What was the average gross margin for Caring Senior Service franchisees?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Median Gross Billings | $921,349 | |
|---|---|---|
| Number and Percentage of Franchisees Offices That | 19 or 47.5% | |
| Met or Are Greater Than Average | ||
| Average Gross Margin | 49.34% (22 or 55% met or were greater than the average) | |
| Median Gross Margin | 50.12% | |
| Franchisee Offices with First Full 12 Months of Operations in 2024: 2024 Gross Billings | ||
| Number of Franchises | 2 | |
| Range of Gross Billings | $1,194,273 to $475,724 | |
| Average Annual Gross Billings | $834,999 | |
| Median Gross Billings | $834,999 | |
| Number and Percentage of Franchisees Offices That | 1 or 50% | |
| Met or Are Greater Than Average | ||
| Average Gross Margin | 46.98% (1 or 50% met or were greater than the average) | |
| Median Gross Margin | 46.98% | |
| Franchisee Offices with Second Full 12 Months of Operations in 2024: 2024 Gross Billings | ||
| Number of Franchises | 2 | |
| Range of Gross Billings | $1,336,735 to $265,679 | |
| Average Annual Gross Billings | $801,207 | |
| Median Gross Billings | $801,207 | |
| Number and Percentage of Franchisees Offices That | 1 or 50% | |
| Met or Are Greater Than Average | ||
| Average Gross Margin | 57.73% (1 or 50% met or were greater than the average) | |
| Median Gross Margin | 57.73% | |
| Hours Billed by Month During the First 12 Months in Operation | ||
| (By Franchises with Less than 5 Years in Operation) | ||
| Franchisee | Months 1 to 12 | |
| 1 | 94 | |
| 2 | 77 | |
| 31 | 0 | |
| 4 | 662 | |
| 5 | 50 | |
| 6 | 39 | |
| 7 | 3 | |
| 8 | 5 | |
| AVG | 116 | |
| MED | 45 | |
| Hours Billed by Month During the Second 12 Months in Operation | ||
| (By Franchises with Less than 5 Years in Operation) | ||
| Franchisee | ||
| 1 | 2,644 | |
| 2 | 1,924 | |
| 32 | 1,227 | |
| 4 | 892 | |
| 5 | 1,171 | |
| 6 | 720 | |
| 7 | 1,556 | |
| 8 | 515 | Note 1. Franchisee Number 3 has two Territories, whereas the remaining Franchisees included in the above tables each have only one Territory. |
Note 2. The hours billed were obtained from our proprietary business management software, Tendio.
Note 3. The following table lists the states in which each Franchisee's Territory is located and their related first full month in operation.
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 specific group of franchisees being considered. For all 40 franchisee offices, the average gross margin was 49.34%, with 55% of franchisees meeting or exceeding this average. For the 24 franchisee offices that maintained the minimum required staff, the average gross margin was 51.38%, with 33.33% of those franchisees meeting or exceeding that average. For franchisee offices in their first full 12 months of operations in 2024, the average gross margin was 46.98%, with 50% meeting or exceeding that average. Finally, for franchisee offices in 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 as Gross Billings less Caregiver Pay expenses, divided 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 when comparing these figures to their own potential financial performance.
These figures represent historical financial information based on existing franchisees' past performance. The FDD explicitly states that individual results may differ, and there is no assurance that a new franchisee will achieve the same levels of gross margin. It is essential for prospective franchisees to conduct their own independent investigation of the costs and expenses they will incur while operating a Caring Senior Service franchise. This includes considering factors such as local market conditions, staffing costs, and other operating expenses to determine realistic financial projections.