ComForCare Home Care Logo

ComForCare Home Care

ComForCare Franchise Systems, LLC
https://www.comforcare.com
1-800-886-4044
900 Wilshire Drive, Suite 102, Troy, MI 48084-1600

Initial Investment Range

$72,975 to $280,525

Franchise Fee

$59,000 to $153,000

ComForCare Franchise Systems, LLC offers franchises for the operation of a ComForCare Home Care franchised business that provides: (i) Personal Care Services: Non-medical in nature that include companionship, personal care for activities of daily living (ADLs) and instrumental activities of daily living (IADLs) along with homemaker/chore provider services to persons of all ages allowing them to age in place and (ii) on-site community care.

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ComForCare Home Care 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
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor explicitly warns about its financial condition. The parent company's audited financials in Exhibit A show a significant and growing Members' Deficit (negative net worth) of over $27 million in 2024 and consecutive annual net losses. This financial weakness could potentially impact the franchisor's ability to provide support, invest in the system, or meet its obligations to you, presenting a substantial risk to your investment.

Potential Mitigations

  • An experienced franchise accountant must conduct a thorough review of the parent company's financial statements, including all footnotes.
  • Discuss the implications of the negative net worth and ongoing losses on the franchisor's stability with your financial advisor.
  • Your attorney should advise on the strength and enforceability of the parent's Guarantee of Performance.
Citations: Item 21, Exhibit A

High Franchisee Turnover

Medium Risk

Explanation

Item 20 data for the last three years shows a consistent number of franchise outlets ceasing operations or being transferred. For 2024, 11 units exited the system (terminated, non-renewed, reacquired, or ceased operations) from a starting base of 228. While not an extreme rate, the consistent churn, particularly the number that 'ceased operations for other reasons,' could suggest underlying issues with franchisee profitability, satisfaction, or the business model that warrant further investigation.

Potential Mitigations

  • It is crucial to contact a significant number of former franchisees listed in Exhibit H to understand their reasons for leaving.
  • Your accountant should analyze the turnover data across all three years to identify any negative trends.
  • During discussions with current franchisees, your business advisor should help you inquire about system health and franchisee satisfaction.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

The franchise system is mature and has experienced steady, but not excessively rapid, growth over the past three years. The number of new franchises appears to be supported by the franchisor's scale. Therefore, the specific risk of support infrastructure being overwhelmed by excessively rapid expansion was not identified in the FDD package. It is generally a concern when a franchisor sells franchises faster than it can build the support staff and systems to assist them.

Potential Mitigations

  • A business advisor can help you evaluate the ratio of corporate support staff to the number of franchisees.
  • Asking existing franchisees about the quality and timeliness of support they receive is a valuable due diligence step.
Citations: Item 20, Item 21

New/Unproven Franchise System

Low Risk

Explanation

The ComForCare system began offering franchises in 2000 and has a substantial number of operating units, indicating it is a mature and established brand, not a new or unproven one. The risk of investing in a concept without a track record is not present here. For unproven systems, there is a higher risk of business model failure, weak brand recognition, and underdeveloped support systems, which can negatively impact a franchisee's potential for success.

Potential Mitigations

  • For any franchise, it is wise to have your business advisor research the brand's reputation and history in the marketplace.
  • Speaking with long-term franchisees can provide insight into the system's evolution and stability over time.
Citations: Item 1, Item 2, Item 20

Possible Fad Business

Low Risk

Explanation

The home care industry serves a growing demographic (people over 65) and addresses a fundamental, long-term societal need. This suggests the business model is based on sustained consumer demand rather than a short-lived trend or fad. Therefore, the risk of the business becoming obsolete due to shifting consumer interests appears low. A fad business carries the risk of failure once the trend passes, even if your contractual obligations remain.

