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Home Halo

Home Halo Franchising, LLC
https://www.homecarehubfranchising.com
1-800-779-3312
8400 E. Prentice Avenue, Suite 1500, Greenwood Village, Colorado 80111

How much does Home Halo cost?

Initial Investment Range

$92,900 to $311,650

Franchise Fee

$49,000 to $203,350

The franchise that we offer is for Home Halo, a non-medical at-home care business that provides seniors and veterans with daily living assistance and at-home care, and related services and products.

Enjoy our partial free risk analysis below

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Home Halo January 29, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

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

1

Franchisor Stability Risks

Start Here
Total: 10
2
2
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, Home Halo Franchising, LLC (Home Halo), explicitly warns that its financial condition calls its ability to provide support into question. Audited financials from 2024 confirm this, showing very low capitalization ($29,513 in equity) and no history of franchise sales revenue. The company's financial stability appears to depend on future franchise sales rather than established operations, which poses a significant risk to you as a franchisee relying on their long-term support.

Potential Mitigations

  • Your accountant must conduct a thorough analysis of the audited financial statements and the accompanying notes to assess the company's viability.
  • It is advisable to discuss the franchisor's capitalization and plans for funding ongoing support with your financial advisor.
  • Legal counsel should review any state-mandated financial assurances, like bonds or escrow accounts, that may be required due to the weak financial position.
Citations: Item 21, Exhibit D, Special Risks to Consider About This Franchise

High Franchisee Turnover

Low Risk

Explanation

This specific risk was not identified in the FDD Package. High franchisee turnover is a critical indicator of systemic problems. Since Home Halo has not had any franchisees, there is no turnover data to analyze. The absence of this data is due to the system's newness, not necessarily a sign of stability.

Potential Mitigations

  • A business advisor can help you monitor system health and franchisee satisfaction if you proceed with this new system.
  • Your attorney should advise on negotiating stronger protections in the franchise agreement given the lack of historical data.
  • In future years, your accountant should help you review Item 20 tables annually to watch for signs of trouble.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

The risk of rapid, unsupportable growth was not identified. The FDD shows the system is new, with only two company-owned outlets and no franchised outlets opened to date. The primary risk is not that growth is too fast, but that the franchisor lacks the experience and financial resources to manage any future growth effectively.

Potential Mitigations

  • It is prudent to have your business advisor evaluate the franchisor's plans for scaling its support staff and infrastructure if they begin selling franchises.
  • Your accountant should review financial statements to assess if Home Halo has the resources to support growth.
  • Legal counsel can help you understand the support obligations the franchisor commits to in the Franchise Agreement.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

Home Halo is an unproven franchise system, a fact explicitly disclosed as a 'Special Risk.' The franchisor was formed in March 2024 and began offering franchises in April 2024. As of the FDD issuance date, there are no franchised outlets in operation. Investing in a new system like this carries a higher risk because the business model, support systems, and brand recognition are not yet established or validated by a successful franchisee network.

Potential Mitigations

  • Engaging a business advisor to perform extensive due diligence on the viability of the business model and the management team's experience is critical.
  • Your accountant should help you create conservative financial projections, as there is no franchisee performance data available.
  • An experienced franchise attorney should be consulted to negotiate more franchisee-favorable terms to help offset the higher risk.
Citations: Item 1, Item 2, Item 20, Special Risks to Consider About This Franchise

Possible Fad Business

Low Risk

Explanation

The risk that the business is a short-term fad was not identified. The non-medical at-home care industry for seniors and veterans is an established market with long-term demographic trends supporting sustained demand. However, a franchisee's success depends on the franchisor's specific business model and execution, which is unproven in this case.

Potential Mitigations

  • A discussion with your business advisor can help you assess the long-term viability of this specific business model within the broader home care industry.
  • Researching local market competition and demand for senior care services is a recommended step.
  • Engage with your financial advisor to evaluate the sustainability of the revenue model presented in the FDD.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

Home Halo's management team has limited experience managing a franchise system. While the CEO, Daniel Deak, has prior experience with another home care franchise, the franchisor entity itself is new and has no track record of supporting a network of franchisees. This lack of system-level experience could affect the quality of support, training, and strategic guidance you receive, which increases your operational risk.

Potential Mitigations

  • A thorough due diligence investigation of the management team's specific franchising experience should be conducted with your business advisor.
  • You should carefully evaluate the comprehensiveness and quality of the training program outlined in Item 11.
  • Your attorney can help clarify the specific, enforceable support obligations the franchisor commits to in the Franchise Agreement.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This specific risk was not identified in the FDD Package. Item 1 does not indicate that the franchisor is owned by a private equity firm. This is important because PE ownership can sometimes lead to a focus on short-term profits over the long-term health of the franchise system.

Potential Mitigations

  • During your due diligence, asking the franchisor about their long-term ownership structure and goals is a prudent step.
  • Your attorney can help you understand the 'Assignment' clause in the Franchise Agreement, which governs what happens if the franchisor is sold.
  • Working with a business advisor to research the franchisor's ownership is recommended for any franchise opportunity.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

This risk was not identified, as Home Halo does disclose its affiliates. However, a related risk exists: the franchisor entity is a newly organized, thinly capitalized subsidiary of a network of affiliated companies. The FDD does not include financial statements for these parent or affiliate entities, which appear to be the source of all operational experience and current revenue, making a full assessment of the entire enterprise's financial health difficult.

Potential Mitigations

  • An accountant should be engaged to analyze the provided financials and assess the risks associated with a thinly capitalized franchisor.
  • Your attorney should clarify the legal and financial relationships between Home Halo and its various affiliates.
  • Consider asking the franchisor for financial statements of the parent or affiliate entities that guarantee performance, with guidance from your attorney.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. Home Halo discloses in Item 1 that it does not have any predecessors. This means the company was not formed from the assets of a prior company operating the same system, so there is no hidden history of litigation, bankruptcy, or franchisee failure to investigate from a predecessor entity.

Potential Mitigations

  • It is always good practice to have your attorney confirm the corporate history stated in Item 1.
  • A business advisor can help you understand the implications of investing in a new system with no predecessor history.
  • Confirming with your accountant that the financial statements reflect a new entity is a prudent verification step.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This specific risk was not identified in the FDD Package. Item 3 discloses that neither the franchisor nor its management have been party to any material litigation. The absence of litigation is positive, but as a new franchisor with no franchisees, there has been limited opportunity for disputes to arise.

Potential Mitigations

  • It is advisable to ask your attorney to perform an independent search for litigation involving the franchisor or its principals as a final check.
  • Your business advisor can help you assess this factor in the context of the franchisor being a new entity.
  • Maintaining open communication with the franchisor can help prevent future disputes.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
1
9

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
4
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

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4

Legal & Contract Risks

Total: 16
7
3
6

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
4
0
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
3
0
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
5
5
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.

9

Term & Exit Risks

Total: 18
9
6
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.

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.