Despite Recession, Franchises Still Ripe for Growth in Senior Home Care
Senior care franchising opportunities abound in an industry that is one of the “hottest” sectors today, according to a May report released by Franchise Business Review.
The initial median investment required in launching a senior care franchise is $66,148, the report found, with the potential return on investment being significantly higher than many other franchise businesses.
“It is not uncommon among the top senior care franchises to build gross revenues to a million dollars or more, with gross margins of 30%–40%,” the report states. “Compare that to many food and retail franchises that require an initial investment that can easily exceed $500,000 and operate with slim margins and you will quickly see what makes senior care franchises so attractive.”
The recession has taken a toll on the sector, like all franchising sectors, making it harder for franchisees to access capital for their initial investment. It has provided more of an opportunity for larger companies to get into the space, Franchise Business Review writes, but there is room for growth.
“As you look at some of the public sector companies that are in home care, they have appetite and they can get scale and leverage resources when they can see an opportunity to have some of those consolidations with smaller providers,” said Interim Healthcare CEO Kathleen Gilmartin in the report. “In the sector of non-medical/personal care, I think there’s still pretty much an open field for growth. I have not witnessed a lot of consolidation.”
“What two years ago may have looked like a ‘safe’ industry in a down economy is today one of the hottest sectors, offering some of the best franchise opportunities,” writes Franchise Business Review.
View the report.
Written by Elizabeth Ecker