Touching Hearts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$63,885 - $93,085
Franchise Fee
$39,500
Total US Locations
64
Business Summary
The Touching Hearts franchise provides a range of in-home care services, including high-quality personal care, non-medical assistance, companionship, and care management for older adults, persons with disabilities, and others in need of care. Touching Hearts also offers optional medical and skilled nursing care services. Franchisees operate a business using the franchisor's trademarks and proprietary system to deliver these approved services to customers.
Corporate History
Touching Hearts, Inc. began in 1996 when its founder, Renae Kummel, started offering non-medical home care services under the name "Caring Companions." This business later changed its name to "Touching Hearts at Home" in November 2006. Touching Hearts, Inc. was formally incorporated as a Minnesota corporation in October 2006 and began offering franchises in 2007. The initial company-owned branch operated from 2006 to 2009 before being sold as a franchise.
Financial Overview
Investment Range
$63,885 - $93,085
Franchise Fee (Low)
$39,500
Franchise Fee (High)
$49,500
Royalty %
6%
Equipment Costs (Low)
$4,600
Equipment Costs (High)
$10,100
Working Capital
$11,135
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Touching Hearts, Inc. has received an unqualified opinion on its financial statements, indicating that the financial position is presented fairly in all material respects. As of December 31, 2023, Touching Hearts had positive working capital of $8,294 and positive total stockholders' equity of $54,854. However, the company reported a retained earnings deficit of $(152,432) at the end of 2023. A related party transaction notes that a stockholder loaned the company $100,000 for short-term liquidity needs in 2022, though this balance decreased to $31,000 by the end of 2023.
Financing Details
Touching Hearts does not offer any direct or indirect financing to its franchisees. Additionally, it will not guarantee any notes, leases, or other obligations on behalf of franchisees.
Performance Metrics
Total US Locations
64
Franchised Units
64
Corporate Units
0
Avg Square Footage
575
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Touching Hearts has no litigation required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Touching Hearts or its executive officers have not been involved in any material lawsuits concerning the franchise, antitrust, securities laws, or other significant legal proceedings that would need to be reported.
Bankruptcy History
Touching Hearts has no bankruptcy information to report. Neither the franchisor nor its current or former executive officers have been involved in any bankruptcy proceedings that require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Touching Hearts franchisees must provide written notice of their intent to renew between 180 and 365 days before the current term expires. Franchisees must be in good standing, having substantially complied with all terms of their agreement and paid all financial obligations to Touching Hearts. They must have met or exceeded minimum monthly gross revenue levels for the preceding six months prior to renewal. Both a Principal Owner and the General Manager must complete any required new training and refresher programs. Franchisees must maintain possession of their office premises and make any reasonable capital expenditures necessary to remodel, modernize, and redecorate the office, replacing and modernizing supplies, fixtures, signs, and equipment to meet current brand standards. They must also pay a renewal fee, currently $5,000, and sign a general release of claims against Touching Hearts. The renewal will be under Touching Hearts' then-current franchise agreement, which may have terms and conditions substantially different from the original.
Training & Support Program
Franchisor Assistance
Touching Hearts provides comprehensive support to its franchisees. Before opening, Touching Hearts helps with territory designation, provides an initial inventory of advertising materials, conducts an initial training program for a Principal Owner and General Manager, offers online access to its Operations Manual, and grants access to its computer software management and reporting system. After opening, Touching Hearts offers periodic advisory assistance, including online, telephone, and on-site support (for a fee). It also conducts periodic business inspections, includes franchisee business information on its website, provides additional training sessions, offers guidance on business management, administrative, bookkeeping, accounting, and operating systems, and sponsors franchise conventions and meetings.
Initial Training Hours
32
Training Location
Nashville, TN
Ongoing Support
Touching Hearts provides ongoing support to its franchisees after opening. This includes periodic advisory assistance on operational issues, which can be delivered online, by telephone during normal business hours, or in-person at the franchisee's location (for an additional fee). Touching Hearts periodically inspects businesses to ensure System standards are met and provides advice based on these inspections. Franchisees' business information is included on the Touching Hearts website. The franchisor also offers additional training sessions periodically, which franchisees may be required to attend, covering improvements, new services, and operational procedures. Franchisees are responsible for travel and living expenses for these additional training sessions. Touching Hearts also holds or sponsors franchise conventions and meetings on various business and operational topics, for which franchisees must pay a convention fee and cover their own expenses.
Franchise Requirements
Ideal Candidate Profile
Touching Hearts seeks individuals who are capable of designating a general manager, who will be approved by Touching Hearts, and who will successfully complete the initial training program. This General Manager must devote their personal full-time attention to the day-to-day operations of the Touching Hearts business and must not engage in any other business or activity that conflicts with their obligations. Principal Owners (those with a 10% or greater interest) must also attend the initial training if they are not the General Manager, sign a Guaranty, and comply with confidentiality and non-compete covenants. General requirements include management skill, experience, and business acumen.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Touching Hearts franchisees receive a protected territory that generally includes a senior population (individuals over 65) of at least 20,000 residents. Franchisees must operate their business from an approved retail office, industrial park, or other commercial location that is centrally situated within this designated Protected Territory.
Staffing Notes
Touching Hearts requires franchisees to designate a General Manager, who must be approved by the franchisor and successfully complete the initial training program. This General Manager is responsible for the day-to-day operations and must dedicate their personal full time and attention to managing the business, without engaging in conflicting activities. If the General Manager is not a Principal Owner, a Principal Owner must also attend initial training. Touching Hearts franchisees are solely responsible for hiring all employees for the business, including establishing their terms of employment, scheduling, benefits, and compensation. Franchisees must conduct background checks on all potential employees using an approved vendor and implement a training program for their staff that complies with franchisor requirements. They must maintain a sufficient staff of trained employees to operate the business in line with Touching Hearts' standards, ensuring all employees comply with necessary licenses and certifications. The business must always be under the General Manager's supervision.