Potential Mitigations

  • A business advisor can assist in researching the long-term outlook for the senior care industry in your specific market.
  • Review the franchisor's plans for service innovation and adaptation in Item 11 with your business advisor.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

Item 2 indicates that the key management personnel have extensive experience in the franchising sector and related industries. The risk associated with a franchisor team that is new to franchising or lacks relevant industry knowledge was not identified. Inexperienced management can be a significant risk, as it may lead to poor strategic decisions, inadequate franchisee support, and an unrefined operational system, potentially jeopardizing the success of the franchisees.

Potential Mitigations

  • It is always a good practice to research the professional backgrounds of the key executives listed in Item 2.
  • When speaking with current franchisees, you can inquire about their direct experiences with the management team's competence and support.
Citations: Item 2

Private Equity Ownership

High Risk

Explanation

Item 1 discloses that the franchisor is controlled by The Riverside Company, a private equity (PE) firm. This ownership structure may create a focus on maximizing short-term returns for investors, which could potentially lead to decisions that are not in the long-term best interest of franchisees. This might include increased fees, reduced support quality, or a sale of the entire system, creating uncertainty for your investment.

Potential Mitigations

  • A discussion with your business advisor about the typical operating strategies of private equity-owned franchise systems is recommended.
  • Ask current franchisees if they have observed any significant changes in fees, support, or company direction since the PE acquisition.
  • Your attorney should review the assignment clause in the Franchise Agreement to understand your rights if the system is sold.
Citations: Item 1

Non-Disclosure of Parent Company

Low Risk

Explanation

The FDD discloses that ComForCare Franchise Systems, LLC (the franchisor) is a subsidiary of Best Life Brands, LLC, which is owned by CFC Holding Company, LLC. The FDD includes the audited financial statements for the ultimate parent, CFC Holding Company, LLC, and a Guarantee of Performance. This risk was not identified, as the required parent disclosures appear to be present. Inadequate disclosure could hide financial instability at the parent level, which could affect the entire system.

Potential Mitigations

  • Your accountant should review the provided parent company financial statements and the guarantee of performance.
  • An attorney can help verify the corporate structure and the legal standing of the parent entities.
Citations: Item 1, Item 21, Exhibit A

Predecessor History Issues

Medium Risk

Explanation

Item 1 discloses predecessors to the current franchisor entity. One lawsuit in Item 3 names a predecessor, ComForCare Health Care Holdings, LLC, in a negligence claim. While the predecessor history is disclosed, it is linked to ongoing litigation which could pose a risk to the brand's reputation. Understanding the history of the system under prior ownership is important for assessing inherited risks or a pattern of issues that may persist under new management.

Potential Mitigations

  • Your attorney should review the disclosures related to predecessors in Items 1, 3, and 4.
  • Ask long-term franchisees about their experiences under the previous ownership structure.
  • A business advisor can help you research the history and reputation of the predecessor companies.
Citations: Item 1, Item 3

Pattern of Litigation

High Risk

Explanation

Item 3 discloses several lawsuits involving the franchisor, including suits initiated by the franchisor against franchisees for unpaid fees (one with a counterclaim) and a suit against the system alleging negligent care. Furthermore, Item 3 reveals regulatory actions against affiliate franchise systems for selling unregistered franchises. This pattern of litigation and regulatory issues suggests potential systemic conflicts and compliance challenges within the broader organization, which could create a litigious environment and risk for franchisees.

Potential Mitigations

  • A thorough review of all litigation and administrative actions with your franchise attorney is essential to understand the nature and potential impact of these disputes.
  • Consider the pattern of franchisor-initiated lawsuits as an indicator of how the franchisor handles disagreements.
  • Discuss the disclosed litigation with current franchisees to get their perspective on the franchisor relationship.
Citations: Item 3, Item 4
2

Disclosure & Representation Risks

Total: 15
5
3
7

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
7
7
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.

5

Territory & Competition Risks

Total: 5
3
1
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
2
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.

7

Franchisor Support Risks

Total: 4
1
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.

8

Operational Control Risks

Total: 12
1
7
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.

9

Term & Exit Risks

Total: 18
7
7
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.

10

Miscellaneous Risks

Total: 2
1
1
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.