Visiting Angels Franchise Sales, Costs & Profits (2023)

With 566 franchises in the US in 2023, Visiting Angels is one of the leader in the senior home care industry. So if you’re looking for a solid franchise to start in the senior care industry, look no further.

But what about profits? Is this a profitable business? It does seem so, let us explain:

With an initial investment of $148,000 (only), Visiting Angels is an affordable franchise. In addition, one franchise makes on average $1,256,000 in yearly revenue, that’s an excellent 3-4 years payback as per our estimations.

Want to know more? In this article we’re looking into Visiting Angels and its latest FDD to find out how much it (really) costs and how profitable the business really is. Let’s dive in!

Key stats

Franchise fee	$70,950
Royalty fee	3.50%
Marketing fee	2.25%
Investment (mid-point)	$148,000
Average sales	$1,256,000
Sales to investment ratio	262.0x
Payback period	[franchise_value_investment_payback]
Minimum net worth	$110,000
Minimum liquid capital	$110,000

About Visiting Angels

Visiting Angels is a chain of home care agencies located in Bryn Mawr, Pennsylvania and owned by Living Assistance Services. Home care providers offer home care services for the elderly such as personal care, respite care, companion care, etc. on an hourly, overnight, or 24-hour basis.

Visiting Angels was founded in 1992 and began franchising in 1998. By 2020, the chain had grown to 578 locations in the US, with 566 franchised and 12 international locations.

Visiting Angels has continued to offer professional in-home care services to millions of elderly adults, making their lives safer and more enjoyable at home while providing passionate franchise owners with a business opportunity that is equally rewarding and builds meaningful relationships with their clients. As a franchise owner, you also join an important sector of the community, as the home care industry keeps ballooning, with at least 10,000 people estimated to turn 65 years old each year, increasing the demand for the services in the U.S.

Visiting Angels franchise pros and cons

The Pros:

• Exclusive territory protection: The franchisor allows its franchisees to operate in an exclusive territory. As long as the franchisees comply with the agreement, it does not allow other franchises to operate or establish competing businesses in the protected territory.
• Low staff and inventory requirements: The franchise can be run by a minimum of one staff member and has low inventory requirements, making it simple to operate with minimal operating costs.
• Pre-opening training: The franchisor has a comprehensive training program to help franchisees get on board and run their franchisees smoothly. Also, it offers them growth strategies and ongoing training on customer service and operations.
• Marketing and public relations: Visiting Angels provides its franchisees with marketing and advertising strategies tailored to help them attract customers and reach a wider geographical coverage. Franchisees get access to co-ops advertising, web development, email marketing, national media and regional advertising programs.
• Third-party financing: The franchisor has established third-party relationships to offer franchisees financing. It helps them fund their start-up and ongoing costs.
• Site selection: Visit Angels helps its franchisees identify a strong territory for setting up their shops and guidance in developing their franchises.

The Cons:

• Not a passive investment: The franchise does not allow for absentee ownership. Franchisees must be actively involved in the decision-making and operations of their franchises.
• Not a home-based opportunity: The franchise cannot be run from home or a vehicle. The franchisees must have a fixed office space, retail facility or warehouse.
• Not a part-time business: The franchisor requires its franchisees to operate on a full-time basis for at least 40 hours per week.

Visiting Angels franchise costs

You would have to invest an average of $148,000 to start a Visiting Angels franchise.

The investment covers all the start-up costs you may need to open a Visiting Angels franchise business. You must pay the franchisor an initial franchise fee of $52,000 – $90,000. In addition to this franchise fee, the investment also covers:

• Formulation costs: deposits, insurance, and license leases
• Equipment: computer and software
• Initial marketing fees: advertising fee plus local ads
• Operating costs: printing supplies, workers’ compensation insurance, minimum royalty, travel expenses, additional funds for 3 months, etc.

Startup costs

Here’s the full breakdown of costs:

Type of Expenditure	Amount
Initial franchise fee	$51,950 – $89,950
Formulation costs	$5,000
Equipment	$1,450 – $6,000
Initial marketing fees	$2,075 – $5,325
Operating costs	$63,985 – $64,875
Total	$125,460 – $171,150

Visiting Angels franchise fees

Visiting Angels franchise sales

On average, a Visiting Angels franchise made $1,256,000 in sales per year in 2022. This is a +10% increase compared to 2021 ($1,145,000).

Unfortunately, Visiting Angels doesn’t provide a lot of information about the financial performance of its franchises in its Franchise Disclosure Document. Instead, we obtained this number by dividing the total revenue of all the franchises ($673 million) by the number of franchise-owned businesses (536 as of 2022).

Yet, Visiting Angels does provide a distribution of revenue based on revenue tranches as shown below. Note that the franchises in the chart below are franchises that were opened for at least 5 years at time of the FDD (end of 2022).

Is Visiting Angels a good franchise investment?

If we were to assume a 10% net profit margin (Visiting Angels does not provide any information on profitability in its FDD), we find that Visiting Angels franchises have a 3-4 years payback on average.

This means that, on average, it would take you 3 to 4 years on average as a franchisee to repay the initial investment cost of $148,000 by using the profits generated by the business itself.

This is an excellent payback and, from that perspective, a great investment.

Note that we factored in a 2 year revenue ramp-up as we conservatively assume you couldn’t get to the average revenue of $1,256,000 day 1. Instead, it may take you a few years (probably 5 or so) to get there.

Disclaimer

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