Home Care Franchise for Sale
One of the most difficult parts of aging is having to give up your home. According to one AARP survey, about 75% of adults over the age of 50 years want to stay in their homes as long as possible. However, many end up moving to nursing homes or retirement communities to receive the assistance, medical care, and community they need. With home care franchises, the older population can access care without leaving their homes.
A home care franchise is a type of senior services franchise that provides assistance to the elderly or other people who need special care in the comfort of their own homes. Some of these franchises are medical, offering populations who need home care help with medications or any injuries or illnesses they have. Other home care franchises are non-medical, instead offering help with running errands, cleaning around the house, and even socializing.
If you’re interested in opening a home care franchise of your own, then keep reading to learn:
- How profitable this type of franchise is
- How to open one
- Examples of this type of franchise to check out
Is a Home Care Business Profitable in the USA?
Yes, senior home care business profitability in the USA is high. In fact, the median revenue for the industry reached $2.02 million in 2021, and increased by $210K from 2019. What’s more, the average annual income for a senior care franchise owner is $155,132. With that said, to make a notable profit when you open one of these businesses, you have to:
- Put in the effort
- Open your business in an area with a significant need
- Follow the best practices that the franchisor gives you
There are several reasons why owners of home care franchises turn a profit so well. For one, this type of franchise typically doesn’t require you to have a physical location, so you can save money on startup and monthly costs. To put it into perspective, the average price for office space in the US is $8-$23 per square foot per month. If you had an office space of 750 square feet, for example, you’d end up spending anywhere from $6,000-$17,250 per month. With a home care franchise, you could use the thousands of dollars a month you save on office space and use it towards expanding your business.
Another reason that home care businesses are so profitable now is because the USA’s population is aging. As of 2021, almost 17% of people in the USA were 65 years of age or older. That number has increased each year for at least a decade now. As more of the population reaches retirement age, the need for home care services increases, especially considering that 27% of Americans aged 60 years and older continue to live independently compared to the 16% of seniors in 130 other countries. This growing elderly population wants to remain in their homes as long as possible, and with assistance from home care businesses, they can.
How to Start a Home Care Business in the US
To start a home care assistance franchise location of your own, you should follow a few key steps:
To truly understand the market you’re getting into, you need to look into everything that might affect the success of your business. For example, you should research:
- The size of the senior population in the area you want to open your business
- The number of competitors in your area
- The typical home care franchise cost in your area
- The franchises available for purchase
- The home care franchise profit margin in your area as well as among others in a particular franchise
Choose a Business Entity to Establish
Even if you franchise, it’s advisable to establish a business entity to protect yourself and your investment. A few of the types of business entity you could choose from include:
- Sole Proprietorship: You are the only person in charge of finances and running your business. You and your business are not separate legal entities, meaning you will be personally responsible for any debts your business accrues.
- Partnership: A group of two or more individuals shares the financial responsibility for the business. Each person also helps to run the business.
- Limited Liability Company (LLC): The business becomes its own legal entity so that any of the business’s debts or loans don’t affect members’ personal assets.
- C Corporation: Your company is taxed separately from its owners. It also offers limited liability to protect owners’ personal assets when the company runs into financial struggles.
Create a Business Plan
While not typically required for franchisees since the franchisor will provide you with one, it can be helpful to have your own when applying for loans or even applying to be a franchisee.
How Do You Write a Home Care Business Plan?
To write a home care business plan that appeals to franchises and lenders alike, you should start by providing an overview of your business. For example, include your name and the name of the people who you’ll work with. Give a description of each of your backgrounds. In these descriptions, make sure to explain what background you have in business or for caring for others. HMany home care franchises value helping others, so they’ll want to make sure that you’ll represent their business well. Plus, including relevant experience will show lenders that you have the knowledge to run a successful franchise location and repay your loan.
Your business plan should also provide research. Show both franchises and lenders what the market is like in your area and what competition you face. This information will also indicate to them how successful your business may be. Calculations can be includedYou can also include calculations in this section on what you expect to earn based on the home care market in your area.
Once you have signed an agreement with a franchise, you can also provide information about the franchise as a whole to lenders. For example, you can:
- Outline the financial history of the franchise
- Provide examples of the marketing materials that the franchise has given you
- Include the franchise’s overall business plan
Many lenders feel more comfortable supporting franchisees because the franchise has had success in the past.
Apply for a Franchise
You can find senior service franchises, whether you are interested in a home health care business for sale or a non-medical home care business for sale, at Franchise.com. If you find a good fit, sign the franchise agreement and the franchise disclosure document (FDD).
