Senior Care Franchise Profitability: What You Can Expect To Make
We won’t beat around the bush; people start businesses because they want to make money. There’s nothing wrong with that! Businesses provide products, services, and employment opportunities, to stimulate the economy.
If you’re someone who knows they want to start a business and you are considering a senior care franchise, you may be wondering about the profit potential. We break down what factors go into predicting senior care franchise profitability and what opportunities are available within the industry.
The Industry is Growing
When looking at profitability, it’s important to understand how the overall industry is doing. Is there an opportunity for you to make good money? Do projections show industry growth for years to come? Fortunately, the senior care industry is expected to see incredible growth over the next few years.
A recent report shows the senior care industry is growing globally. In 2021, the industry was worth an incredible $1,594.6 billion. Research indicates that the elderly care market is estimated to grow at a compound annual growth rate (CAGR) of 6.8%, capping at projected market size of $2,366.4 billion by 2028.
The U.S. especially has a large need for home care services. 10,000 baby boomers turn 65 every day. According to Forbes, 67 million Americans over the age of 60 are expected to need in-home care or are already in need. By the year 2050, it’s projected that 15 million seniors will need long-term care.
With the senior population substantially growing coupled with their overwhelming desire to age in place, those looking to start a senior care franchise will have the unique opportunity to grow alongside a booming market.
Low Overhead Costs
Due to much of the work being done in the homes of clients, you won’t need a large space to work from – therefore reducing your initial startup costs. Most senior care franchises also don’t require their owners to carry any type of inventory. Of course, with lower overhead costs, more of the money you make from your business goes directly to you.
When looking at home care franchise costs, it’s important to review Item 7 of the franchise disclosure document (FDD) for a full breakdown of the initial investment. For example, Always Best Care, one of the most trusted providers of home care in the nation, has an investment range of $74,725 to $125,400. This includes their franchise fee of $49,900. As a member of both the MinorityFran and VetFran programs, Always Best Care offers qualifying franchise candidates a discounted franchise fee.
Another strong benefit of the home care franchise industry is the number of different services that agencies can provide. Senior care is actually a subset of the overall home care industry that includes services for those with disabilities, veteran care, and other special services. This allows you to build multiple streams of revenue.
At Always Best Care, we pride ourselves on having a multi-tiered business model, which gives our franchise investors the opportunity to generate three streams of revenue. Our brand has a continuum of care, meaning we’re able to offer services at multiple life stages. From home care to assisted living referrals, our franchisees can provide exemplary long-term care for those who need it.
When determining senior care franchise profitability, it’s important to go with a brand that can give you the tools you need to succeed. In addition to providing non-medical in-home care, assisted living referrals and home health care services, we also have a strict territory policy. Designed to give franchise investors equal opportunity to grow their businesses, Always Best Care protects all channels of referrals.
Keep in mind that franchises cannot make any type of earnings claim; there is no guarantee of profitability. As you evaluate senior care franchise profitability among various franchises, you’ll also want to review each franchise’s Item 19 in the FDD. This section, also called “financial representations,” gives you a clear indication as to the overall financial health of the franchise brand.
Always Best Care is on the verge of incredible growth. Having started in 1996, the company has been franchising since 2006. With 225 territories sold across the country, there are plenty of opportunities within the U.S. and Canada. Be part of a franchise that positively impacts your community. Join Always Best Care.
To learn more about this franchise opportunity, download a free e-book today and one of the representatives will be in touch.