1Heart Caregiver Services Franchise in 2024: Costs, Fee & FDD

1Heart Caregiver Services is a well-respected brand in the home and senior care industry, founded by CEO Belina Calderon-Nernberg in 2004. Headquartered in California, 1Heart is built on the mission of delivering compassionate, high-quality, and dependable care for seniors in need. Over the years, the company has gained recognition for its innovative approach to senior care, combining traditional caregiving with holistic methods to enhance the well-being of its clients. With an aging population in the U.S. and increasing demand for in-home care, 1Heart has positioned itself as a strong contender in the rapidly expanding senior care franchise space.

The franchise provides a wide range of services, including non-medical caregiving, companionship, respite care, personal assistance with daily activities, and memory care for individuals with Alzheimer’s or dementia. Additionally, 1Heart offers ancillary services like care assessments, fall prevention programs, and transitional care for seniors moving between hospitals and homes. Its target market includes seniors who wish to age in place, families needing support for loved ones, and individuals recovering from illness or surgery.

Today, 1Heart operates numerous locations across the United States, serving thousands of clients annually. The franchise has seen steady growth as more entrepreneurs enter the senior care market, recognizing the high demand and steady revenue potential. With a focus on U.S. expansion, 1Heart is well-positioned to scale further and make an even bigger impact on families and communities in need of reliable caregiving solutions.

For franchisees, 1Heart offers extensive support, including a 7-Step Caregiver Training Program to ensure consistent quality across all locations. New franchisees receive comprehensive training that covers business operations, caregiver recruitment, and local marketing strategies. The franchisor also provides ongoing support, proprietary software for operations, and marketing tools to help franchisees establish and grow their businesses effectively. With its emphasis on training, technology, and a proven system, 1Heart offers a rewarding opportunity for franchisees passionate about senior care.

1Heart Franchise Insights

1. 1Heart is Founded in 2014, 1Heart has nearly a decade of experience in the senior care industry, providing a reliable and proven franchise model.
2. The franchise operates 25 locations in the U.S., including 22 franchised units and 3 corporate-owned units, demonstrating a steady growth trajectory.
3. 1Heart’s focus on personalized care has resulted in excellent client satisfaction and retention rates, contributing to stable and recurring revenue for franchisees.
4. By providing compassionate care, franchisees become trusted resources in their communities, helping seniors age in place comfortably and with dignity.

1Heart Franchise Key indicators

How much does it cost to open a 1Heart franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a 1Heart franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a 1Heart franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a 1Heart below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a 1Heart franchise, the required capital involves both the initial investment costs and a net worth requirement set by 1Heart. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $91,840 to $138,770. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Required Liquid Assets Typically, senior care franchises require liquid capital in the range of $50,000 to $75,000, ensuring the franchisee has sufficient cash flow for initial operations.
• Net Worth Requirement Franchisees are often expected to have a net worth of $150,000 to $250,000, depending on the market and the scale of the business.

How much does a 1Heart franchise owner make?

Calculating the salary of a 1Heart franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a 1Heart franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

1Heart Revenue & Gross Sales

1Heart Caregiver Services has shown strong recent revenue performance, with median gross sales reaching $575,020, according to the latest Franchise Disclosure Document (FDD). This impressive figure highlights the growing demand for in-home senior care and the effectiveness of 1Heart’s business model. By focusing on personalized non-medical caregiving and building long-term client relationships, the franchise provides a solid revenue foundation for its franchisees. These results reflect not only the franchise’s market potential but also its ability to support sustainable growth in a competitive industry.

Which key factors impact the average revenue performance of 1Heart franchisees?

The strong median gross sales performance of $575,020 for 1Heart franchisees can be attributed to several key factors. The growing senior population in the U.S., combined with an increasing preference for in-home care, has significantly driven demand for 1Heart’s non-medical caregiving services. The franchise’s emphasis on personalized care, including memory care and transitional support, appeals to families seeking tailored solutions for their loved ones. Additionally, 1Heart’s robust 7-Step Caregiver Training Program ensures high-quality service delivery, enhancing client satisfaction and retention. Franchisees also benefit from effective local marketing strategies and operational support, which enable them to attract and maintain a steady client base. These factors, along with the franchise’s ability to adapt to evolving market needs, have contributed to its consistent revenue growth.

