Why Franchise Home Care?

Why Franchise Home Care?

With the ageing populations on Western countries increasing yearly, there has never been a better time to franchise in this booming sector, says Ed Texeira

Home care franchises are doing just fine, thank you, and the facts speak for themselves. Franchise market research firm, Franchise Grade reports that since 2010 home care franchises have grown by 62% and average franchisee turnover has gone from 9.6% to 7.31%.

In addition, in 2016, 60% of franchises did a Financial Performance Representation under Item 19 and for 2017 the number increased to 74%. These results reflect arguably the most healthy and dynamic franchise category in all of franchising with little possibility of abating.

There are over 6.500 franchise locations and 91 home care and senior care franchise brands in the U.S.

Most of these franchise brands provide non-skilled or companion type private pay home care services. Some predict that more home care franchise brands will migrate to providing skilled nursing services.

Fast-growing industry

Over the past twenty years home care has been one of the fastest growing industries in the United States. This growth has been replicated in the franchise industry by home care franchises.

In 2011 one-third of the home care agencies were franchises, but in 2016 about half were, according to market research firm Home Care Pulse LLC. As the United States population continues to age, it’s predicted that health-care employment will continue to surpass other sectors of the U.S. economy.

In fact, health care has recently surpassed manufacturing and retail sector employment, becoming the largest source of jobs in the U.S. The cost saving benefits of home care is a major driver of growth and the more franchises that provide skilled nursing government reimbursed services the greater opportunity for growth.

Federal and state funding for health-care means that health-care employment is insulated from swings in the economy. As an example, health care employment increased during the Great Recession.

The Bureau of Labor Statistics, predicts that personal care and home-health aides will represent one in every 10 new jobs during the next 10 years.
As the population continues to age, the demand for home care services will continue to grow. For individuals seeking to own and operate a franchise for a reasonable investment, a home care franchise can be a good choice.

In the case of Senior Care, a franchisee can tap into a market that continues to grow and operate a business that is uncomplicated and straightforward. In addition, the demand for home care services has encouraged more entrepreneurs to launch home care franchise programs. 

Four types of home care

Home health care Services provided in the home by nurses, home health aides and companions. Payment for these services includes Medicare, Medicaid, Insurance and Private Pay. A limited number of franchises provide these services.

Senior care: Often referred to as private duty, companion care or unskilled home care involves basic services such as meal preparation, compliance with medication, assistance with housekeeping and companionship.

Most home care franchises provide senior care services which are usually paid for by private pay or in some cases special insurance.
Medical staffing Is the temporary staffing of health care personnel to hospitals, nursing homes and other healthcare providers.

Franchises may include medical staffing as part of other home care services or as a separate franchise operation. The number of medical staffing franchises is quite low.

Medical equipment Include both durable medical equipment such as patient ramps, specialized vans and wheel chairs and home medical equipment which are companies that provide supplies, oxygen breathing devices and other supplies for home care patients.

Why a home or senior care franchise might be right for you:

* Has a lower average royalty rate than other personal services franchise categories and the overall franchise industry.

* Operational simplicity

* Many franchises have software programs that aid franchisees to operate more efficiently

* Reasonable investment between $122,064 - $359,908

* Stable and growing market

* An opportunity for expansion into other services

International opportunities

In the mid-90’s, I completed master franchise agreements in several countries including the first home care master franchise in Japan. Since that time, many home care franchises including Right at Home, Home Instead, Interim and Bright Star, have been successful in exporting their home care franchise overseas.

Several U.S. home care franchises begin their international franchise program by franchising directly into a small country or a country close to their U.S. Operation, such as Canada or Cost Rica.

The prognosis for the home care franchise sector is excellent based upon aging populations throughout the industrialized countries and the cost saving benefits of home care services.


Ed Teixeira, is COO of Franchise Grade, LLC and a contributor to Forbes.com. Ed has spent over 35 years in the franchise industry, including 15 years in the franchised home healthcare sector. He served as a senior executive for a publicly traded home care franchisor as well as franchisee of a multi-million-dollar home care operation with six locations. He was also Chief Operating Officer of a franchised medical staffing company. During his tenure, Teixeira was directly responsible for executing international licensing agreements to include the first home healthcare franchise license in Japan and agreements in Spain, Indonesia and Brazil. He is the author of The Franchise Buyers Manual and Franchising From The Inside Out.


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