Franchising Since: 1999
Headquarters: Irvine, California
Estimated Number of Units: 740
Franchise Description: The franchisor is CK Franchising, Inc. The franchised business is a distinctive business that operates under the “Comfort Keepers” trade name. 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 private duty nursing services.
Training Overview: The initial training program consists of education via webinars and eLearning. The initial training program includes group instruction and individual instruction. Each required attendee must attend every session in its entirety. If franchisees are signing a start-up agreement, they (if they are an individual) or (if they are an entity) an individual with equity ownership in the franchise must attend and complete all segments of the initial training program to the franchisor’s reasonable satisfaction within 60 days after signing the Franchise Agreement. Certain portions of the initial training program involve certification by third parties with associated certification costs. The franchisor may offer additional training or refresher courses periodically and may require franchisees and/or their designated manager to attend.
Territory Granted: 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 from their office, if any, at a location within the territory that they will determine. The franchisor does not need to approve the office location. 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. The 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. 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. However, the franchisor does grant limited territorial protections, which apply only if franchisees and their related parties are in good standing under the Franchise Agreement and other agreements with the franchisor. So long as franchisees do not meet the minimum performance standards they will not be in good standing.
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 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, and, unless the franchisor specifies otherwise, all other services and products that the franchisor authorizes franchisees to offer. In addition, if franchisees choose to offer personal technology services and equipment, they must offer those services and that equipment under the SafetyChoice® mark. Franchisees may offer only those services and products that the franchisor authorizes franchisees to provide.
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.
Financial Assistance: The franchisor offers financing to qualifying franchisees for a portion of the initial franchise fee to be paid under a start-up agreement or an expansion agreement and for a portion of the price for unassigned zip codes purchased in a single transaction of at least $15,000. If franchisees qualify under the VetFran program, and are signing a Start-up Agreement, the franchisor will give them a 10% discount on the initial franchise fee. 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.
Estimated Initial Investment
| Name of Fee | Low | High |
| Combined Deposit Fee and Initial 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 | $6,800 |
| 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 | $10,000 |
| Caregiver Training | $1,500 | $3,000 |
| Background Screening | $360 | $600 |
| Additional Funds – 3 months | $27,590 | $40,000 |
| ESTIMATED TOTAL | $105,050 | $176,200 |
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 $757.54 per month, as it may be adjusted annually by the increase or decrease in CPI, or 2% of monthly gross revenue. |
| Local Advertising | Minimum of $1,000 per month or 2% of gross revenue, whichever is greater. |
| Cooperative Advertising Program | As cooperative members determine. |
| National Brand Fund Collection Costs | The amount of any costs (including attorney fees) the franchisor incurs in collecting national brand fund contributions the franchisee has not paid. |
| Renewal Fee | $5,000 |
| Audit Cost | Actual cost of audit plus 18% interest on any underpayment. |
| Certification Costs | The franchisor’s actual costs, but no more than $750 per person. |
| Lost Revenue Damages | If the franchisor terminates the Franchise Agreement because of the franchisee’s breach or if the franchisee terminates the Franchise Agreement without cause, the franchisee will pay lost revenue damages to an amount specified in the FDD. |
| Training Fee for Additional Training | As the franchisor specifies. |
| Transfer Fee | Generally, the greater of $7,500 or 2% of all consideration paid in connection with the transfer, capped at $27,500 for concurrent related transfers, plus the amount of any broker commission the franchisor must pay in connection with the transfer. |
| Additional Zip Code Fee | Currently, $300 per 1,000 residents in the applicable zip code or, if the franchisor elects to conduct an auction for that zip code, the winning bid, provided that the minimum bid is $100 per 1,000 residents. |
| Interest on Late Payments | 18% or, if lower, highest rate permitted by law. |
| NSF Charge | Actual service charge that the franchisor incurs. |
| Late Fee | $300 |
| Technology Support Fee | Currently none, subject to change annually. |
| Indemnification | Amount of damages, costs, expenses, and liabilities the franchisor incurs. |
| Insurance-related Charges | If franchisees fail to obtain or maintain required insurance, the franchisor may (but need not) obtain it, and they must reimburse the franchisor for the cost of the premium(s) and the related expenses in obtaining it. |
| Attorney Fees and Legal Costs | All of the damages, costs and expenses (including reasonable attorneys’ fees and lost future profits) that the franchisor 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. |
| Out of Territory Administrative Fee | $500 and actual cost of audit (if required). |
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