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Home Helpers Franchise Sales, Costs & Profits (2023)

With 300+ locations in the US and a +10% annual growth rate over the past 10 years, Home Helpers is a strong senior home care franchise that has steadily increased its scope and presence over the years.

With a startup cost of $118,000 it’s also one of the most affordable senior home care franchise today. What about revenues and profits?

The Average Unit Volume (yearly revenue) is $1,294,000, which suggests a very profitable business. Is it really?

In this article we’re looking into Home Helpers franchises and the latest Franchise Disclosure Document to find out how much it (really) costs, and how profitable it really is. Let’s dive in!

Key stats

Franchise fee$48,900
Royalty fee3-6%
Marketing fee0.5-2% + 3%
Investment (mid-point)$118,000
Average sales$1,294,000
Sales to investment ratio11x
Payback period3-4 years
Minimum net worth$250,000
Minimum liquid capital$100,000
Source: Franchise Disclosure Document 2022
Home Helpers Home Care franchise financial plan

Home Helpers 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

Excellent 4.8/5 based on 70 reviews

About Home Helpers Home Care

Home Helpers Home Care is an in-home care service provider headquartered in Blue Ash, Ohio. Its caregivers offer a variety of services such as personal Care & Companionship, Nutrition and Well-Being, Safety and 24-hour monitoring and wellness calls for seniors, working parents, new mothers and those who need recuperative or continuing care.

Home Helpers Home Care was established in 1996 and began franchising in 1997. The company has grown to a leading world-class in-home care provider 25 years later, expanding to 303 franchises in the US by 2022.

With its Cared-4 program, a holistic approach to meeting the four primary areas of need and driven by bold values of serving their clients, Home Helpers Home Care in its commitment to expanding into more markets, provides exceptional business opportunities to entrepreneurs and investors who want to be part of an industry that is ever growing. 

Home Helpers franchise: pros and cons

The Pros:

  • Exclusive territory protection: The franchisor grants its franchisees the right to operate in an exclusive territory defined in its franchise agreement. It does not authorize any other franchise or operate a competing channel in the protected area.
  • Training and ongoing support: The franchisor offers its franchisees comprehensive onboarding support consisting of 16 on-the-job and 26.5 classroom hours of initial training to give them the basics and an understanding of all the concepts needed to run a successful franchise.
  • Home-based opportunity: The franchise can be operated from home. Franchisees don’t incur the hassle and costs of establishing an office space and have the freedom, good work-life balance, family time and opportunity to work on expanding to multiple units.
  • Passive investment: The franchisor allows for absentee ownership. Franchisees can leave their clinics under the care of franchise managers and run their franchises along with other investments and formal employment.
  • Third-party financing: The franchisor has relationships with third-party partners to offer its franchisees funding to cover their startup costs, franchise fees, equipment and ongoing costs.
  • Simple franchise concept: The franchise requires a minimum of one staff member to launch, giving franchisees low startup and staff costs and a chance to get started fast.
  • Marketing support: The franchisor offers its franchisees solid marketing and advertising strategies to help them create service awareness and high client retention rates. These include social media, regional advertising, email marketing and web development, among others.

The Cons:

  • Not a part-time business: The franchisor requires franchisees to have their clinics open full-time following the normal business hours schedule.
  • Competition: The franchises face competition from Right at Home and Senior Helpers Inc., to name a few.

Home Helpers franchise costs

You would have to invest on average $118,000 to open a Home Helpers Home Care franchised business (or $48,000 for a conversion).

Also note that you would invest on average an additional $47,000 if you choose to offer skilled care services.

The investment covers all the start-up costs you may need to open a senior home care franchised business. You must pay the franchisor an initial franchise fee of $49,000.

In addition to this franchise fee, the investment also covers:

  • Formulation costs: business foundation, policies and procedure manuals, etc.
  • Equipment: equipment and furniture, computer system, etc.
  • Operating costs: training and living expenses, initial rent, monthly office rental payment, insurance, working capital for the first 3 months, etc.

Startup costs

Type of ExpenditureAmount
Initial franchise fee$48,900
Formulation costs$10,850
Equipment$3,000 – $6,000
Operating costs$33,600 – $73,500
Total$96,350 – $139,250
Source: Franchise Disclosure Document 2022

Startup costs (conversion)

Type of ExpenditureAmount
Initial franchise fee$24,450 – $48,900
Formulation costs$1,500
Equipment$0 – $6,000
Operating costs$0 – $13,500
Total$25,950 – $69,900
Source: Franchise Disclosure Document 2022

Additional startup costs (Skilled Care Services)

In addition to the non-medical services offered by a standard Home Helpers franchise, you may want to choose to offer skilled care services (nursing services). These services do incur additional startup costs though which we have detailed below:

Type of ExpenditureAmount
Formulation costs$500 – $1,500
Equipment$750 – $4,250
Marketing$1,500 – $2,500
Operating costs$33,500 – $48,500
Total$36,250 – $56,750
Source: Franchise Disclosure Document 2022

Home Helpers franchise fees

The initial franchise fee for a Home Helpers franchise is $48,900

In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 3-6% of revenues, as well as a variable marketing fee of 0.5-2% + 3% of revenues.

Home Helpers franchise sales

On average, a Home Helpers Home Care franchise makes $1,294,000 in sales per year.

This number is the average sales per franchise business for 105 of the 308 franchised businesses that operated in all of 2021. This is a slight increase compared to 2020 (approximately 9.9%, $1,177,000).

Is Home Helpers a good franchise investment?

As per our estimates, a Home Helpers franchise has 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 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 $1,294,000 on day one.

Home Helpers Home Care franchise financial plan

Home Helpers 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

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.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.