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Home Care Franchise Related Fees and Outlook


Home Care Franchise Fees:

The table below provides an overview of the estimated initial investment required to open a single unit of 18 home care franchises. It also contains a detailed profile of each franchise which presents these costs in more detail.  The profiles are extracted from the Franchise Disclosure Documents (FDD) of the 18 franchisors.  


Name of franchise Initial franchise fee Estimated Initial Investment –  Low - Estimated Initial Investment –  High -
Age Advantage Home Care $24,900 $36,500 $67,150
Always Best Care $34,500 $41,900 $63,200
AmeriCare Alliance $30,000 $69,838    $102,988
Assisting Hands Home Care $35,000 $44,950 $102,000
BrightStar $35,000 $10,7600 $180,200
ComForCare $35,000 $69,500 $89,500
Comfort Keepers $32,500 $59,600 $89,150
Elect Home Care $18,500 $67,000 $87,000
Home Helpers/Directlink $37,900 $42,150 $57,400
Home Instead $32,500 $44,050 $57,050
Home Well Senior Care $24,495 $35,895 $46,795
Homewatch International    $30,000 $90,500    $110,000
Interim Health Care $15,000 $130,650 $407,250
Right at Home $38,500 $63,590 $99,680
The Senior's Choice $25,000 $34,000 $51,000
Senior Helpers $36,000 $60,800 $81,800
Synergy Homecare $35,000 $49,240 $99,540
Visiting Angels

$21,950 up to 100K population

$27,950 up to 200K population

$38,950 up to 325K population

(Additional protected territory greater than 200K population and less than 325K population may be purchased for an additional $1,400.00 for each additional 10,000 population).   

$42,285 $69,535

 Average Ongoing Franchise Fees:

Name of Fee Average
Royalty    4%
National Advertisement 1.5%
Local Advertisement 2.2%
Additional funds for 3 months – low $13,325
Additional funds for 3 months – high $32,332
Renewal $4752


Length of the Franchise Agreement: The majority of home care franchises studies for this report offer a 10-year franchise agreement. However some franchises offer shorter term franchises.

Average Rates

The 2009 national hourly rate for home health aides increased by 5%, from $20 in 2008 to $21 in 2009. The national average hourly rate for non medical care and companionship increased by 5.6%, from $18 in 2008 to $19 in 20098. The below table shows the different rates across the Industry.

Table 3: Average rates for 2008 – 9 for Nursing Homes, Assisted Living, and Home Care.


  Nursing Homes   Assisted Living Communities Home Care Home Care Adult Day Services
  Semi Private Room Private Room   Home health aide Non medical home care and companionship      
Rate Type Daily Daily Monthly Hourly Hourly Daily
2009 Average Rate $198 $219 $3,131 $21 $19 $67
2008 Average Rate $191 $212 $3,031 $20 $18 $64
$ Change from 2008 +$7 +$7 +$100 +$1 +$1 +$3
% Change from 2008 +3.7% +3.3% +3.3% +5% +5.6% +4.7%

The above figures are purely an indication of the rates for home care services in the U.S. Each franchise has their own rates and will advise a franchisee of such on signing the franchise agreement.


senior in wheelchair with homehelperOutlook

The outlook for the home care industry is very positive. The general trend is towards continued expansion and growth. This expansion will be due to the aging population and in particular, the “baby boomer” generation reaching their twilight years. This, combined with an increase in the number of people who want to “age in place” and several factors that make home care the most practical, cost-effective and desirable option will create a growing demand for home care. Home care also appeals to a wider demographic than just seniors. It is for anyone recovering from or dealing with a debilitating illness or injury.

Home care is a strong industry for any prospective franchisee wanting to take advantage of a proven business model while also gaining job and personal satisfaction. By aiding seniors and the infirm, a franchisee will truly be making a difference in peoples’ lives.

8Market Survey of Long-Term Care Costs, The 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs, October 2009.


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