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ActiKare In-Home Care Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What Are the Initial Investment Requirements for an ActiKare In-Home Care Franchise?
To open an ActiKare In-Home Care franchise, you will need an initial investment ranging from $32,530 to $57,550. This includes a franchise fee of $19,750. Additionally, you should be prepared for ongoing costs, such as a royalty fee of 5% to 3% and a marketing fee of 2%. Ensuring you have a net worth between $150,000 and $300,000 is essential to meet the franchise's financial prerequisites.
What Is the Average Revenue Potential for an ActiKare Franchisee?
ActiKare franchisees can expect significant revenue potential, with an average annual revenue per unit reported at $734,569. The median annual revenue stands at $627,344, while the highest revenue recorded is an impressive $2,584,259. This variability indicates that with effective management and strategic marketing, franchisees can achieve substantial financial success in the in-home care sector.
How Quickly Can You Expect to Break Even with an ActiKare Franchise?
Franchisees can anticipate a breakeven time of approximately 12 months after opening their ActiKare franchise. This relatively quick return on investment is appealing for many entrepreneurs. Furthermore, the investment payback period is around 9 months, allowing franchisees to recoup their initial costs and start generating profits sooner than in many other franchise models.
What Are the Ongoing Operational Costs for an ActiKare Franchise?
Operating an ActiKare In-Home Care franchise involves various ongoing expenses. Annual costs include $1,560 for scheduling software, $600 for business communications, and $18,000 for initial launch advertising. Overall, the total estimated annual running expenses amount to about $28,060. Understanding these costs is crucial for effective financial planning and ensuring sustainable profitability in your franchise operations.
ActiKare In-Home Care Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
ActiKare In-Home Care Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 139 | 138 | 141 |
| Net Change YoY | -1 | 3 | |
| Franchised Units | 139 | 138 | 141 |
| Net Change YoY | -1 | 3 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The ActiKare In-Home Care franchise offers a low initial investment range of $32,530 to $57,550, making it accessible for aspiring entrepreneurs. The initial franchise fee is $19,750, with ongoing royalty fees set between 5% and 3% of gross sales. Additionally, a marketing fee of 2% is required, ensuring franchisees benefit from collective advertising efforts.
Financial Performance
Franchisees can expect average annual revenue of approximately $734,569 per unit, with a median revenue of $627,344. The revenue range is broad, with the lowest annual revenue reported at $41,812 and the highest at $2,584,259. This variability highlights the potential for significant earnings in the in-home care sector.
Breakeven and Payback
ActiKare franchisees typically achieve breakeven within 12 months of operation, reflecting a solid business model and demand for in-home care services. Investment payback is estimated at just 9 months, offering a relatively quick return on investment compared to many other franchise opportunities.
Franchise Growth
The ActiKare franchise has shown steady growth, with 139 franchised units in 2020, slightly decreasing to 138 in 2021, and then increasing to 141 in 2022. This stability indicates a resilient business model and a supportive franchise community that fosters growth for new and existing franchisees.
Operational Expenses
Franchisees should anticipate average annual operational expenses totaling around $28,060. Key expenses include scheduling software ($1,560), business communication services ($600), and initial launch advertising ($18,000). Understanding these costs is crucial for effective financial planning and management.
Corporate Structure
ActiKare operates as a franchise system with no corporate-owned units, allowing franchisees to fully own and manage their locations. This structure supports franchisees in building their own businesses while benefiting from the established brand and operational support provided by ActiKare.
Frequently Asked Questions
The initial investment for an ActiKare franchise ranges from $32,530 to $57,550, which includes a franchise fee of $19,750.