Acquire the Appropriate Licenses
Depending on the state you plan to open your franchise, you may need to obtain a license to own and operate it. Medical home care franchises typically require more licenses than non-medical home care ones. The parent franchise can provide you with more information on what licenses you need for your area.
What Licenses Do You Need to Start a Home Health Care Business?
The licenses you need to start a home health care business will vary from state to state. In fact, sSome states don’t require you to have any kind of license. Those states are:
If you start a medical home care franchise in a state different from the ones listed above, you will need a license that covers both non-medical care and nursing. Any medical staff you have must be licensed in the state in which you operate and must participate in the appropriate training. For non-medical home care franchises, on the other hand, you will only need a license for non-medical care.
The states that do require licenses mandate that businesses get inspections by a governing body before you’re considered “licensed.” After the initial inspection, you will need an inspection every 1-3 years to maintain your license. Depending on the state you’re in, you may also have to complete a Certificate of Need to prove that your services are needed in your area. These documents help governing bodies ensure that they aren’t overspending on the healthcare industry.
You can check the licensing process in your state here.
- Obtain funding. You may find investors willing to give you the money, or you can apply for a loan. Banks, credit unions, and the Small Business Administration (SBA) all offer loans that franchisees can use.
- Open your business. The franchisor will typically give you the training and marketing materials to get you up and running. Make sure to hire employees with the expertise and character needed to appeal to seniors and their families.
Now that you have a basic overview of how to open a home care franchise, let’s take a closer look at how to write a home care business plan.
How to Get Clients for a Non-Medical Home Care Business and for a Medical Home Care Business
While using the marketing materials that the franchisor gives you can be a great way to attract clients to your home care business, it shouldn’t be the only method you rely on to drive business. To bring clients in, you need to spread the word about your business. A few of the ways you can do that are:
- Hosting a grand opening
- Creating a digital marketing strategy
- Attending local events
- Promote positive reviews
Host a Grand Opening
A good place to start is by hosting a grand opening celebration. You can post on social media and send press releases to local media outlets to inform the community about it before you officially launch. Because you might not have a physical location, you may decide to hold your grand opening in an event center or a local park. Regardless of where your grand opening is held, be sure to include food and activities for those who attend. While this event is about spreading the word about your business, you don’t want your event to be strictly about selling your business to those who attend. Rather, show attendees a good time and interact with them on a personal level, and it will spark sales.
Create a Digital Marketing Strategy
Make sure to post information about your business online. You can write blogs, share social media posts, and host webinars to drive online traffic to your website or social media pages. Vary the types of content you create. For example, some might be sales-specific, some might be educational, and others may be strictly for fun. Also, make sure to post regularly to stay high in your potential customers’ searches. The stronger your online presence is, the more likely it is that someone will choose you for their home care needs.
Attend Local Events
Getting involved in your community can be a great way to show potential customers that you exist. You might, for example, go to or even sponsor non-profit events that your target audience might attend, like Alzheimer’s walks or caregiver seminars. Not only will these events give you a place to talk with potential clients and their families one-on-one, but they can also show those same people that you care for the community and are playing an active role in it.
Promote Positive Reviews
If you have customers who have been satisfied with the work you’ve done for them, ask them to leave a review on your website, Google page, or social media page. Oftentimes, hearing other customers’ stories can persuade prospective customers to choose your business over another one. If your customers don’t feel comfortable posting online, you may also encourage them to tell their friends and peers about their experiences. Even sharing more about your business with those they trust can attract clients to your services.
Running a home care franchise can be a great way to grow your profits and make a difference in the community. If you’re intrigued by the thought, then it’s time to start looking at which of these franchises are available in your area.
Discover Some of the Best Franchises for Seniors’ Home Care on Franchise.com
If you have a passion for helping others and want to open a home care franchise of your own, check out Franchise.com. You can use built in filters on our website to find a senior care franchise for sale in your area and within your price range.
To get you started on your search, check out the home care franchises listed below. They were listed among the top 50 franchises with the highest owner satisfaction ratings, according to a Franchise Business Review report:
- Home Instead: The Home Instead senior care franchise provides seniors with non-medical home care, placing the belief in dignity and respect for clients, colleagues, and care professionals at the center of it all.
- HomeWell Care Services: This franchise offers seniors and others confined to their homes companionship, housekeeping tasks, and personal care.
- Right at Home: This company is looking for franchisees who have found success in their current career but want to apply their skills more meaningfully—by helping the disabled and elderly.
- Visiting Angels: This franchise has operated for the past 20 years to set the standard for non-medical home care agencies across the United States.
SYNERGY HomeCare: This franchise provides non-medical home care to people of all ages to serve communities with compassion and empathy.