Senior Care: Huge Franchise Opportunity
Booming industry that will only grow
Brian Beers
September 26, 2023
We invested in a non-medical, in-home senior care franchise earlier this year. Here’s what I like:
Booming industry that will only grow
Opportunity to rollup legacy owners
Low overhead & scalable
Industry
There is a huge aging population in America.
The number of seniors 85+ years old will double from 7M to 15M by 2040.
People live longer and want to stay home as long as possible. They don't want to move into a nursing home. This trend creates massive demand for in-home senior care.
Most franchises specialize in non-medical personal care, which includes:
Companionship Care - authentic, consistent human company
Homemaking - cleaning, laundry, watering plants, sorting mail
Personal Care - bathing, meal prep, cooking, mobility
Live-In Care - around-the-clock care to enhance total quality of life
Alzheimer & Dementia Care - early state, mid-state, late-stage
Some franchisees will expand into medical care, but it's the simpler business model to focus on non-medical needs.
A client may start with just a few hours per week but eventually add more as the senior gets older and needs more help.
Business Model
We charge private-pay clients $28 to $34 per hour. We hire caregivers at $14 to $18 per hour. These rates will depend on your market.
This is a volume business. There are franchisees throughout multiple brands doing $2M, $10M, $15M, even $40M sales per year.
Other costs include office staff, rent, royalty, advertising, recruiting, insurance & all the other standard business expenses.
This model is very scalable once you get the systems down for client acquisition, hiring, & managing caregivers.
The biggest challenge & bottleneck every franchisee faces is hiring caregivers. Caregivers have a tough job and the market for them is very competitive.
Start-Up Process
Most non-medical senior care franchises can be started for $90-150k.
This includes the franchisee fee, grand opening marketing, rent deposits, software, training costs, & working capital. Item 7 of the FDD provides a full breakdown of estimated costs.
All of them require a small physical office space in your territory. You'll utilize this space to interview & onboard caregivers.
You'll get a protected territory to provide services. Brands vary in how they define the territories. They give you an estimated number of seniors or by total population.
All franchisors offer discounts on the franchise fee if purchasing multiple territories up-front.
Ideal Franchisee
Every franchisor requires the owner to be actively involved in running the business.
There are only two roles to start. One of them will be you:
Marketing - build relationships with hospitals, nursing homes, etc.
Office - hiring, scheduling caregivers, payroll, & billing
Owners must be driven & compassionate about helping people.
(In my deal we are minority financial/advisory partners. The franchisee is full-time in the business & absolutely crushing it. A podcast interview with him coming in a few weeks)
Franchisors
There are 50+ franchisors in the non-medical in-home health space.
Many have similar business models, start-up costs & earnings potential.
The factors to consider:
Territory Availability
Training & Support
Leadership Team
Franchisee Satisfaction
Older brands have legacy franchisees retiring over the next few years. Franchisees want to sell to other franchisees. Our strategy was to get our foot in the door and then work on the roll-up plan.
Learn More
Reply with your zip code & phone number if you want to see what's available in your market.
My team helps people become entrepreneurs through franchising. We help you find the best franchise based on your goals, budget, skills & location.
We provide you with tools, resources & education to give you confidence
Let's Connect
Check out my weekly podcast Business with Beers
Cheers!
Brian