What you need to know about opening a Home Care Franchise


There are many questions that need to be answered when considering opening a home care franchise. Let our team of home care experts help you. It is important to understand all the requirements for opening a Home Care Franchise. There are many Home Care Franchises to choose from. One thing to know is what makes them different. The following information will provide a better understanding of Home Care Franchising and the alternative of using as well as why a Home Care Consultant may be an option.

Let’s explore the following questions about Home Care Franchising and the Home Care Business model itself.

1. Why should I choose a Home Care Franchise compared to opening an Independent Home Care Agency?

2. What is a Home Care Agency Membership network?

3. There are many factors to consider when it comes to who you choose or how you open your Home Care Franchise.

4. Should I choose a home care franchise, membership network or be an independent agency as the business model for my company?

What you should know about opening a FRANCHISED BUSINESS?
One of and soon could be the fastest growing business opportunities in the franchise industry is Home care franchising. Growth in the home care franchising sector has been staggering. According to a survey report completed in 2013, seventeen home care franchises were interviewed reporting a fifteen percent sales increase over a one year period. The seventeen franchise companies interviewed had a total of five thousand three hundred locations. This year’s report indicated that these same seventeen home care franchises now six thousand locations.

There are several reasons why there will be continuous growth in the home care franchising industry. The baby boomer generations propose unlimited opportunities for patient resources. In 2011 the baby boom generation began to turn sixty-five years of age. Today there are 40 million-plus Americans older than 65, and the number will surge to more than 88 million by 2050, according to the U.S. Census Bureau. Can you imagine that the number of seniors alone that will need personal care and companion care will more than double by the year 2030. An estimated seventy-two million. A survey released in August by the National Council on Aging shows that 90 percent of respondents 60 or older would prefer to stay in their home over living in an institution. Another very important reason is that besides the result and demand for services is cost for services. Home care services are less expensive than the costs associated with long-term facilities.

One thing is certain the size of the home care market is huge and will continue to grow., demand for home care services will continue to fuel the growth of the home care franchise industry.

Another area to consider is private duty home care services that can be provided by Home Care Franchises. Consider the finding of a study that was conducted by in 2013 by home care pulse. Their private duty benchmarking study reported that the number of private duty home care agencies has grown by at least 104% since 2007. It is estimated that there are between five thousand and seventeen thousand private duties agencies in the United States. The report goes on to indicate that sixty home care franchises have over six thousand franchises.

Home care franchising remains one of the top categories among franchise categories. During the past several years the franchise industry has experienced negative fallout. This was primarily due to U.S. recession and tight credit markets. In a study released by IHS global insight for the international franchise association’s education foundation the number of franchise units was forecast to grow 1.5 percent in 2012 after 3 years of a decline in growth. Home care franchises have continued strong growth. The top seventeen home care franchises have grown by 12.75 %.

What are the costs associated with buying a Home Care Franchise?
Franchises require a variety of fees in return for the right to use their name along with any other assistance that they provide. Franchise fees for Home Health Care Franchises range from approximately 30,000 to over 100,000. Other Fees that Home Care Franchises charge are include ongoing royalties and, depending on the particular Home Care Franchise, regular contributions to a national advertising fund. Another expense could be the Home Care Franchise may have building plans that are required. You then have to factor in other expenses such as rent and operation equipment.  Most Home Care Franchises require you use only what they have approved. These type of expenses are often not considered until after the franchise agreement is signed. Some example are Operational software. Patent scheduling and Accounting software (these software programs are leased on a monthly basis and the costs can be in the thousands), Insurance requirements.

Another factor to consider when opening a home care franchise is failure rate. Before entering into any business endeavor, it’s only natural to compare what options you have and what is the best opportunity you have for success. According to All Businesses.com, 30% of independent, non-franchised businesses fail within the first year of operation. This is mostly because of the lack of expertise and guidance needed to operate a successful Home Care Business. This is where an established Home Care consulting company can provide the guidance and assistance in all operational capacities to prevent this type of failure rate.

One thing is certain. Opening a Home Care Business or Home Care Franchise is complicated. It is highly recommended that you don’t do it on your own.

Money, Capital, and Investment Needed for Opening a Home Care Franchise
The initial startup costs for opening a home care agency are not expensive. However the big picture is not what most expect. Most consulting companies offer new agency stirrup programs. Some of these consulting startup programs are very good. What you must understand is that the fees that they charge which can be as low $10,000.00 are for their consulting fees. This does not take into consideration the cost associated with any fees or operational expenses. Although opening a Home Care Agency with a Home care consulting company is inexpensive comparatively to opening a Home Care Franchise, as in either case, you must be fully capitalized. Both models require an upfront investment. A franchise or membership network will require more of an investment upfront than opening a home care agency. This is mostly because a home care franchise requires one to purchase the franchise/membership rights and territory.  The rights typically run between $20,000 to $100,000.

Most have found that to be an Independent operator, meaning you have chosen to open your own home care agency, means you will be able to save front capital associated with a Home Care Franchise. In addition there will be savings by not having to pay ongoing royalties. Another benefit of being an independent operator comes by reducing immediate startup costs associated with opening a home care franchise. This has a direct effect on the independent operator’s monthly bottom line profitability.  The differences in startup cost can make the difference between ability or inability to start your company.  Call us for a detailed overview of this. 888-850-6932.

