Homewatch CareGivers Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$121,640 - $177,830
Franchise Fee
$15,000
Total US Locations
224
Business Summary
Homewatch CareGivers operates businesses that provide in-home care services, including companionship, personal care, complex personal care, and nursing services. These services are delivered by trained home health aides, personal care providers, certified nurse assistants, licensed practical nurses, and registered nurses to seniors and clients of all ages who are disabled, rehabilitating, or convalescing.
Corporate History
Homewatch CareGivers has a history dating back to January 1996, when its predecessor, Homewatch CareGivers, LLC, began offering franchises. On May 14, 2021, as part of a securitization transaction, Homewatch CareGivers Franchising SPE LLC was organized and took over as the franchisor, officially beginning to offer franchises under this new entity on May 17, 2021.
Financial Overview
Investment Range
$121,640 - $177,830
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$50,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$3,993
Equipment Costs (High)
$9,123
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Homewatch CareGivers' parent company, AB Assetco LLC, and its indirect parent, Authority Brands Inc., have received unqualified audit opinions, indicating that the financial positions are presented fairly. However, both companies reported significant impairment losses in 2024. AB Assetco LLC recorded an impairment loss of $17,775 related to its Successware software system. Authority Brands Inc. reported total impairment losses of $23,240 in 2024, primarily due to the Successware software, the abandonment of its Color World business, and the sale of DoodyCalls retail operations. Additionally, Authority Brands Inc. incurred a loss of $10,276 from the sale of its Monster New Tree Service LLC retail operations. Neither financial statement expressed substantial doubt about the companies' ability to continue as a going concern.
Financing Details
Homewatch CareGivers offers direct financing for a portion of the initial franchise fee. Franchisees may finance up to 75% of the Franchise Fee and any applicable Additional Seniors Fee, payable in up to 36 monthly installments at an annual interest rate of 12%. This financing is not available for transactions involving brokers or other third-party referral sources. Homewatch CareGivers does not offer any other direct or indirect financing and will not guarantee loans or other obligations.
Performance Metrics
Total US Locations
224
Franchised Units
224
Corporate Units
0
Avg Square Footage
650
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Homewatch CareGivers has two disclosed litigation cases. One case, filed in December 2016 against former franchisees for breach of contract, unjust enrichment, and misappropriation of trade secrets, was concluded in 2018 with a judgment in favor of Homewatch CareGivers. The other is a collection lawsuit filed in August 2024 by Homewatch CareGivers Franchising SPE LLC against two individuals.
Bankruptcy History
Homewatch CareGivers has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Homewatch CareGivers franchise, franchisees must provide written notice of their desire to renew between six and twelve months before the agreement expires. They must be in good standing, with no defaults or litigation with Homewatch CareGivers or its affiliates, and maintain a good record of customer service and Brand Standards compliance. Franchisees must also pay a renewal fee of $5,000, sign a general release of claims, meet current training requirements, and prove their right to remain at the approved location for the renewal term. Additionally, they must remodel, refurbish, or renovate their premises and vehicles, and update their computer systems to meet current Brand Standards. The new Franchise Agreement they sign may have materially different terms, including adjusted territories and different fee structures.
Training & Support Program
Franchisor Assistance
Homewatch CareGivers provides extensive pre-opening and ongoing support. Before opening, franchisees receive initial training, assistance with ordering equipment and supplies from designated vendors, access to the Operations Manual and Franchisee Portal, and help setting up Call Center accounts and acquiring software packages. They also receive support in creating a pre-opening and grand opening marketing plan, general opening support, and a 52-week Business Implementation Program to build the business. Ongoing support includes additional required and optional training programs, development and maintenance of Brand Standards, management of the Franchisee Portal, notification of vendor specifications, Brand Standards assessments, Brand Fund management and creative materials, review of local advertising, management of social media accounts, and monitoring of customer warranty programs. Additionally, Homewatch CareGivers manages contracts and relationships with Key Accounts.
Initial Training Hours
184
Training Location
Primarily online/virtual for pre-training, and in-person at Denver, Colorado for classroom training, though it may also be virtual or at an alternative designated location.
Ongoing Support
Homewatch CareGivers provides ongoing support through additional required and optional training programs, and by developing and maintaining Brand Standards. They manage the Franchisee Portal for communications and resources and notify franchisees of approved vendors. The franchisor also runs Brand Standards assessment programs, manages the Brand Fund, and reviews franchisee advertising and promotional materials. They manage social media accounts that promote the brand and monitor compliance with any customer warranty programs. Additionally, Homewatch CareGivers manages contracts and relationships with Key Accounts, and franchisees are required to attend an annual convention and may participate in regional meetings.
Franchise Requirements
Ideal Candidate Profile
Homewatch CareGivers seeks individuals or business entities who meet their general qualifications and are prepared to invest the effort to own and operate a business. Franchisees must designate a 'Key Person' who will be responsible for the day-to-day operations and have the authority to make business decisions. This Key Person must own at least 5% of the franchise entity (unless otherwise agreed), successfully complete the training program, and may be required to work on-site at the business office.
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
Territory Size Requirements
Homewatch CareGivers defines its franchise territories based on a total population of 35,000 to 38,000 seniors. The franchisor uses third-party demographic data to determine the number of seniors within a territory. Once agreed upon, the territory is specifically defined in an appendix to the Franchise Agreement, often by zip codes. Franchisees may also add zip codes to their existing territory at the franchisor's discretion, incurring an additional fee per senior in the added area.
Staffing Notes
Homewatch CareGivers franchisees must maintain adequate staffing to meet Brand Standards, with sole responsibility for all employment decisions, including recruiting, hiring, training (beyond initial franchisor training), compensation, and discipline of employees. They are required to enroll all caregiver employees in the Homewatch CareGivers Academy. Franchisees must designate a Key Person responsible for day-to-day operations and who may be required to work on-site. All employees must be clearly informed that the franchisee is their employer, not Homewatch CareGivers. Staffing may also include initial and periodic drug testing and background checks as part of Brand Standards.