|
Home Care Assistance 1-866-4-LiveIn Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What Are the Initial Investment Requirements for a Home Care Assistance Franchise?
To open a Home Care Assistance franchise, you will need to prepare for an initial investment ranging from $86,000 to $146,500. This includes a franchise fee of $55,000. Additionally, you should be aware of ongoing costs such as a 5% royalty fee on revenue and a 1% marketing fee. Prospective franchisees must also demonstrate a net worth between $100,000 and $500,000 to qualify for this opportunity.
What Is the Financial Performance of a Home Care Assistance Franchise?
Home Care Assistance franchises have shown promising financial performance, with an average annual revenue of approximately $1,647,540 per unit. The median revenue stands at $1,259,153, while the range of annual revenues varies widely from $28,387 to $7,290,584. Franchisees can expect to break even within about 18 months and achieve a payback on their investment in approximately 16 months, making it a potentially lucrative opportunity.
What Are the Average Operating Expenses for a Home Care Assistance Franchise?
Operating expenses for a Home Care Assistance franchise typically total around $937,597 annually, which accounts for about 56.86% of revenue. Key expenses include salaries and wages for office staff, which represent a significant portion of costs, along with expenses for marketing, professional services, and general administrative costs. Understanding these expenses is crucial for managing profitability and ensuring the financial health of your franchise.
How Many Units Does Home Care Assistance Have, and What Does That Mean for Franchisees?
As of 2019, Home Care Assistance operates a total of 148 units, with 96 being franchised and 52 corporate-owned. This growth trajectory indicates a stable brand presence in the market. The number of franchised units has seen slight fluctuations over the years, which can impact support and resource allocation for franchisees. A well-established network can provide valuable insights and shared experiences, enhancing the potential for success in your franchise journey.
Home Care Assistance 1-866-4-LiveIn 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:
Home Care Assistance 1-866-4-LiveIn Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 145 | 147 | 148 |
| Net Change YoY | 2 | 1 | |
| Franchised Units | 102 | 101 | 96 |
| Net Change YoY | -1 | -5 | |
| Corporate Units | 43 | 46 | 52 |
| Net Change YoY | 3 | 6 |
Franchise Overview
Home Care Assistance is a leading provider of in-home care services, dedicated to enhancing the quality of life for seniors and individuals with disabilities. With a focus on compassionate, personalized care, the franchise aims to support families by delivering services that promote independence and dignity. Established in 2004, the brand has rapidly expanded, becoming a trusted name in the home care industry.
Investment Requirements
To become a Home Care Assistance franchisee, the initial investment ranges from $86,000 to $146,500, which includes a franchise fee of $55,000. Prospective franchisees must demonstrate a net worth of $100,000 to $500,000 and have access to liquid capital within the same range. This financial framework ensures that franchisees are well-equipped to manage their business and achieve success.
Revenue Potential
Home Care Assistance franchises can expect significant revenue potential, with average annual revenue per unit reported at $1,647,540. The median annual revenue stands at $1,259,153, while some units have achieved revenues as high as $7,290,584. This promising financial outlook highlights the demand for quality home care services and the potential for franchisees to thrive in this growing market.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 1%. These ongoing fees contribute to the brand's national marketing efforts and support franchisee operations, ensuring that Home Care Assistance maintains its competitive edge in the home care sector.
Operational Support
Home Care Assistance provides comprehensive support to franchisees, including training programs, marketing resources, and operational guidance. Franchisees benefit from a proven business model and access to industry best practices, which are crucial for navigating the complexities of the home care market and optimizing performance.
Growth Opportunities
The home care industry is experiencing rapid growth, driven by an aging population and increasing demand for in-home care services. With a breakeven time of approximately 18 months and an investment payback period of around 16 months, franchisees can capitalize on this expanding market. Home Care Assistance offers a scalable business model that allows for multi-unit ownership, providing additional avenues for growth and revenue generation.
Frequently Asked Questions
The initial investment for a Home Care Assistance franchise ranges from $86,000 to $146,500, which includes a franchise fee of $55,000.