A franchise is a smart way to enter the senior care industry without the risks and hassles of starting from scratch. But like any business, you may have concerns about whether your investment will pay off.
According to Franchise Business Review, home care franchises ranked at the top of its latest annual survey of the 50 most profitable franchise opportunities. Upon further inspection of senior care franchise profitability, the FBR report finds the average income for a franchisee in the sector is $135,625 annually.
In order to set yourself up for solid financial success, you should know the top three factors that drive senior care franchise profitability.
Low Upfront Costs
There is a fairly low financial barrier to entry into the senior care franchise market. Aside from the franchise fee, you generally have relatively minimal startup costs.
Home care franchises can have a minimum initial investment requirement as small as $44,500 (like CareBuilders at Home) and go as high as $110,881. Liquid capital requirements start at $45,000 and go as high as $150,000.
These conditions are low — especially when compared to other franchise opportunities. For example, it costs $500,000 or more to start a restaurant concept. Yet 51.5 percent of food franchises earn profits of less than $50,000 a year, according to FBR.
On the topic of costs, note that senior care franchises have minimal equipment requirements and little inventory for owners to purchase and maintain.
Return on Investment
The home care franchise model offers a high return on investment. Combining that with the low upfront investment and nearly non-existent inventory costs means a home care franchise is a great opportunity. Run properly, a home care franchise can generate significant revenue. The size of the territories is also designed to support high-volume sales.
CareBuilders at Home offers the largest protected territories in the industry. The company offers territories built around 35,000+ seniors (65 and older). In addition to the age demographics, household income data is also evaluated in building the territories for the franchise owners.
There has never been a greater need for senior in-home care than today. More than 74 million baby boomers in the United States plan to age in place. This means one in every five people might need senior care services. This demand is expected to continue its growth trajectory for the next 20 years. As a result, the home care franchise model is extremely resilient.
It also gives you the ability to tap into an even broader market, such as care services for the disabled, injured, people recovering from surgery, and new moms. CareBuilders at Home already has services available for anyone who needs at-home care — not just seniors — giving you a leg up from the minute you launch.
Understanding the factors that influence senior care franchise profitability will only help when you team up with a leading home care franchise. CareBuilders at Home has franchise opportunities across the United States to allow you to achieve your dream of entrepreneurship.
Contact us at CareBuilders at Home to learn more about how you can earn a great living while doing good in the community.