Franchise Deep Dive: Home Instead Franchise Costs, Fees, Profit and Data

Recently acquired by Honor Technology, Inc., the global in-home senior care franchise, Home Instead, is one of the more exciting brands in the senior care space.

By Luca Piacentini1851 Franchise Managing Editor

7:07AM • 03/12/23

LAST UPDATED: January 20, 2022

FRANCHISE WEBSITE: https://franchises.homeinstead.com/

NUMBER OF LOCATIONS: 1,200 locations (604 in the U.S.)

REPORTED COST TO GET IN: $103,000 to $130,000

REPORTED ROI (Item 19): $2,229,479 (Average gross sales)

Home Instead Senior Care is a leading provider of in-home care services for aging adults worldwide. According to the U.S. Census, there are now more people over the age of 65 than there are children under 5. Roughly 10,000 people turn 80 every day, creating a greater demand for senior care than ever before.

How Many Home Instead Locations Are There?

Home Instead Senior Care was founded in 1994 by Paul Hogan and his wife Lori, who were inspired to start their own senior care business after having difficulty taking care of Paul’s grandmother, Eleanor, who didn’t want to go to a nursing home. The Hogans knew other families were going through the same struggle. So, Hogan’s grandmother became Home Instead’s first client. After receiving consistent care and getting re-engaged with activities she loved, her health improved.

The Hogans began offering their services to other families in the Omaha area and eventually franchised Home Instead in 1995. The brand expanded quickly. Today, Home Instead Senior Care is one of the biggest senior home care franchises in the U.S., ranked No. 155 on Entrepreneur’s 2023 Franchise 500 list.

In early August 2021, Home Instead Senior Care announced that it had been acquired by Honor Technology, Inc. The acquisition brings together the largest, highest-touch home care network and the leading home care technology and operations platform to transform the professional caregiver and client experience and revolutionize care for older adults.

What Is the Home Instead Business Model?

Partnering with Home Instead helps franchisees launch a successful home care network in their market. According to the brand’s website, there are three ways to become a Home Instead franchise owner:

Open a New Franchise

Franchisees will need to secure the necessary licenses (if applicable and varies by state and province), prepare an office space, set up customer relationship management software and other operational processes, hire staff members and Care Professionals, and complete a wide variety of other critical start-up activities.

Purchase an Existing Franchise

For those looking to make a new career move or take a great business to the next level, purchasing an existing Home Instead franchise may be the best option. Franchise prices are dependent on a number of factors, including the business' current assessed value. The candidate and the existing owner will handle all financial negotiations. However, the Home Office must approve the buyer of a Home Instead franchise through its owner evaluation process.

Convert an Existing Business

If someone has an existing home care business, they can convert it into a Home Instead franchise. They will be able to maintain ownership of the business, client base and referral provider network, in addition to gaining all of the benefits and support of a franchise.

How Much Can Home Instead Owners Make?

According to the 2022 FDD, the Gross Sales data in the table below is based upon information reported to Home Instead by the 604 Home Instead U.S. Franchised Businesses in operation during the entire calendar year ending December 31, 2021, on an individual per franchise basis.

Average Gross Sales: $2,229,479.95
Number and Percentage of Franchised Businesses Meeting or Exceeding Average: 231 / 38%
Median Gross Sales Per Franchised Business: $1,898,577.50
Highest Franchised Business Gross Sales: $9,547,031
Lowest Franchised Business Gross Sales: $115,342.40

How Much Does It Cost to Open a Home Instead?

The total initial investment necessary to open a Home Instead franchise is $103,000 to $130,000, based on Item 7 of the company’s 2022 FDD.

Initial Fee: $59,000
Operating Software—3 Months: $0 to $500
Training and Living Expenses While Training: 500 to $1,000
Real Estate and Expenses: $1,000 to $3,500
Equipment: $3,000 to $5,000
Signs: $1,000 to $5,000
Miscellaneous Opening Costs, Including Insurance Deposit: $7,000 to $10,000
Inventory: $500 to $1,000
Advertising—3 Months: $1,000 to $5,000
Additional Funds—6 Months: $30,000 to $40,000

What If the Franchise Fee for Home Instead?

Based on Items 5 and 6 of the company’s 2022 FDD:

Initial Franchise Fee: $59,000
Royalty Fee: 5% of Gross Sales
Marketing Fund: 2% of monthly Gross Sales

Who Is the Leadership of Home Instead?

What Helpful Articles Can I Read to Learn More About Home Instead?

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