Risk Score
Pending analysis
Investment Range
$116,950 - $188,200
Franchise Fee
$41,250
Min Cash Required
$37,590
Total US Locations
619
Business Summary
Comfort Keepers operates a distinctive business that provides in-home care for the elderly and other adults needing assistance with daily living. This includes homemaker/companionship care, personal care, and personal technology services and equipment. Certain qualified franchisees may also offer approved private duty nursing services. Care is typically provided in the client's home or other facilities like assisted living facilities. Homemaker/companionship services cover companionship, meal preparation, light housekeeping, shopping assistance, grooming and dressing guidance, and help with recreational activities. Personal care services focus on essential daily activities such as eating, bathing, and dressing. Comfort Keepers also offers personal technology services and equipment, branded as SafetyChoice®, which includes personal emergency response systems and medication management systems. Franchisees hire employees to deliver these care services after providing orientation and training.
Corporate History
Comfort Keepers Franchising, Inc. was incorporated under Ohio law on February 8, 1999. The company's charter was restated on February 7, 2003, for recapitalization, which is noted as the inception date for accounting purposes. Comfort Keepers has been actively granting and supporting its franchises since March 1999. The brand expanded its service offerings in June 2008 by introducing personal technology services and equipment under the SafetyChoice® mark. Comfort Keepers initially operated a company-owned business similar to its franchises in Toledo, Ohio, from March 1999 until December 2003, when it was converted into a franchised location. Since March 2012, Comfort Keepers has also managed franchised businesses on behalf of its affiliate, SDX Home Care Operations, L.L.C. The company has focused exclusively on this line of business and has not sold franchises for any other types of businesses.
Financial Overview
Investment Range
$116,950 - $188,200
Franchise Fee (Low)
$41,250
Franchise Fee (High)
$55,000
Minimum Cash Required
$37,590
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$5,400
Equipment Costs (High)
$10,000
Working Capital
$43,795
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Comfort Keepers' financial statements, audited by independent accountants, indicate a sound financial presentation. However, recent activities show a strategic divestiture of company-owned operations. During the fiscal year ended August 31, 2024, Comfort Keepers sold 28 SDX-owned locations and reclassified 19 remaining unsold locations as assets held for sale. This divestment resulted in goodwill impairment charges of $6,592,151 recorded in discontinued operations. Subsequent to the fiscal year, Comfort Keepers sold an additional 17 SDX locations for approximately $3.6 million. Furthermore, Comfort Keepers settled a civil investigation by the California Attorney General for $500,000, and has accrued $346,091 for a separate matter involving potential overpayments for services in one SDX location.
Financing Details
Comfort Keepers does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
619
Franchised Units
578
Corporate Units
41
Avg Square Footage
750
Franchising Since
1999
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Comfort Keepers has been involved in several legal matters. In 2016, a class action arbitration was filed by a former employee of a Comfort Keepers franchisee, alleging wage and hour violations for unpaid overtime. Comfort Keepers contributed $10,000 to an overall settlement of $188,000, and all parties were dismissed in 2018. An earlier class action lawsuit in California, filed in 2012 by a former franchisee employee, also claimed wage and hour violations, asserting that Comfort Keepers instructed the franchisee not to pay overtime. That case settled in 2014, with the franchisee paying $110,000 and Comfort Keepers paying $4,500 to the franchisee. In 2018, the Washington State Attorney General initiated a civil investigation into Comfort Keepers' franchise agreement provisions that restricted franchisees from soliciting managerial-level employees. Comfort Keepers denied wrongdoing but settled by agreeing to remove such provisions from future agreements and not enforce them. In 2019, Comfort Keepers was involved in litigation against its Quebec Master Franchisee, seeking agreement cancellation, injunctive relief, royalties, and damages for non-competition and trademark misuse. This matter settled in 2019, resulting in the termination of the Master Franchise Agreement and a transition period for the franchisee. Most recently, in 2022, the California Attorney General began a civil investigation into provisions in Comfort Keepers' client services agreement, including non-solicit and liquidated damages clauses, alleging unlawful restraint on business. Comfort Keepers and the Department of Justice agreed to a settlement, effective October 2024, involving a $500,000 payment, removal of the direct hire provision from California client agreements, and implementation of franchise standards to ensure compliance with California law.
