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Boost Franchise Systems

Boost Franchise Systems, LLC
https://www.boosthomehealthcare.com
1-888-617-1106
900 Wilshire Drive, Suite 102, Troy, MI 48084-1600

Initial Investment Range

$157,650 to $433,275

Franchise Fee

$60,000 to $150,000

Boost offers franchises for the operation of a Boost franchised business that provides intermittent care ordered by a doctor and is performed by qualified health care professionals.

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Boost Franchise Systems March 17, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
3
3

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The financial statements for the ultimate parent, CFC Holding Company, LLC (CFC Holding), raise significant concerns. For fiscal year-end 2024, CFC Holding reported a net loss of over $3 million and a members' deficit (negative net worth) exceeding $27 million. The FDD also explicitly flags the franchisor's financial condition as a special risk. This financial position may affect its ability to provide support and grow the brand, presenting a substantial risk to your investment.

Potential Mitigations

  • An experienced franchise accountant must thoroughly review the consolidated financial statements, including all footnotes and debt obligations.
  • It is critical to ask the franchisor about its plans to address the ongoing losses and significant members' an accountant can help you formulate these questions.
  • Discuss the implications of the parent company's financial state on the availability of franchisee support with your business advisor.
Citations: Item 21, Exhibit A

High Franchisee Turnover

High Risk

Explanation

The franchisee turnover data in Item 20 tables indicates potential instability. While the system is small, two of the six franchises operating at the start of 2024 were reacquired by the franchisor during that year, representing a 33% reacquisition rate. Additionally, as of year-end 2024, there were 34 franchises sold but not yet open, compared to only six operating. This high ratio of unopened to open units could suggest challenges in the opening process.

Potential Mitigations

  • You should contact former franchisees listed in Exhibit H to understand their reasons for leaving the system.
  • Discuss the high number of re-acquisitions and unopened units directly with the franchisor.
  • Your business advisor can help assess the operational health of a franchise system with such a high ratio of unopened to open units.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

While rapid growth is not evident from the number of open units, Item 20 shows 34 signed agreements for franchises that are not yet open. This backlog could strain the franchisor's support systems for training, site selection, and operational assistance, especially given its limited operating history and financial condition. If many of these units open in a short period, the quality of support you receive could be diminished.

Potential Mitigations

  • Inquire with the franchisor about its specific plans to scale its support staff and infrastructure to handle the large number of incoming franchisees.
  • Questioning existing franchisees about the current quality and responsiveness of franchisor support is a crucial due diligence step.
  • Your accountant can assess the franchisor's financial statements to determine if they have allocated sufficient resources for supporting this growth.
Citations: Item 1, Item 11, Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

Boost Franchise Systems, LLC is a very young franchisor, organized in July 2021. It has a limited operating history with only six franchised outlets open by the end of 2024. The FDD also highlights this 'Short Operating History' as a special risk. Investing in a new system carries higher risk as the business model, support infrastructure, and brand recognition are not yet fully established or proven in the marketplace.

Potential Mitigations

  • Conduct extensive due diligence on the management team's prior experience in both the home healthcare industry and in managing a franchise system.
  • Have your accountant carefully analyze the financial statements to assess the company's capitalization and stability.
  • Engaging a franchise attorney to help negotiate more franchisee-favorable terms may be possible given the higher risk associated with a new system.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The home healthcare industry serves a fundamental and growing need, particularly with an aging population, and is not typically considered a fad. However, it's wise to consider how a specific business model within a stable industry adapts to changing technology, regulations, and consumer expectations to ensure its long-term relevance and viability.

Potential Mitigations

  • Engage a business advisor to research long-term trends and competitive pressures within the home healthcare market.
  • Your accountant can help you evaluate the business model's resilience to economic shifts and changes in healthcare reimbursement policies.
  • Discuss the franchisor's strategy for innovation and adaptation with both the management team and current franchisees.
Citations: Item 1, Item 11

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD package. The management personnel listed in Item 2 appear to have prior relevant experience in other franchise systems and related business sectors, including roles at Best Life Brands, ComForCare, and Safeguard Business Systems. This experience may provide a foundation for managing the franchise system. However, the effectiveness of this experience in a new system should still be verified through due diligence.

Potential Mitigations

  • A business advisor can help you investigate the track record and reputation of the management team at their previous companies.
  • Speaking with current franchisees about their direct experiences with the management team's competence and support is essential.
  • Your attorney can help you frame questions for the franchisor about how their past experience is being applied to build this new system.
Citations: Item 2

Private Equity Ownership

Medium Risk

Explanation

The franchisor's ultimate parent company is affiliated with The Riverside Company, a private equity firm. PE ownership can introduce risks, as their primary goal is often maximizing return on investment over a specific timeframe. This could potentially lead to decisions, such as increasing fees or cutting support costs, that prioritize short-term financial performance over the long-term health of franchisees and the brand.

Potential Mitigations

  • It is wise to research the private equity firm's reputation and track record with other franchise concepts it has owned.
  • Discuss with current franchisees whether they have observed any significant changes in fees, support, or strategic direction since the PE involvement.
  • Your attorney should analyze the Franchise Agreement for terms that facilitate a sale of the system, which is a common PE exit strategy.
Citations: Item 1

Non-Disclosure of Parent Company

High Risk

Explanation

The FDD discloses that the franchisor is part of a larger corporate structure under CFC Holding. The provided financial statements in Item 21 are for this ultimate parent entity, which has guaranteed the franchisor's performance. This transparency allows for a clearer view of the overall financial health of the group that backs your franchise agreement, which in this case reveals significant financial weaknesses that must be carefully considered.

Potential Mitigations

  • Your accountant must review the parent company's financials to assess the strength and potential risks associated with the entity guaranteeing the franchisor's obligations.
  • A franchise attorney should review the terms of the parent guarantee to understand its scope and limitations.
  • Discuss the relationship between the franchisor and its parent company with your business advisor to understand operational dependencies.
Citations: Item 1, Item 21, Exhibit A

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 clearly identifies the franchisor, Boost Franchise Systems, LLC, and indicates it was organized in 2021. It does not list any predecessors from which it acquired assets or that previously operated the system. Therefore, the risks associated with an undisclosed or problematic predecessor history do not appear to be present.

Potential Mitigations

  • An attorney can confirm that the corporate history described in Item 1 is complete and does not suggest any undisclosed predecessor entities.
  • A business advisor can help you research the background of the franchisor's parent companies to ensure there are no hidden historical issues.
  • Verify with existing franchisees if they are aware of any prior versions or owners of the business concept.
Citations: Not applicable

Pattern of Litigation

Medium Risk

Explanation

While Boost itself has no litigation history, its affiliated franchisors under the same parent company have been involved in several lawsuits. These include actions brought by the franchisors against franchisees for non-compete violations and actions brought by franchisees or third parties against the franchisors. This history may suggest a potentially litigious environment within the broader franchise system you are joining, which could indicate a risk of future disputes.

Potential Mitigations

  • A franchise attorney should review the nature and outcomes of the litigation involving the affiliated companies to identify any patterns.
  • Discussing the litigation history with the franchisor can provide their perspective on these past disputes.
  • It's advisable to ask current franchisees in the various affiliated brands about their relationship with the parent company and its dispute resolution approach.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
1
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
6
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
3
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
2
7
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
7
6
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.