Are Senior Care Franchises Worth It for Investors?

Are Senior Care Franchises Worth It for Investors?

July 12, 2022 By Rob Cantrell
Categories: Blog

When you buy a senior care franchise, you’re making a big commitment. Purchasing a franchise is not only a major financial decision — it’s a choice about how you’ll spend the next five, ten, or twenty years of your career.

At Senior Helpers®, we know that strong revenue potential, affordable costs, and a growing industry make senior care franchises an attractive opportunity for many investors. As exciting as this opportunity may be, we want you to be confident that you’re making the right decision with your money, your time, and your career.

Are senior care franchises worth this level of investment? With more than 20 years of experience in franchising, we’re confident the answer is a resounding “yes.” That answer is echoed by leading experts, including publications like Franchise Business Review, which ranks senior care as one of the best sectors for franchise buyers.

In this post, we’ll walk you through what makes senior care franchises a smart investment, including:

  • Revenue and profit potential for a senior care franchise.
  • How a franchise can build long-term equity.
  • Growth projections for the home care industry.
  • Investment costs compared to other franchises.
  • Personal rewards of owning a senior care agency.

What Makes a Senior Care Franchise a Smart Investment?

Today, senior care routinely ranks as one of the top industries for franchise buyers.

Thanks to a combination of impressive earnings, a growing industry, and affordable upfront costs, senior care franchises come with the potential for significant ROI. They also provide franchise owners with the opportunity to do meaningful work and make a difference in the community.

Below, we’ll examine how each of these factors combine to make senior care one of the strongest investments in franchising.

1. Revenue & Profits

Senior care franchises are one of the most profitable types of franchise businesses. In a 2021 report, Franchise Business Review (FBR) named senior care the most profitable type of franchise.

As a franchise owner in the senior care sector, you can also generate positive cash flow in a relatively short amount of time. Below is a sample of data on Senior Helpers franchise revenues in 2021:

  • In 2021, the average annual gross revenue for franchises that had been open for 36 to 47 months was $901,001.
  • In 2021, the average annual gross revenue for franchises that had been open for 48 to 59 months was $1,137,732.
  • In 2021, the average annual gross revenue for franchises that had been open for more than 60 months was $1,229,889.

Note that these numbers are based on self-reported data from franchise owners, and they do not include franchises that were in operation for less than 12 months between January 1 and December 31, 2021. Additional details can be found in Item 19 of our Franchise Disclosure Document.

For additional information on Senior Helpers franchise revenues, refer to our 2022 Franchise Disclosure Document.

2. Equity Potential

Starting a franchise offers more than a simple source of revenue for investors. By building a successful business, you’re developing an asset with substantial equity.

Building equity with a senior care franchise can offer a path to financial independence. The average cost of a home care franchise with Senior Helpers is only $147,800. In developing a successful franchise, you have the chance to translate that investment into a much larger return.

As our CEO, Peter Ross, explains

One of the benefits of starting a franchise is you create successful entrepreneurs. They own their own business. We’ve had franchisees sell their business for seven figures. It’s an asset they’re building — it’s the best stock plan in the world.

3. Growing Market

The growth of America’s senior care industry makes it a highly attractive sector for franchise buyers.

As the Baby Boomer generation ages, demand for home care services is growing. This growth is so rapid that the American home care market is projected to grow from $90.1 billion in 2021 to $146.6 billion by 2028.

This growth is driven by two important factors. First, roughly half of U.S. Baby Boomers will be reaching retirement age in the next decade. At the same time, the other half of the Baby Boomer generation will be reaching 75 years of age or older, the point when demand for senior care rises dramatically.

What’s more, in-home care care is one of the most resilient and recession-resistant sectors of the U.S. economy. This makes a senior care franchise an ideal fit for investors looking 10 to 20 years down the road.

4. Affordable Costs

Unlike many other franchises, a senior care agency comes with modest upfront costs and a low barrier to entry.

At Senior Helpers, our franchise fee is only $55,000. The upfront costs for a single home care franchise unit range from from $125,800 to $169,800, including the franchise fee. On average, a new franchise owner will invest approximately $147,800 in their franchise.

This represents a substantially lower cost than many other franchise businesses. For comparison, the upfront investment for a franchise can exceed $1,500,000 if you’re opening a restaurant, retail store, or fitness center. With an elder care services franchise, you can start your own business for a tenth of that amount.

5. Personal Rewards

Owning a senior care franchise offers more than simply a chance at financial independence. It’s also an opportunity to make a difference in people’s lives.

According to the AARP, roughly 9 in 10 seniors wish to age in place. But for many elderly adults, aging in place is only possible with outside help. As the owner of a home care agency, you’ll make it possible for seniors to continue living in the comfort of their own homes. This allows older adults to age in the space where they feel happiest and most secure.

In addition to helping older adults, you’ll also be helping their families. Caring for a spouse or parent can be remarkably difficult — to the point where “caregiver burnout” is now a widely recognized condition. With a senior care agency, you can be a lifeline for family caregivers, offering the support they desperately need.

If you’re looking for a business that allows you to make a positive impact in your community, there are few opportunities more rewarding than a senior care franchise!

Learn More About Senior Helpers Franchise Opportunities

Looking for the perfect franchise to start your own senior care business? With a Senior Helpers franchise, you can build a senior care agency with a proven business model, plus the support of a nationally trusted home care brand!

With a Senior Helpers franchise, you’ll benefit from:

  • One of the most affordable franchise offerings in the senior care sector
  • Low ongoing royalties and fees for your franchise
  • Over 110 hours of training, plus extensive one-on-one support for new owners
  • Access to exclusive programs, like LIFE™ Profile and Senior Gems®
  • A customized “Off to the Races” marketing and lead generation plan
  • Local referrals for clients and caregivers
  • A franchise system that’s helped 300+ franchise owners find success in senior care!

Senior Helpers has hundreds of franchise territories available across the U.S. Our available territories include some of the largest metro markets in the nation, and include affluent areas with aging populations. Simply contact us to learn about franchises for sale in your area!

Want to learn more about senior care franchise opportunities with Senior Helpers? Contact us today to speak with a member of our franchise development team