month following the Start Date of a Franchised Business under a Start-up Agreement or an acquired Franchised Business, if franchisees do not meet the Minimum Performance Standards, the 5% royalty fee is calculated on the greater of Gross Revenue or MPS Gross Revenue, based on an assessment of MPS compliance that commences as of the end of the 27th month.
National brand Fund The lesser of $600 per month or 2% of monthly Gross Revenue.
Local Advertising Minimum of $1,000 per month or 2% of Gross Revenue, whichever is greater.
National Brand Fund Collection Costs The amount of any costs (including attorney fees) the franchisor incurs in collecting National Brand Fund contributions you have not paid.
Cooperative Advertising Program As Cooperative members determine.
Renewal Fee $5,000
Audit Cost Actual cost of audit plus 18% interest on any underpayment.
Certification Cost The franchisor’s actual costs, but no more than $750 per person.
Training Fee for Additional Training Currently, $250
Training Fee for Additional Training As the franchisor specifies.
Transfer Fee Generally, the greater of $5,000 or 2% of all consideration paid in connection with the transfer, capped at $25,000 for concurrent related transfers, plus the amount of any broker commission CKFI must pay in connection with the transfer.
Additional Zip Code Fee Currently, $300 per 1,000 residents in any additional zip code franchisees add to the their territory.
Interest on Late Payments 18% or, if lower, highest rate permitted by law.
NSF Charge Actual service charge the franchisor incurs.
Late Fee $225
Technology Support Fee Annual fee not to exceed $400 per platform.
Indemnification Amount of damages, costs, expenses, and liabilities the franchisor incurs.
Insurance-related Charges Cost of premium plus the franchisor’s related expenses.
Attorney Fees and Legal Costs All of the damages, costs and expenses (including reasonable attorneys’ fees and lost future profits) that CKFI incurs in connection with enforcement of its rights under the Franchise Agreement or defense against claims the franchisee brings.
Personal Technology Product Purchases and Service Fees Varies.
Meeting Fees As the franchisor specifies.

The above information has been taken from the FDD of Comfort Keepers. Year of FDD: 2016

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