Keep Safe Care shifts franchise strategy to multi-unit development

Keep Safe Care said Sept. 18 it will stop focusing on single-unit franchises and instead pursue about 10 to 20 multi-unit territory deals in U.S. markets, mainly in the South, Southeast and Southwest. The company says the move is meant to support faster growth, higher caregiver pay and stronger unit economics.

Why it matters: - Keep Safe Care is narrowing its franchise model to a smaller set of larger operators. - The shift could change how the company scales, with territory deals intended to support more locations, more billable hours and higher long-term returns. - The company is positioning the move as a way to pair caregiver pay increases with improved margins.

What happened: - Keep Safe Care Corporation said Sept. 18 it will move away from primarily awarding single-unit franchises. - The company will instead focus on multi-unit territory development opportunities in selected U.S. markets. - Keep Safe Care expects to offer about 10 to 20 of these opportunities. - The targeted markets are primarily in the South, Southeast and Southwest. - Availability depends on market conditions, state franchise laws and FTC requirements.

The details: - CEO and President Jeffrey Fry said the company’s low-cost Ultra-Lite Franchise model made single-unit sales less of a focus. - Keep Safe Care said its Private-Duty-in-a-Box operating platform helped validate the new strategy. - The platform combines recruitment, scheduling, payroll, communication, compliance and operational support. - The company also uses what it calls the 2/3 Rule, which pays caregivers at least two-thirds of the client’s billable rate. - Keep Safe Care said its unit-level model can generate about $7.50 to $8.25 in organizational profit per billable hour. - The company said a territory can sustain 6 to 8 agencies for the cost of one franchise compared with competitors. - Keep Safe Care plans to keep developing company-owned locations through its corporate operating division. - Some corporate operations will be joint ventures in regulated franchise states. - The company said it evaluates territories by total service capacity, not just the number of agency locations. - Keep Safe Care estimates its platform can deliver four to five times the capacity of a traditional standalone private-duty agency with similar administrative staffing. - The company said a conventional agency with about $1.5 million in annual revenue may require a similar administrative structure to a Keep Safe Care operation generating about $4 million to $5 million in annual revenue. - Depending on the metropolitan statistical area, total investment requirements may range from about $250,000 million to $1 million or more. - Management projections suggest qualified multi-unit operators may see a three- to five-times return on invested capital over three to five years. - The company said its approach could raise caregivers’ standard wages by 30% to 50% and cut operating costs by 40% to 55% versus traditional private-duty franchise models. - Additional information is available at the company’s licensing site. - The company also provided contact options at license@keepsafecare.com and (844) 492-2273.

Between the lines: - The pivot suggests Keep Safe Care is favoring fewer, larger franchise relationships over broader single-unit distribution. - The strategy also leans on a capacity-based sales pitch, which may appeal to investors looking for market control rather than one-location ownership. - Several of the company’s growth and return claims are management estimates, not guarantees.

What's next: - Keep Safe Care plans to market the multi-unit development opportunities as markets become available. - The company will continue building corporate-owned locations to refine the model and set operating benchmarks. - Those corporate units are also expected to support future franchise owners. - Franchise offerings remain subject to disclosure and registration requirements.

The bottom line: - Keep Safe Care is betting that a smaller pool of well-capitalized multi-unit operators will scale its home care model faster and more efficiently than single-unit franchisees.