Care franchises have always been a popular business model for entrepreneurs wanting to get into the care industry. They provide both a robust and enduring franchise opportunity, as well as the means to deliver exceptional care to those in need.
Franchise companies specializing in home care have taken off in recent years, with families looking to move their loved ones away from traditional residential care homes and into a familiar environment.
This trend has led to franchise brands like Caremark UK, Radfield Home Care, Apollo Care, and Home Instead see increased demand, with compassionate investors wanting to join the care sector and make a difference as well as a profit
“Our customers are both local authority and private customers. In terms of the actual service itself, it is predominantly personal care. However, if people require assistance with other things – cleaning, cooking, shopping – we will undertake that as well for people as part of the overall service,” said David Glover, managing director of Caremark.
“We appreciate that the bottom line is extremely important and our franchisees – both in the U.K. and internationally – do very well. But if the bottom line is your sole focus, then maybe a Caremark franchise isn’t for you; we want franchisees that are going to always put the customer first.”
Over the past 20 years, home care has been one of the fastest-growing industries in the United States. This growth has been replicated in the franchise industry by home care franchises.
How do you start a home care franchise?
In 2011 one-third of the home care agencies were franchises, but by 2016 this had increased to almost a half, according to market research firm Home Care Pulse LLC.
To open your own unit as part of a care franchise, you don’t necessarily need previous experience in running a domiciliary care operation.
A passion for care services is useful, but as with many sectors of the franchise industry, your franchisor will provide all the training and operation manuals that you should need to deliver quality care services to clients, as well as building a successful business in the process.
Home care is when a care professional visits and cares for clients in their own homes, as opposed to at a residential care business, where clients live and are cared for in a structured, routine-driven manner.
What is home care, and how is it different from a residential care home?
Home care, or domiciliary care, has several benefits – particularly as many baby boomers are now approaching 65 years old and want to remain in their own homes as they age. The term ‘silver tsunami’ is mentioned frequently in this sector, and it’s one of the main reasons why so many franchisees are getting involved.
Staff in residential care homes aren’t always a personality fit with the clients that they serve, which can lead to friction and an undesirable care experience.
With home care, however, care providers are paired directly with their clients so that everybody involved benefits. The families of the client can have peace of mind that their loved one is receiving the utmost care at home, and the franchise owner can be secure in the knowledge that they’re making a difference. Ultimately, home care visits can be a more reliable and reassuring way of caring for elderly relatives.
When looking to raise finance for a care franchise, one of the first factors to consider would be to ensure that you can afford the business. Most franchisors will be able to advise you of the total investment costs including the proposed working capital needed to set up the business.
How to fund your home care franchise
This total cost would also include the franchise fee, equipment costs, and professional fees such as CQC registration (for home care franchises based in the U.K.). Franchise banks are able to support your purchase by lending between 50 to 70 per cent of these costs, with the remainder needing to be input from your own personal savings. Most of this information will be provided as part of a franchise disclosure document (FDD), which is given to prospective franchisees before an agreement is made.
Most franchisors encourage and support their franchisees with producing their business plan. Banks can provide business planning templates to assist business owners in writing their plans; however, a franchise company will also have developed templates to support an individuals’ journey toward care franchise ownership.
There are many care franchise opportunities in the market today, and deciding which one suits your own needs and business goals requires lots of self-reflection.
Choosing the right home care franchise opportunity for you
That being said, the numbers are there to back up any kind of investment into this industry. According to Age UK, for example, by the year 2040, nearly one in four people in the U.K. will be aged 65 or above. This is why care franchises like Kare Plus, BrightStar Care, and Interim HealthCare have grown at a consistent rate over the previous decade.
If you can find a brand that aligns with your values and puts exceptional care to clients at the forefront of its strategy, then this sector could be the perfect fit for your franchising plans.
