Are Senior Care Franchise Opportunities Worth It?
In-home care services are in high demand as the Baby Boomer population ages. Owning a senior care franchise gives you the chance to tap into this growing market. But while this demand has been driving the industry for many years, entrepreneurs often question if investing in a senior care franchise opportunity is worth it.
One of the biggest draws for those entering the senior care industry is the high demand for services. In fact, Visiting Angels has been listed among the best recession-resistant franchise opportunities. But that’s not all. Owning a senior care franchise also offers the potential of earning a healthy profit. In fact, the senior care industry produces some of the highest profit margins among all franchise types.
Steady business and the ability to do meaningful work are two great draws for entrepreneurs looking for their next opportunity. Once you’ve decided on a senior care franchise, finding the right franchisor to partner with will be one of the biggest decisions you make. Finding the right partnership will make the senior care franchise opportunity you choose worth it!
Understanding the Profitability of Senior Care Franchise Opportunities
According to a survey conducted by the Franchise Business Review, senior care franchisees earn the second highest income among all surveyed franchise sectors, with an average pre-tax income of $123,000. As this figure is only an average, it’s important to keep in mind that some franchisees earn more, while others earn less. The leading senior care franchises have even been shown to accumulate gross revenues of over a million dollars.
As you research senior care franchises to partner with, there are two important steps to take to understand the profitability you could enjoy as a franchisee. First, speak with current franchisees and ask questions about their experience. In particular, you may want to ask about the early stages of their business ownership journey, including how long it took to turn a profit and how quickly they were able to develop a client base with the help of the franchisor.
Next, carefully read over the Franchise Disclosure Document (FDD) provided by the franchisor. Item 19 in the FDD should provide you with detailed information about the franchise brand, the business model used by the franchisor, and the agreements you will be held to when you become a franchisee.
This should include in-depth statistics about the brand’s Financial Performance Representations, including the earnings of current franchisees. Most franchisors use this space to present the gross sales of franchise locations rather than their profitability. As a result, you may need to do some research about the average business expenses you can expect to face and then subtract these figures from the gross sales numbers.
Choosing the Most Profitable Senior Care Franchise Opportunity
Every business type has specific issues regarding the generation of revenue. When it comes to senior care, the main areas you’ll need to keep an eye on are labor costs, rent, marketing fees, and royalties, as well as your own salary. The terms of the franchise agreement you sign will thus play a huge role in your ability to turn a profit.
Choosing a senior care franchise opportunity that enables you to offer a comprehensive range of services will ensure you reach more clients in your local area and build additional streams of revenue. Additionally, opting to work with a franchisor that charges low royalty rates will make it possible for you to retain a greater percentage of your profits.
The Value of a Senior Care Franchise Opportunity Beyond Profits
Another reason why so many entrepreneurs are drawn to the senior care industry is that the rewards of owning a business in this sector go beyond turning a healthy profit. Although senior care franchise opportunities often offer a higher-than-average income and a great long-term ROI, these aren’t the only benefits to consider.
In addition to the value of a solid investment, you can also experience the rewards that come with giving back to your community and offering much-needed services that make a huge difference in the lives of local families. This higher purpose translates to a better experience of business ownership that simply can’t be replicated with dollar signs.
Are you ready to take advantage of a senior care franchise opportunity that allows you to turn a profit while helping others? Learn more about partnering with Visiting Angels® in your upcoming business venture. Contact our franchising team today at 800-365-4189, or request additional information!