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SYNERGY HomeCare Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What Are the Initial Investment Requirements for a SYNERGY HomeCare Franchise?
The initial investment for a SYNERGY HomeCare franchise ranges from $48,148 to $190,479, which includes a franchise fee of $50,000. Aspiring franchisees should also have a cash requirement of $50,000 and a net worth between $500,000 and $1,000,000 to qualify. This investment covers essential startup costs and helps ensure you have adequate resources to establish your business.
What Are the Financial Performance Metrics for SYNERGY HomeCare Franchisees?
SYNERGY HomeCare franchises report an average annual revenue of $1,220,642, with a median revenue of $1,458,764. The lowest annual revenue recorded is $68,380, while the highest reaches $12,527,438. With a breakeven time of approximately 12 months and an investment payback period of 15 months, franchisees can anticipate a relatively quick return on their investment under the right circumstances.
What Are the Ongoing Fees Associated with a SYNERGY HomeCare Franchise?
Franchisees of SYNERGY HomeCare are subject to ongoing fees, including a 5% royalty fee on gross sales and a 2% marketing fee. These fees contribute to the overall support and branding efforts of the franchise, ensuring that franchisees can benefit from a unified marketing strategy and operational assistance.
How Many SYNERGY HomeCare Units Are Currently Operating?
As of 2023, SYNERGY HomeCare has grown to 499 franchised units, up from 406 in 2021. This steady growth reflects the increasing demand for home care services and the brand's ability to attract new franchisees. Notably, there are no corporate-owned units, indicating a focus on franchising as the primary model for expansion.
SYNERGY HomeCare Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
SYNERGY HomeCare Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 406 | 454 | 499 |
| Net Change YoY | 48 | 45 | |
| Franchised Units | 406 | 454 | 499 |
| Net Change YoY | 48 | 45 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The SYNERGY HomeCare franchise offers a low to moderate initial investment range, with costs starting at $48,148 and going up to $190,479. The initial franchise fee is set at $50,000, providing franchisees access to a well-established business model in the home care industry. The required cash investment is $50,000, with a net worth requirement between $500,000 and $1,000,000, making it accessible for a variety of aspiring entrepreneurs.
Revenue Potential
Franchisees can expect significant revenue potential, with average annual revenue per unit reported at $1,887,518. The median annual revenue stands at $1,458,764, showcasing the profitability of SYNERGY HomeCare locations. However, revenue can vary widely, with the lowest annual revenue recorded at $68,380 and the highest at $12,527,438, reflecting the importance of location and operational management.
Fees and Royalties
The SYNERGY HomeCare franchise imposes a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These fees are designed to support ongoing brand development and marketing efforts, ensuring franchisees benefit from a strong national presence and local advertising initiatives.
Franchise Growth
The SYNERGY HomeCare network has shown consistent growth, increasing from 406 franchised units in 2021 to 499 in 2023. This upward trend indicates a strong market demand for home care services and the brand's ability to attract new franchisees. The absence of corporate-owned units suggests a focus on franchising as the primary growth strategy.
Operational Insights
Franchisees should be aware of the average annual operating expenses, which total approximately $612,205, accounting for 50.2% of revenue. Key expenses include real estate, utilities, insurance, and salaries. Understanding these costs is crucial for maintaining profitability and ensuring efficient operations within each franchise unit.
Breakeven and Payback
Franchisees can anticipate a breakeven period of around 12 months, with an investment payback time of approximately 15 months. These timelines are favorable for new business owners, offering a relatively quick return on investment and the potential for early profitability in the competitive home care market.
Frequently Asked Questions
The initial investment for a SYNERGY HomeCare franchise ranges from $48,148 to $190,479, which includes a franchise fee of $50,000.