Home Instead is a franchisor providing in-home care services for seniors and other individuals. Considered one of the world’s leading care providers, their mission statement says they believe everybody should be able to live independently at home, regardless of their age.
Founded in 1994 and offering franchise opportunities since 1995, Home Instead is headquartered in Omaha, Nebraska. The business provides home care services such as companionship, and personal and specialized services, including hospice and Alzheimer’s care for older adults. They operate more than 1,200 franchised locations across 13 countries and are a frequent ‘top franchise’ award winner.
Home Instead at a glance:
Home Instead say they are seeking franchisees who are driven by a passion to improve the quality of life for seniors and who put their compassion for others first. If this sounds like you and you can meet the average $116,000 start-up cost as well as demonstrate a set of qualities and skills that include strong salesmanship, a desire to work with aging adults, full-time commitment, and good leadership skills, you could start a Home Instead franchise. The company demands either the franchisee or their designated manager must take the franchise training and be involved in the day-to-day running of the business – which means this opportunity could be suitable for passive investment.
Starting a Home Instead franchise can cost $98,000 up to $125,000 – making this a low to moderate investment. Be aware that although this opportunity delivers services directly to customers in their home, you will still need an office to manage the necessary business administration. You could use your home for this task, or you may need to lease commercial premises.,
The initial franchise fee is $54,000. Military veterans can apply for a waiver that eliminates the initial franchise fee for two veterans per year.
After opening, you are required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $54,000 | $54,000 |
| Real estate and expenses – start-up | $1,500 | $3,000 |
| Operating software – three months | $0 | $500 |
| Travel and living expenses while training | $500 | $1,000 |
| Equipment | $3,000 | $5,000 |
| Signs | $1,000 | $5,000 |
| Miscellaneous operating costs including insurance deposit | $7,000 | $10,000 |
| Inventory | $500 | $1,000 |
| Advertising – three months | $1,000 | $5,000 |
| Other costs – six months | $30,000 | $40,000 |
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Yes, although revenues can fluctuate significantly. A recent survey found that annual revenues ranged from $9million all the way down to $100,000 per year. Average annual revenues across all Canadian locations were $2,229,000. Typical industry net profits of 10% on this level of income would be $222,000, which is very good and well above the average Canadian franchise owner income (all Canadian franchises) of $60,000 per year.
Low. The failure rate for a Home Instead franchise is 1% in the first year, rising to 3% by year three.
Excellent revenue and profit potential, low initial set-up costs, and the possibility of running your business as a passive investment make Home Instead a solid franchise opportunity. The only concern is the large variation in business revenues from one Canadian franchise to another. Investors should ask Home Instead why this is and what is required and how long it takes to reach the average +$2million annual income.
Franchisees are granted the right to operate a franchised business within a defined geographic area with an estimated minimum population of 10,000 people aged 65 years and older. The protected area is defined as a municipality, portion of a municipality, county or metropolitan statistical area or defined by a map. Home Instead promises not to grant another franchisee the right to open and operate a Home Instead Senior Care business or operate a company-owned Home Instead Senior Care business within the protected area. Franchisees are prohibited from soliciting or providing services to customers outside their protected area except as authorized.
Home Instead support for franchisees includes:
It begins with an application. Start the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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