Homewatch Caregivers franchise

Hassle-free business loans to start your Homewatch Caregivers franchise.

Homewatch Caregivers is a leading provider of in-home care services with more than 200 offices employing over 4500 caregivers across the USA.

Homewatch Caregivers business details

Founded in 1980 and offering franchise opportunities since 1996, Homewatch Caregivers are headquartered in Columbia, Maryland. The company operates a network of franchised care offices that employ care workers, nurses and some medically trained professionals to provide companionship, personal care, nursing and other skilled services to seniors and those with disabilities in the comfort of their own home. Homewatch claim to be America’s premier in-home care provider. They currently have offices in 30 US states and seven other countries.

Homewatch Caregivers at a glance:

US stores: Approximately 225
Required Investor net worth: $350,000
Required investor liquid cash: $80,000
Min. investment: $92,000
Max. investment: $154,000
Standard franchise term: 10 years

Can I start a Homewatch Caregivers franchise?

You’ll need at least $80k in available cash and have a minimum net worth of $350k, but previous medical or healthcare experience is not essential to start this business. Instead, Homewatch says they are seeking franchisees who are civic-minded, community partners and who have experience in leading and managing an array of individuals. If this sounds like you and you can meet the financial requirements, a Homewatch franchise could be what you’re looking for. Be aware that you are required to play an active role in running the business. This opportunity may not be suitable for passive investment.

How much does a Homewatch Caregivers franchise cost?

Start-up costs for a Homewatch Caregivers franchise range from $92,000 to $154,000, which ranks as low. Although this business provides care workers to support customers in their own homes, or to work as temporary staff in care homes, you are still required to have an office to handle the administration. If you do not have an existing space that is suitable for this task, you will need to lease an office unit. This will increase your start-up and monthly expenses.

The initial franchise fee is $50,000. Military veterans may be eligible for a 30% discount off this cost.

After opening, you are required to pay an array of ongoing fees and charges. They include:

Royalty fee: 5% of gross revenues
Brand contribution fund: 2% of gross revenues
Local marketing fees: $2,000 per month or 3% of gross revenues, whichever is greater
Grand open marketing: $2,000 within three months of opening
Training fees: $1,000 per trainee
Renewal fee: $5,000
Transfer fee: $10,000
Change of owner fee: $500
Management fee: $500 per day plus franchisor’s costs and overhead
Step-in fee: $500 per day plus franchisor’s costs and overhead

Estimated key costs to open a Homewatch Caregivers franchise:

Key Costs Guide	Low	High
Franchise fee	$50,000	$50,000
Office lease and security deposits	$3,000	$8,000
Training expenses	$2,000	$5,000
Telecommunications system	$250	$500
Office furniture and fixtures	$1,000	$3,500
Insurance	$8,000	$18,000
Compliance tool kit	$1,500	$1,500
Licenses, permits, professional fees	$500	$8,000
Additional costs – first three months	$25,000	$55,000

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Are Homewatch Caregivers franchises profitable?

Yes. Homewatch Caregivers franchises average gross revenues of $632,000 per year. Profits in the care industry are typically modest at 10% to 15%. Based on these figures, average net profits per Homewatch franchise would be $63,000 to $93,000 per year – which ranks as moderate.

What is the failure rate for a Homewatch Caregivers franchise?

Moderate to high. The failure rate for a Homewatch Caregivers franchise is 12% in the first year, rising to 23% by year three.

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What are the franchise territory policies for Homewatch Caregivers?

Franchisees receive a protected territory during the term of their franchise agreement. Homewatch promises not to operate a business under the Homewatch Caregivers marks and systems in the territory or authorize others to operate franchised businesses within the territory, except as described in the franchise agreement. (This does not prohibit the company from advertising or soliciting employees or independent contractors in the territory). Typically, the territory is based on a total population of 35,000 seniors.

What franchise resources does Homewatch Caregivers offer?

Homewatch Caregivers support for franchisees includes:

Training: Before the franchised business opens, the key person and any owners that the franchisor designates must attend and successfully complete an initial training program. The training is conducted online and in an in-person or virtual classroom setting. Classroom hours include simulated ‘on-the-job’ training. In addition to the training program, franchisees must also participate in the company’s Business Implementation Program which supports franchisees with week-to-week guidance. Homewatch may also provide optional training programs as they deem necessary. The company offers an annual convention which franchisees must attend.
Marketing support: Homewatch Caregivers provides promotional and other marketing support for their franchisees.
Third-party financing: Homewatch provides limited financial support for investors seeking franchise funding. Alternatively you may be able to obtain more economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Homewatch Caregivers franchise?

Low start-up costs and an aging US population that almost guarantees your customer base are great foundations for this franchise. Moderate profits do not hurt either. If your Homewatch business only manages $63k profits per year you’ll still recoup your investment in less than three years, which ranks as very good. The only concern is the high failure rate, with almost a quarter of Homewatch franchises closing down within their first three years of operation. Investors may do well to ask Homewatch Caregivers about this issue before signing on the dotted line.

What is the process for starting a Homewatch Caregivers franchise?

It begins with an application. Start the process here.

Secure franchise funding with Swoop

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

Profitability: https://sharpsheets.io/blog/homewatch-caregivers-franchise-sales-costs-profits/

Homewatch franchise application: https://www.homewatchcaregivers.com/franchising/

Homewatch: https://www.homewatchcaregivers.com/franchising/about-us/

Failure rate: https://www.vettedbiz.com/franchises/homewatch-caregivers/

Set-up costs: https://www.franchisedirect.com/directory/homewatchcaregivers/ufoc/113/

Aging US population: https://www.prb.org/resources/fact-sheet-aging-in-the-united-states/

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