Home Instead

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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.

Home Instead business details

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:

  • US stores: Approximately 600
  • Required Investor net worth: not stated
  • Required investor liquid cash: not stated
  • Min. investment: $98,000
  • Max. investment: $125,000
  • Standard franchise term: 5 years

Can I start a Home Instead franchise?

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.

How much does a Home Instead franchise cost?

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:

  • Royalty fee: 7% to 4% of gross revenues – the rate falls as your business grows
  • Marketing fund: 2% of monthly gross revenues
  • Technology fee: $500 per month
  • Training fees: Extra person – $1,000 to $1,500 per person. $500 a day plus expenses for training at your office
  • Transfer fee: $22,000
  • Additional owner fee: $5,000
  • Renewal fee: $5,000

Estimated key costs to open a Home Instead franchise:

Key Costs GuideLowHigh
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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Are Home Instead franchises profitable?

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 US 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 US franchise owner income (all US franchises) of $60,000 per year. 

What is the failure rate for a Home Instead franchise?

Low. The failure rate for a Home Instead franchise is 1% in the first year, rising to 3% by year three.

Why should you start a Home Instead franchise?

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 US 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.

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What are the franchise territory policies for Home Instead?

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.

What franchise resources does Home Instead offer?

Home Instead support for franchisees includes:

  • Training: Franchisees or their designated manager must successfully complete the Home Instead initial training. Training may be conducted in Omaha, Nebraska or at another location chosen by the company. During the initial training program, Home Instead will arrange and pay for up to five nights of hotel accommodation for the franchisee and the other person attending the initial training program. Home Instead also provides specialized support, guidance and resources for new franchisees during the first 10 weeks through regular telephone calls, video conferences and email. 
  • Marketing support: Home Instead provides promotional and other marketing support for their franchisees.
  • Third-party financing: Home Instead provides no financial support for investors seeking franchise funding. Instead, you may be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

What is the process for starting a Home Instead franchise?

It begins with an application. Start the process here.

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Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new senior care business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://sharpsheets.io/blog/home-instead-franchise-sales-costs-profits/

Home Instead franchise application: https://franchises.homeinstead.com/home-care-franchising-process/

Home Instead: https://franchises.homeinstead.com/

Failure rate: https://www.vettedbiz.com/franchises/home-instead/

Average set-up cost: https://sharpsheets.io/blog/home-instead-franchise-sales-costs-profits/

Set-up costs: https://www.franchisedirect.com/directory/homeinstead/ufoc/112/

Awards: https://franchises.homeinstead.com/home-instead-franchise-business/awards-testimonials/

Veterans: https://franchises.homeinstead.com/home-instead-franchise-business/veterans-franchise-opportunities/

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