Why the COVID-19 Crisis Could Lead to a Boom in Home Care Franchises

As unemployment continues to skyrocket, it’s reasonable to predict that a number of newly unemployed aspiring entrepreneurs will turn to franchising to start their own businesses and begin new careers in a range of industries, but one segment of franchising may be particularly well positioned to soak up a sizable share of prospective franchisees: home care.

According to an article in Home Health Care News, the dual impact of the coronavirus crisis, which has created both health and economic emergencies, is likely to drive new franchise candidates disproportionately to home care franchises versus other segments in franchising.

Home care has gained a reputation for being what some refer to as “recession-proof,” as the U.S.’s rapidly aging population means demand for care will only continue to grow in years to come.

 

One home-based care franchise company, Best Life Brands, recently hit a record high in new franchise agreements. This April, the Bloomfield Hills, Michigan-based company saw a 200% increase in new franchise agreements compared to April 2019.

That dramatic increase in interest is not exclusive to Best Life Brands. Franchises across the segment are reporting a market uptick in inquiries. “We started off the year with no franchises sold in January and February,” said Jake Brown, the president and CEO of home care franchise Always Best Care. “All of a sudden, we started selling in March and April. We have a fair amount of high-quality candidates in the pipeline, so we think it may uptick even faster.”

On top of the health and economic motivations driving prospects to home care franchises, the segment can likely attribute some of its gains to declines in other segments, particularly foodservice.

“If you’re a fast-food franchise, restaurants aren’t operating,” Brown told HHCN. “This could give the senior care industry a better opportunity to access quality leads.”

Read the full article at homehealthcarenews.com.