Bankruptcy History
Comfort Keepers has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Comfort Keepers franchisees must give written notice 120 days before their agreement expires. They and all involved related parties must have substantially complied with all material provisions of the agreement throughout the term and be in full compliance at the time of renewal. Franchisees must also meet Comfort Keepers' current training requirements for renewing franchisees, sign the then-current form of Renewal Agreement (including a guaranty and a confidentiality/non-compete agreement, and any other ancillary agreements), and execute a general release of claims in favor of Comfort Keepers. A renewal fee of $5,000 is also required. The new Renewal Agreement may have materially different terms, including higher royalty fees and brand fund contributions, but the franchisee's territory will remain unchanged unless they request a change and Comfort Keepers agrees.
Training & Support Program
Franchisor Assistance
Comfort Keepers provides extensive support to its franchisees. Before opening, franchisees receive initial training for up to two individuals (at least one owner), access to the Manual, and payment of the start-up fee and a one-year subscription for a designated scheduling software program (currently WellSky), including initial training. Comfort Keepers also covers the start-up fee and the first year's fees for an approved online learning system (Care Academy), along with registration fees for up to two owners to attend the next national franchisee meeting. Additionally, Comfort Keepers pays for a one-year membership with a designated human resources compliance vendor and membership in a national home care association. Ongoing support includes periodic advisory assistance via phone, email, office visits, and additional training. Comfort Keepers also provides marketing assistance, develops marketing and advertising programs, researches new services, and issues Manual revisions. Franchisees have access to Personal Technology Services and Equipment for lease or purchase, lists of approved suppliers, and coordination of periodic local, regional, and national franchisee meetings (which may be held in person or virtually).
Initial Training Hours
86
Training Location
Irvine, California
Ongoing Support
After opening, Comfort Keepers franchisees receive periodic advisory assistance, which may include support by telephone, email, office visits, and additional training, as deemed advisable by Comfort Keepers. The franchisor also provides marketing assistance and develops marketing and advertising programs, making materials available at the franchisee's expense. Comfort Keepers researches new services for franchisees to offer, and revises the Manual periodically with updates. Franchisees have access to Personal Technology Services and Equipment for lease or purchase, and receive lists of approved and designated suppliers. Comfort Keepers also coordinates periodic local, regional, and national franchisee meetings, which can be held in person, online, or via teleconference or videoconference. Franchisees or their Designated Managers must attend at least two such meetings annually.
Franchise Requirements
Ideal Candidate Profile
Comfort Keepers seeks individuals who can devote all their productive time and effort to actively managing and operating the franchised business, as well as promoting its services within their territory. Each office must be supervised by an individual who has successfully completed the initial training program, which can be the franchisee themselves or a Designated Manager. If the franchisee is an entity, an individual with an ownership interest in that entity must provide overall supervision for all franchised businesses owned. Comfort Keepers also offers a discount on the initial franchise fee to current employees of the franchisor or a franchisee who have at least 24 months of relevant work experience and own at least 51% of the voting power in the new franchise, suggesting a preference for individuals with prior experience within the system or industry.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Limited
Staff Count
2
Territory Size Requirements
Comfort Keepers defines its franchise territories as fixed geographical areas based on specified U.S. Postal Service zip codes at the time the Franchise Agreement is signed. The population within each territory is designed to be no fewer than 220,000 residents, according to U.S. Census Bureau demographics, for the initial purchaser. Depending on zip code configurations and populations, Comfort Keepers may, at its discretion, grant a larger protected territory.
Staffing Notes
Comfort Keepers franchisees must have at least two full-time employees or their equivalent to open and operate their business. These employees are in addition to caregivers, whose wages and payroll taxes are separate. Each office must be supervised by an individual, who can be the franchisee, provided they have completed Comfort Keepers' initial training program. For multi-unit owners, an individual with an ownership interest must provide overall supervision. Franchisees can designate a manager for each office, who also must complete the initial training. In states requiring licensure for personal care services, an R.N. or other professional might be necessary for client assessments, caregiver training, and supervision; franchisees may hire such professionals on an hourly basis.