Interim HealthCare Franchise Sales, Costs & Profits (2023)
With 339 franchised businesses in the US at the end of 2022, Interim HealthCare is one of the leading senior home care franchises, along with Home Instead, Right at Home and others, just to name a few. So if you’re looking to get into the senior home care industry, you may want to consider Interim HealthCare.
But what about profits? How much can you realistically expect to make as a franchisee?
We’ve dug into the Franchise Disclosure Document. On average, we found that a Interim HealthCare franchise makes $1,769,000 in turnover per year. What about the costs? Is this worth investing?
In this article we’re looking at Interim HealthCare and its latest FDD to find out how much it (really) costs, and how much profits you can expect to make as a franchisee. Let’s dive in!
Key stats
| Franchise fee | $60,000 |
| Royalty fee | 5.25% |
| Marketing fee | 1.0% |
| Investment (mid-point) | $423,000 |
| Average sales | $1,769,000 |
| Sales to investment ratio | 4.2x |
| Payback period | 5 years |
| Minimum net worth | $300,000 |
| Minimum liquid capital | $100,000 |
Interim HealthCare 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 Interim HealthCare
Interim HealthCare is a leading healthcare franchise company owned and operating under the Caring Brands International corporate family, headquartered in Sunrise, Florida.
Interim HealthCare was founded in 1966 as the Medical Personnel Pool. It changed into Interim HealthCare in 1992 to accommodate diverse lines of business under one banner and reflect the services offered.
Interim HealthCare began franchising in the same year it was founded and it had in operation 631 locations, including 354 franchises in the US, by the end of 2022. Earlier this year it ranked No. 1 in Senior Care for a fifth consecutive year
Today, the Interim HealthCare brand provides an array of home care, hospice, and healthcare staffing services.
Its HomeLife Enrichment® supports the mind and body, lifts spirits, and helps patients live healthily and happily while providing a unique business opportunity to hundreds of passionate and compassionate franchise owners who help spread the Interim Healthcare advantage into more than 300 locations across the US.
Interim HealthCare franchise pros and cons
The Pros:
- Simple operations: The franchise can be operated with low inventory and staff requirements in a small office, reducing the startup and ongoing costs.
- Comprehensive training: The franchisor provides its franchisees with a detailed training program to get them on board and prepare them to run their Interim HealthCare franchise smoothly. Its initial training program consists of 40 hours of online training and 40 hours of classroom training. Also, it provides them with growth strategies and onsite visits.
- Exclusive territory protection: The franchisor allows the franchisees to operate their clinics in an exclusive geographic area defined based on certain market characteristics. Under the agreement, the franchisor does not license any other franchise or operate a competing business in the protected territory.
- Marketing support: The franchisor provides its franchisees with turnkey marketing strategies to help boost sales and increase revenue. Franchisees can leverage a brand’s nationwide popularity with social media, ad templates, SEO, web development, and local store promotional campaigns.
- Financial assistance: The brand helps its franchisees finance their startup costs, franchise fee, equipment, inventory, payroll, and accounts receivable through third-party financing.
The Cons:
- Not a home-based investment: The franchise cannot be operated from home or a vehicle. Franchisees must have an office space to operate from.
- No absentee ownership: The franchise does not present a passive investment opportunity. Franchisees must be actively involved in the daily operations and management of their agencies.
- Not a part-time business: The franchisees must open on a full-time basis.
Interim HealthCare franchise costs
You would have to invest an average of $423,000 to open an Interim HealthCare franchised business.
The investment covers all the start-up costs you may need to start a senior home care franchised business. You must pay the franchisor an initial franchise fee of $60,000. In addition to this franchise fee, the investment also covers:
- Formulation costs: leasehold improvements, furniture, fixtures, utility deposits, business licenses, regulatory fees, etc.
- Operating costs: real property, training expenses, start-up supplies, insurance, professional fees, accreditation fees, additional funds for 9-12 months, etc.
Startup costs
Here’s the breakdown of startup costs per franchised business:
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $60,000 |
| Formulation costs | $4,150 – $11,500 |
| Equipment | $2,500 – $3,500 |
| Initial marketing | $5,500 – $9,500 |
| Operating costs | $312,600 – $377,500 |
| Total | $384,750 – $462,000 |
Interim HealthCare 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
Interim HealthCare franchise fees
The initial franchise fee for a Interim HealthCare franchise is $60,000
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.25% of revenues, as well as a variable marketing fee of 1.0% of revenues.
Interim HealthCare franchise revenue
On average, an Interim HealthCare franchise made $1,769,000 in sales per year in 2021.
This is a slight increase compared to 2020 (1.5%, $1,742,000).
However, Interim HealthCare doesn’t provide extensive information about its healthcare franchise’s financial performance in its Franchise Disclosure Document.
Instead, we obtained this number by dividing the total revenue of all the franchises ($600 million) by the number of franchise-owned businesses (339 as of 2021).
Is Interim HealthCare a good franchise investment?
When we compare the initial investment of $423,000 (on average) to start a Interim HealthCare franchised business to the profits of the business, we estimate that the franchise has an excellent 5 years payback.
In other words, you would be able to repay investors and creditors (as in anyone who invested in your franchise, including any loans from banks) within 5 years on average.
This is a great payback, in line with most senior home care franchises (3-4 years payback on average as per our own benchmarks).
Interim HealthCare 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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