Firstlight Home Care Franchise Costs $124K – $200K (+ 2024 Profits)

FirstLight Home Care, established in 2009 and headquartered in Cincinnati, Ohio, entered the franchising market in 2010. It has quickly distinguished itself in the home care industry by offering non-medical and personal care services to seniors, new mothers, disabled adults, and others needing assistance at home. 

The franchise’s services are designed to help individuals maintain a quality life at home, which resonates with the growing desire among seniors to age in place.

What sets FirstLight Home Care apart is its commitment to a “Culture of Care” that emphasizes compassion and quality service. This approach has been recognized within the industry, earning FirstLight numerous awards for franchisee satisfaction and company culture. 

Type of Expenditure	Amount
Initial Franchise Fee	$50,000
Training Fee	$5,000
Travel and Training Expenses	$2,050 to $3,550
Business Premises	$0 to $3,300
Start-Up Supplies and Inventory	$300 to $900
Employment Screening	$275 to $360
Equipment, Signage, Graphics	$250 to $2,450
Marketing, Advertising and Promotions	$4,500
Grand Opening Marketing	$10,000
Other Paid Expenses	$5,300 to $7,600
Business Permits, Licenses and Fees	$0 to $5,000
Insurance	$7,500 to $18,000
Computer Equipment	$2,500 to $4,000
Additional Funds: 3 to 6 Months	$38,000 to $85,000
Totals	$125,000 to $200,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial franchise fee is $50,000.

Royalty Fee

The royalty fee is 5% of Gross Revenues received.

Marketing/Advertising Fee

The national advertising fee is the greater of 1% of Gross Revenues received per month or 1% of the monthly Minimum Performance Standard. The contribution requirement can be increased, but not to exceed 2% of Gross Revenues.

Transfer Fees

The transfer fee is $10,000 payable at the time of transfer.

Renewal Fees

The renewal fee is $7,500 payable at the time of renewal.

Franchise pros and cons

The Pros:

• Leadership strategy: The franchisor partners with industry-leading healthcare providers to ensure franchisees offer valuable services.
• Dedicated launch specialist: Every franchisee is assigned a professional launch specialist to guide them throughout the grand opening. 
• Direct licensure support: Direct licensure specialists help franchisees secure business licenses effortlessly. 
• Multiple revenue options: Various health care services, including companion care, dementia care, respite and specialty care for veterans, the injured, people living with disabilities and adults, provide multiple revenue streams. 
• Pre-opening training: Initial training at the Cincinnati HQs ensures franchisees are better positioned to start and operate successful businesses. 
• Ongoing support: Continued support, including weekly phone calls for the first 4 months, ensures smooth operations after the grand opening. 
• Third-party financing: The franchisor has solid relationships with third-party funding sources to help franchisees cater to the franchise fee, equipment, inventory and startup costs. 
• Allows absentee ownership: Passive ownership enables franchisees to pursue other business aspirations. 
• Exclusive territories: Brand owners operate in designated locations without worrying about potential competition from other Firstlight Home Care franchises. 
• Industry-leading tools: Innovative tools such as client care access, emergency response and ClientFirst streamline business operations. 

The Cons:

• Not a part-time investment opportunity: Franchises must operate full-time, long term. 
• Not a home-based opportunity/mobile unit: Firstlight Home Care franchises can’t operate from home or as mobile units. 

How to open a Firstlight Home Care franchise

Opening a FirstLight Home Care franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a FirstLight Home Care franchise.

1. Initial Inquiry and Research

• Gather Information: Learn about FirstLight Home Care, its services, and franchise opportunities by visiting their website or contacting them directly.
• Contact FirstLight: Express your interest and request more detailed information, including the Franchise Disclosure Document (FDD).

2. Review Franchise Disclosure Document (FDD)

• Review the FDD: Go through the FDD provided by FirstLight to understand the financial requirements, obligations, and rights as a franchisee.
• Legal and Financial Advice: Consult with a franchise attorney and a financial advisor to review the terms and ensure that you understand all legal and financial aspects.

3. Financial Planning and Approval

• Assess Financial Requirements: Ensure you meet the financial requirements for the initial investment and ongoing operational costs.
• Secure Financing: If necessary, secure financing. FirstLight may provide guidance on financing options or recommend third-party lenders.

4. Application and Approval Process

• Submit Your Application: Complete the formal application process by providing details about your financial status, business experience, and personal background.
• Interviews: Participate in interviews or discussions with the FirstLight team to further assess suitability and mutual fit.

5. Training and Preparation

• Attend Training: Undergo comprehensive training provided by FirstLight, which includes pre-training modules and a detailed 5-day classroom training at their headquarters in Cincinnati, Ohio.
• Site Selection: Work with FirstLight to identify and secure an appropriate location for your franchise based on market research and territory availability.

Disclaimer

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