Always Best Care Franchise Sales, Costs & Profits (2023)
This article was updated with the 2023 Franchise Disclosure Document
Since it started franchising in 2006, Always Best Care has grown steadily and now has over 226 franchises across the US. So if you’re looking for a senior care home franchise to start, Always Best Care is a solid alternative.
What about the financials? With one of the lowest startup cost in the industry ($113,000) and a yearly revenue of $920,000, Always Best Care seems to be a profitable franchise. Is it really?
In this article we’re looking into Always Best Care and its latest FDD to find out how much it (really) costs, and how profitable it really is. Let’s dive in!
Key stats
| Franchise fee | $49,900 |
| Royalty fee | 6.0% |
| Marketing fee | 2.0% |
| Investment (mid-point) | $113,000 |
| Average sales | $920,000 |
| Sales to investment ratio | 8.1x |
| Payback period | 3-4 years |
| Minimum net worth | $200,000 |
| Minimum liquid capital | $100,000 |
Always Best Care Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
About Always Best Care Franchise
Headquartered in Roseville, California, Always Best Care is a network of in-home care providers that offer medical or non-medical care to seniors.
Always Best Care was founded by Michael Newman in 1996 with the vision of providing trusted care, compassionate support and professional advice to seniors in the community. Always Best Care began franchising in 2007 and currently has 226 franchises in the US and two international locations.
Through its growth, the company has developed strong values of caring, trust, respect and communication in building respectful relationships with clients and creating a network of independently owned franchises.
Today, Always Best Care has emerged as one of the nation’s leading providers of in-home care, senior living referral services, skilled home health care, special care services and respite care.
Always Best Care can be a promising opportunity for franchise owners looking for a career in a potentially rewarding industry with increasing demand trends fueled by a growing senior population, with the number of people over 65 projected to double in the next 30 years.
Always Best Care franchise: pros and cons
The Pros:
- Diversified income channels: The company offers its franchisees various ways to boost sales and improve their bottom line through its three revenue streams, namely in-home care, assisted living referral services and skilled home health care services.
- Exclusive territory protection: Always Best Care allows its franchisees to operate in an exclusive territory. Under the agreement, the franchisor does not establish any other franchises or operate a competing business in the designated area.
- Third-party financing: The franchisor has established partnerships with third-party financiers to provide qualified buyers financing to fund their franchise fees, startup costs, equipment, developmental costs and ongoing costs.
- Pre-opening training: The franchisor has a detailed training program to train its franchisees about its business concept, management and operations, customer service and managing staff. Also, it gives them guidance on a successful grand opening as well as ongoing training on field operations.
- Marketing and advertising: Always Best Care has detailed marketing and advertising strategies to help franchisees create awareness about their agencies and boost sales. These include national media, regional advertising, social media, email marketing and loyalty program apps.
- Site selection: The franchisor offers its franchisees site selection assistance to identify a viable site, as well as lease negotiation.
The Cons:
- Not a passive investment opportunity: The franchise does not allow for absentee ownership. Franchisees need to take part in the day-to-day operations and management of their home care agencies.
- Not a part-time business: The franchise must be open full-time based on standard business operating hours.
- Not a home-based investment. The franchise cannot be run from home or a mobile unit. Franchisees must have an established office, retail or warehouse facility to operate from.
Always Best Care franchise costs
You would have to invest an average of $113,000 to open an Always Best Care franchised business. Additionally, there are additional costs of $79,000 for skilled nursing services.
The investment covers all the start-up costs you may need to open an Always Best Care franchised business. You must pay the franchisor an initial franchise fee of $49,900.
In addition to this franchise fee, the investment also covers:
- Formulation costs: Leasehold improvements, furniture and fixtures, signage, miscellaneous opening costs, grand opening inventory, permits, licenses, policies and procedures manuals, professional fees, etc.
- Equipment: Office equipment, computer equipment, software, and printer.
- Operating costs: Travel and other expenses, rent, insurance, additional funds for 3 months, etc.
Startup costs
Here’s the full breakdown of costs:
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $49,900 |
| Formulation costs | $5,325 – $33,000 |
| Equipment | $7,000 – $13,000 |
| Initial marketing fees | $1,500 |
| Operating costs | $26,000 – $48,500 |
| Total | $81,025 – $145,900 |
Skilled nursing services
Note that if you choose to offer skilled nursing services, your startup costs will increase. Here is the additional initial investment cost for offering skilled nursing services:
| Type of Expenditure | Amount |
|---|---|
| Formulation costs | $3,250 – $19,000 |
| Equipment | $1,500 – $2,500 |
| Operating costs | $43,500 – $87,000 |
| Total | $48,500 – $108,500 |
Always Best Care franchise fees
The initial franchise fee for a Always Best Care franchise is $49,900
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6.0% of revenues, as well as a variable marketing fee of 2.0% of revenues.
Always Best Care franchise sales
On average, an Always Best Care franchise makes $920,000 in sales per year.
This number is the average sales per franchise business for the 231 franchised businesses that operated in all of 2022. This is a slight increase as compared to 2021 (9.3%, $842,000).
Is Always Best Care a good franchise investment?
As per our estimates, Always Best Care franchises have a 3 – 4 years payback, which is in line with most senior home care franchises.
A 3 to 4 years payback is excellent: you would be able to repay your $113,000 initial investment within 3 to 4 years (whether you pay back investors or the bank) by using the profits generated by the business.
Note that we assumed a 15% net profit margin to calculate payback, as well as a 2-year revenue ramp-up as wouldn’t necessarily reach the average yearly revenue of $920,000 on day one.
Always Best Care Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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