What is the average gross margin for Caring Senior Service franchisees?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) | Summary | |
|---|---|---|---|
| (Section 21.10 of the FA Applies) | |||
| Franchisee Offices with Minimum Required Staff: 2024 Gross Billings | |||
| Number of Franchises | 24 | ||
| Range of Gross Billings | $2,661,635 to $475,724 | ||
| Average Annual Gross Billings | $1,262,903 | ||
| Median Gross Billings | $1,177,988 | ||
| Number and Percentage of Franchisees Offices That | 11 or 45.8% | ||
| Met or Are Greater Than Average | |||
| Average Gross Margin | 51.38% (8 or 33.33% met or were greater than the average) | ||
| Median Gross Margin | 50.41% | ||
| All Franchisee Offices: 2024 Gross Billings | |||
| Number of Franchisee Offices | 40 | ||
| Range of Gross Billings | $2,661,635 to $88,963 | ||
| Average Annual Gross Billings | $953,065 | #### Notes: |
- Gross Billings – This represents the Gross Billings for each franchised business in the sample for the period January 1, 2024 to December 31, 2024. The franchisee Gross Billings are those amounts reported by the franchisees to us. We have not audited the reports, nor have franchisees confirmed that their reports are prepared in accordance with generally accepted accounting principles.
The term "Gross Billings" means all amounts clients are obligated to pay in connection with the sale of products and services related to the Franchised Business (including all amounts invoiced to clients), regardless of collection, less any sales taxes or taxes collected by franchisee from clients for transmittal to the appropriate taxing authority and authorized discounts, plus business interruption insurance proceeds.
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- Gross Margin This term, as used in the above charts, is calculated as Gross Billings, less Caregiver Pay expenses, divided by Gross Billings. In this calculation, Gross Billings does not include billed amounts for products sold to clients. "Caregiver Pay" expenses exclude the employer's portion of payroll taxes and workers' compensation.
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- The "Minimum Required Staff" includes, specifically, one individual acting as a full-time Agency Director, one individual acting as a full-time Care Manager, and one individual acting as a full-
time Business's Homecare Consultant.
Source: Item 19 — Financial Performance Representations (FDD pages 45–48)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the average gross margin varies depending on the group of franchisees being considered. For the 24 franchisee offices with the minimum required staff, the average gross margin is 51.38%, with 33.33% of those offices meeting or exceeding that average. When considering all 40 franchisee offices, the average gross margin is 49.34%, and 55% of those offices met or exceeded that average. For the two franchisee offices with their first full 12 months of operations in 2024, the average gross margin was 46.98%, with 50% meeting or exceeding that average. For the two franchisee offices with their second full 12 months of operations in 2024, the average gross margin was 57.73%, with 50% meeting or exceeding that average.
It's important to understand how Caring Senior Service calculates gross margin. The FDD states that gross margin is calculated by subtracting Caregiver Pay expenses from Gross Billings and then dividing by Gross Billings. Gross Billings does not include billed amounts for products sold to clients, and Caregiver Pay expenses exclude the employer's portion of payroll taxes and workers' compensation. This definition is crucial for a prospective franchisee to understand, as it impacts how profitability is assessed.
Prospective franchisees should also note that these figures are based on past performance and that individual results may vary. The FDD explicitly states that there is no assurance that a new franchisee will achieve the same levels of gross margin. It is essential for potential franchisees to conduct their own independent investigation of the costs and expenses they will incur while operating a Caring Senior Service franchise. This includes analyzing local market conditions, managing caregiver costs, and effectively pricing services to achieve desired margins. Contacting existing franchisees, as suggested in the FDD, can provide valuable insights into real-world financial performance and operational challenges.