Who has control over your Home Care Franchise?
If you are an independent individual, the controls and restrictions placed on your Business operations by certain franchises might be a challenge for you. Home care Franchises believe in there model and enforce the way they want things done to protect their integrity. Restrictions might include signage and appearance, site location, goods and services offered, and even the size of the territory you can service. If you suspect these restrictions would become onerous, don’t make the mistake of buying into a home care franchise.

Can you manage a Home Care Franchise?
Take a look inside yourself. Do you have the confidence needed to open a home care business? Before you buy a home care franchise or open a home care business with a Home Care Consultant ask yourself if you are ready to make a commitment. This commitment is to do whatever it takes to successfully operate this business. How bad do you want it ?

Home Care Franchise vs Home Care Membership Networks
The franchise/membership network costs typically include the rights to use their name, a service territory, start-up training, operational manuals, management training, staff training manuals and some marketing materials.  A Membership Network is typically through a Home Care consulting company and basically requires one to an independent operator. An independent operator usually works with the home care consulting company. The Home care consulting company provides all operational materials completion of all state and federal licensing materials, support and training.

Service Territory
Franchises assign you an area of service. The downside to this is that you cannot services a patient outside of this service area. Most Home Care Franchises have a ten to twenty-mile service area requirement. An independent operator working with a home care consulting company that offers a membership group can service patients according to what their state license allows.

Do your due diligence and know the following:

  • Does the franchise exist in your area?
  • Can the Home Care Franchise sell other territories in the area you desire?
  • Will you be able to have multiple offices within your territory?
  • Can you expand to a second location or expand your territory? What costs are involved?

As an independent operator, the limits of your territory are based on what the state and your license in that state allows.

Length of the Contract Term
Home Care Franchises require franchisees to have a contract for franchise requirements, most have been described. The length varies it can be anywhere from three years to twenty years. Consider this. If it’s just 3 years, what happens if you choose not to renew? Will you be required to rename your business?  It’s it enough time to learn the ropes? However you will be limiting the ongoing royalties. Is the benefit to starting with them only to have to drop the name after you have built brand recognition.

Is the 10 year period beneficial over the long-term?  Some will allow renewal of the term, some won’t.  Please do your due diligence. An independent operator is not subjected to any these type of contracts.

Client Sources
No Franchises or Home care consulting companies supply patients resources for their clients. They can make suggestions and assist with credentialing for insurance company providers.

Brand Recognition
It is our belief that a home care agency creates its own brand awareness. An example of this is when most people think of hamburgers they think of the brand McDonald’s. When they think Coffee, the brand of Starbucks or Duncan Donuts come to mind. What comes to mind when some thinks home care agency? Again it is our opinion that whether you chose to open a home care franchise or an independent home care agency you will create your own brand awareness in your community

At the end of the day, the business model you choose should be the one that works for YOU.  I encourage you to thoroughly investigate the benefits and features of several home care franchises and Home Care Consulting companies offering independent agency models to find which one is your best fit.

Why choose a consultant to help you open your Home Care Business? Consider the benefits of working with 21st Century Health Care Consultants.

They will assist and provide you with everything you will need to Open Your Very Own Home Care or Home Health Care Agency with No Franchise Fees, Royalty Fees or Territory Restrictions.

When you start a home care business with 21st Century Health Care Consultants, you are your own boss. You are not renting a franchise. 21st Century Health Care Consultants has helped establish well over a thousand home care/home health care agencies. All have enjoyed the benefits of working with a business model fare better than any home care franchise company without the ongoing fees and territory restrictions.

Why settle for a so-called “membership company” or small teams of 2 or 3 home care consultants, when you can work with the largest team of home care consultants in the industry? We have worked with home care agency start-ups in every state and guarantee our home care business model process.

Join Our Network of over 1000 Leaders in the Home Health/ Personal Care and Companion Care Industry.

21st Century Care Providers have been in business for more than 20 years and has assisted well over 2 thousand home care agency startups. In 2013 alone, 21st Century Care Providers helped more than 200 clients start a home care business. We are proud to employ a team of 20 full-time employees, all with a specific field of expertise. That is more than most home care franchise companies and far more than any other home care consultant you will find. We have 5 Masters Prepared Registered Nurses on staff to answer any clinical or administrative question you have throughout the entire home care agency startup process. Among these Registered Nurses is our CEO, Rosina McFadden. Not only is Rosina a former Senior CHAP Accreditation Site Surveyor of 15 years, Rosina pioneered New York’s Long Term Home Care Program which has become the model for Home Care as we know it today. You will not find a home care consultant with as many clients, references or full-time employees as 21st Century Care Providers.

It is important that agencies pay close attention to what is being offered to agencies by Home Care Franchise companies given the high cost and ongoing royalty fees associated with a Home Care Franchise

Home Care Franchise

Unlike Franchises, our program features: No Franchise Fees, No Royalty Charges, No Territory Restrictions, The completion of all State licensing applications, a CHAP or ACHC Accreditation, Life time training Program, Intranet portal that includes thirty educational training videos, Monthly Webinars, Marketing, Branding and business development materials.

For more information please contact us