Jovie logo

Jovie Franchise

Audited Financials
Child & Youth ServicesEst. 2005Westminster, CO
www.jovie.com
Financing Available

Risk Score

Pending analysis

Investment Range

$124,199 - $193,499

Franchise Fee

$29,999

Total US Locations

182

Business Summary

Jovie operates businesses that provide nanny placement services and babysitting services, including on-demand, part-time, and full-time family childcare solutions, as well as corporate back-up care. Jovie franchisees recruit, interview, screen, and train professional caregivers, manage business logistics and scheduling using proprietary technology, and handle payroll, tax filing, and insurance responsibilities for the caregivers.

Corporate History

Jovie Inc., formerly known as College Nannies & Tutors Development, Inc., was originally incorporated in Minnesota on February 28, 2005. The company began offering franchises under the "College Nannies + Sitters + Tutors" mark in May 2005. On July 1, 2016, Bright Horizons Children's Centers LLC acquired Jovie. The company continued to operate under its original branding until April 2022, when existing franchisees transitioned to the Jovie mark, and all new franchised businesses adopted it. On August 30, 2023, the legal entity name was formally amended to Jovie Inc. Bright Horizons, Jovie's ultimate parent company, also manages other services like SitterCity.com and Steve and Kate's Camp.

Financial Overview

Investment Range

$124,199 - $193,499

Franchise Fee (Low)

$29,999

Franchise Fee (High)

$49,999

Royalty %

5%

Marketing %

2%

Equipment Costs (Low)

$4,200

Equipment Costs (High)

$32,300

Working Capital

$50,000

Audited Financials

Yes

Offers Financing

Yes

Audit Opinion

Unqualified opinion

Financial Health Notes

The franchisor, Jovie, has a concerning financial condition. The company has negative working capital, with current liabilities significantly exceeding current assets ($5,212,218 in liabilities versus $1,801,384 in assets for 2024). Jovie also reported an accumulated deficit of over $3 million and a net loss of $879,662 for 2024. These financial indicators have led to a special risk disclosure in the FDD, which explicitly states that Jovie's financial condition calls into question its ability to provide services and support to franchisees.

Financing Details

Jovie offers direct financing for a portion of the initial franchise fee, provided franchisees meet Jovie's credit standards. Franchisees must make a down payment of at least 20% of the total initial franchise fee, with the remaining balance, plus interest, payable over a 24-month period. The interest rate is the greater of 2% over the prime rate (currently resulting in 9.5%) or 7%. A personal guarantee is required as security. Defaulting on the loan can lead to the loss of the franchise and the requirement to repay the outstanding loan balance. While Jovie does not currently sell these notes to third parties, it reserves the right to do so. Jovie does not offer financing for any other portions of the initial investment.

Performance Metrics

Total US Locations

182

Franchised Units

165

Corporate Units

17

Franchising Since

2005

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise agreement, Jovie franchisees must provide written notice between six and three months before the current term expires. They must be in good standing, meaning there are no outstanding breaches of their existing agreement, and they must have substantially performed all terms and conditions throughout the initial term. Franchisees are also required to upgrade their business to Jovie's then-current standards, which may involve reasonable expenditures without limitation. They must complete any additional training Jovie requires and pay a renewal fee of $3,000. Finally, franchisees must sign Jovie's then-current franchise agreement, which may have materially different terms, and execute a general release of claims against Jovie, to the fullest extent permitted by law (with specific state exceptions outlined in Exhibit E).

Training & Support Program

Franchisor Assistance

Jovie provides extensive support to its franchisees. Before opening, Jovie designates the territory and provides specifications for signage, layout, and décor. It also offers advice on staff selection, training, and supervision, and furnishes specifications for all required equipment, inventory, and supplies. Jovie advises on initial marketing, recruitment, and public relations efforts, and provides pre-training and an initial training/certification program, along with a loan of its confidential operating manuals. After opening, Jovie provides updates to the operating manual, holds periodic conferences and meetings (which are mandatory for the Principal Operator and incur a fee), and formulates advertising and promotional programs. Franchisees also receive ongoing consultation for general business matters and assistance with resolving operating problems. Jovie conducts product research and development, performs regular inspections and evaluations of the business, and may establish quality assurance programs. Additionally, Jovie offers optional Shared Services for an additional fee, such as recruiting applicants, conducting reference checks, and providing virtual orientation.

Initial Training Hours

34

Training Location

Denver, CO and virtually

Ongoing Support

After a Jovie business opens, Jovie provides ongoing support through updates to its operating manual and holds periodic conferences or meetings that the Principal Operator must attend for a fee. Jovie also formulates and administers advertising and promotional programs for franchisees. Franchisees receive ongoing consultation for general business matters and assistance with resolving operating problems. Jovie conducts product research and development to improve the System and performs periodic inspections and evaluations of the business. Jovie may also establish performance standards and quality assurance programs. Additionally, Jovie offers optional Shared Services, such as recruiting and reference checks, for an additional fee, and may require franchisees to attend additional training for an extra cost.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Commercial

Owner Participation

Absentee Allowed

Territory Type

Limited

Territory Size Requirements

Jovie defines its franchise territories by zip codes, and the size and parameters are determined by the franchisor. A key factor in this determination is the number of "qualified households" within a zip code. A household is considered "qualified" if its income meets a specific threshold based on the cost of living index for that zip code, and if it includes at least one child under 14 years old. Jovie uses a third-party provider to gather this information. Typically, a standard-sized territory will contain at least approximately 5,000 qualified households. Other factors such as population density, growth trends, and major topographical features may also influence the actual size and boundaries.

Staffing Notes

Jovie franchisees are responsible for employing adequately trained and competent personnel. The Principal Operator must dedicate their full time and best efforts to the business. Key managers, including Family Placement Managers, Role Model Managers, and Recruiting Managers, are required to complete manager training within six months of their hire date, which can be virtual or at Jovie's national support center in Colorado. While Jovie currently does not charge for manager training, it reserves the right to impose a fee of up to $1,500 per manager annually. Franchisees must also recruit, interview, screen, and train caregivers (nannies and sitters) to provide professional services. All employees, including caregivers, are required to pass criminal and reference investigations.