The Analytical Side to Senior Care Franchise Opportunities
When you’re comparing senior care franchise opportunities, an analytical mindset is important. Whether you’re judging a senior care franchisor, a regional senior care market, or how ready you are to purchase a senior care franchise, it always pays to take a careful approach. That means asking the right questions, acquiring as much data and information as possible, and making a diligent assessment of the senior care franchise opportunity you’re considering.
Analyzing Senior Care Franchise Companies
The franchisor you choose for your business will have a big impact on your ability to establish, operate, and grow your senior care agency. There are big differences from one senior care franchise company to the next. Careful analysis of different franchisors can help you avoid common pitfalls of senior care franchise opportunities.
The best sources of information will be the franchise disclosure document, interviews with current and past franchisees, and industry resources focused on franchising. Some of the questions you’ll want answers to include:
- What level of initial investment does the franchisor require? Are there hidden fees?
- If the investment is low, do they offer the resources I need for my franchise to succeed?
- If the investment is high, am I getting enough out of the franchisor to merit these costs?
- How high are royalties and other ongoing fees? How are they structured?
- What is the average margin for a location with this franchisor?
- How long, on average, does it take for franchises to become self-supporting?
- What common concerns do existing and past franchisees express?
- Do the franchisor’s values and vision of care align with my own?
Analyzing Senior Care Franchise Markets
Choosing the right franchisor is only half of a senior care franchise opportunity. It’s also crucial that you choose the right market. When analyzing a potential market, you’ll need to consider state-specific regulations, the characteristics of your target market, and the competition you’ll face within the area.
Some of the best sources for information when performing a market analysis include US Census data, interviews with local seniors and soon-to-be seniors, interviews with local professionals in senior care-adjacent fields (i.e. physiotherapy), and local news sources. Questions you should consider at this stage include:
- How many seniors are in this market? How many soon-to-be seniors?
- What types of licensing is required to provide senior care in this market?
- How do federal and state public services affect the senior care market?
- What is income distribution like within your target market?
- How will the regional geography affect your ability to provide care?
- What is the existing market in this area for in-home care?
- What is the referral potential in the area?
- Are there specific care needs that the current market is not adequately meeting?
- What areas of distinction can separate you from other providers?
Don’t be afraid to ask for advice. If you are speaking with franchisees, their care directors are often willing to provide guidance and advice about how to analyze local markets. When you speak with past franchisees, they will be able to speak from experience on how the best ways to analyze senior care franchise opportunities.
Learn more about senior care franchise opportunities with Visiting Angels® by calling 800-365-4189 today or requesting information online.