2nd Family logo

2nd Family Franchise

Audited Financials
Senior CareEst. 2017Eldersburg, MD
www.2ndfamily.com

Risk Score

Pending analysis

Investment Range

$119,825 - $521,500

Franchise Fee

$40,000

Total US Locations

6

Business Summary

2nd Family operates a personal assistance and non-medical home care business. The franchised business provides non-medical assistance, care, and companionship to clients in their homes or temporary living facilities. Services offered by 2nd Family include help with personal care, meal preparation, medication reminders, light housekeeping, transportation, and general companionship.

Corporate History

2nd Family Franchising, LLC was formed in Maryland on February 20, 2017. Its parent company, 2nd Family Holdings, LLC, was formed on the same date. An affiliated company, 2nd Family Home Health Services, LLC, has operated a non-medical senior care business using the '2nd Family' marks since May 2012. 2nd Family Franchising, LLC began offering franchises on September 1, 2017.

Financial Overview

Investment Range

$119,825 - $521,500

Franchise Fee (Low)

$40,000

Franchise Fee (High)

$60,000

Royalty %

5.5%

Equipment Costs (Low)

$2,100

Equipment Costs (High)

$18,000

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The 2nd Family Franchising, LLC's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. This is listed as a special risk for potential franchisees to consider.

Financing Details

2nd Family Franchising, LLC does not offer any direct or indirect financing to its franchisees. 2nd Family Franchising, LLC also does not guarantee any notes, leases, or other obligations on behalf of its franchisees.

Performance Metrics

Total US Locations

6

Franchised Units

5

Corporate Units

1

Franchising Since

2017

Legal & Compliance Analysis

Recent Litigation

No

Bankruptcy

No

Litigation Summary

2nd Family Franchising, LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document.

Bankruptcy History

2nd Family Franchising, LLC has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their 2nd Family franchise agreement, franchisees must be in full compliance with their current agreement, not have defaulted more than three times during the current term, and provide written notice at least six months before the term ends. They will need to sign a new franchise agreement, pay a $5,000 successor agreement fee, upgrade their business assets to meet current specifications, sign a general release, and comply with current qualifications and training requirements, including any additional training.

Training & Support Program

Franchisor Assistance

2nd Family Franchising, LLC assists franchisees with pre-opening obligations, including designating territory boundaries, providing access to the confidential Operations Manual, supplying a list of required equipment and supplies, delivering initial training at its headquarters in Eldersburg, Maryland (or virtually), and offering samples of advertising materials. After opening, 2nd Family Franchising, LLC provides optional on-site or virtual training, offers mandatory additional training programs and annual conventions (up to three days each per year), provides individualized assistance by phone, video conference, email, or postal service, maintains the 2nd Family website with a link to the franchisee's business, suggests selling prices, and approves all franchisee advertising.

Initial Training Hours

50

Training Location

Eldersburg, MD/ Webinar

Ongoing Support

After opening, 2nd Family Franchising, LLC offers optional one-day on-site or virtual training, and may require franchisees to attend mandatory additional training programs for up to three days per year. Franchisees must also attend an annual business meeting or national convention for up to three days per year. Individualized assistance is provided within reasonable limits via telephone, video conference, email, or postal service. 2nd Family Franchising, LLC also provides advertising materials, maintains a website link to the franchisee's business, suggests selling prices for services, and approves all proposed advertising campaigns.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Hands-On

Territory Type

Protected

Territory Size Requirements

2nd Family territories are defined individually, covering all or a portion of a town, city, or county, and identified by contiguous zip codes. Each territory must have a minimum population of 40,000 individuals over the age of 65, based on the most recent census data and determined by a third-party mapping service. The definition considers demographics, minimum household numbers, and household incomes.

Staffing Notes

2nd Family franchisees are required to employ sufficient staff to operate the business efficiently. All employees must adhere to 2nd Family's dress code and wear identifying badges. Caregivers must be qualified, trained, and licensed, including having current licenses as certified nursing assistants or equivalent state requirements. A registered nurse must serve as the Director of Nursing. Before hiring, franchisees must conduct background checks on all prospective employees, particularly those entering clients' residences, and must not hire individuals with a propensity for violence, dishonesty, or criminal convictions.