1Heart Franchise Operational Costs

When opening a 1Heart Caregiver Services franchise, here are the key primary ongoing operational costs specific to the senior care business:

• Staff Wages The largest operational expense will be caregiver salaries, as recruiting, training, and retaining qualified caregivers is critical to the business.
• Recruitment and Training Ongoing costs for hiring and training new caregivers to meet demand and uphold the quality of service through 1Heart’s 7-Step Caregiver Training Program.
• Office Space and Utilities Leasing and maintaining a professional office space for administrative functions and caregiver coordination, along with associated utilities such as internet, electricity, and phone lines.
• Insurance General liability and workers’ compensation insurance to protect both the business and caregivers in a caregiving-focused industry.
• Marketing and Community Outreach Costs for local marketing campaigns, community events, and networking with referral sources, such as hospitals and senior living facilities, to attract new clients.
• Technology and Software Fees for proprietary software used for scheduling, client management, and payroll, which are essential for running day-to-day operations efficiently.
• Transportation and Mileage Reimbursement If caregivers travel to clients’ homes, transportation costs or reimbursements may be necessary, depending on the business model.

These costs are vital to running a successful senior care franchise and should be carefully considered when planning your budget.

1Heart Franchise Fees

Understanding the ongoing fees is crucial for managing the financial aspects of a 1Heart Caregiver Services franchise. Below are the primary fees you will encounter:

• Royalty Fee Franchisees pay 5% of gross revenue monthly, with an additional 5% on revenue generated from clients located outside their assigned territory, ensuring access to comprehensive franchisor support.
• Local Marketing Program (LMP) A 3% of gross revenue monthly fee is allocated for local advertising, promotions, and public relations campaigns. For franchisees generating over $30,000 in monthly revenue, part of this fee is earmarked for pay-per-click advertising.
• Brand Fund Contribution Franchisees contribute 2% of gross revenue monthly to support nationwide brand development and system-wide advertising initiatives.
• Potential Additional Fees Additional costs may arise for training, technology upgrades, or operational needs.

These fees ensure franchisees receive the tools and resources needed to grow their business while maintaining consistency with the 1Heart brand. Proper budgeting for these costs is essential for long-term success.

1Heart Franchise Earnings

Based on the most recent data, 1Heart Caregiver Services franchisees report median gross sales of $575,020, with owner-operator earnings estimated at $143,755. These figures reflect the strong revenue potential of the franchise, supported by the high demand for in-home senior care services and the franchise’s efficient operational model.

Owner-operator earnings are influenced by effective management practices, including staff recruitment, training, and client acquisition strategies. With a well-structured support system from the franchisor, including marketing assistance and operational tools, franchisees are equipped to maintain profitability while delivering high-quality care. Prospective franchisees should also account for ongoing expenses like caregiver wages, marketing, and local operational costs when evaluating their net income potential. These earnings figures make 1Heart a promising opportunity in the growing senior care industry.

How to Open a 1Heart Franchise

Becoming a 1Heart franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.

The full process for how to open a 1Heart franchise is outlined below:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Initial Interview and Discovery Call Participate in a discovery call or interview with the franchisor to discuss your goals, learn about the business model, and determine mutual compatibility.
3. Discovery Day Attend a Discovery Day at 1Heart’s headquarters or an operating location. This is an opportunity to meet the leadership team, ask in-depth questions, and gain hands-on insight into the franchise’s operations.
4. Financial Approval Demonstrate your financial qualifications, including meeting the liquid capital and net worth requirements, by providing proof of funds or securing financing if necessary.
5. Franchise Agreement Signing Once approved, sign the franchise agreement to officially secure your territory. At this stage, you’ll pay the franchise fee of $47,500 to finalize your commitment.
6. Training and Onboarding Complete 1Heart’s comprehensive training program, which includes caregiver recruitment, operational tools, marketing strategies, and the 7-Step Caregiver Training Program to maintain consistent service quality.
7. Site Selection and Setup Collaborate with the franchisor to select a suitable office location and set up your operational infrastructure, including proprietary software and local marketing materials.
8. Pre-Opening Marketing and Recruitment Launch pre-opening marketing campaigns to attract clients and recruit qualified caregivers. The franchisor provides support to ensure your business starts strong.
9. Grand Opening and Operations Begin Host a grand opening event to introduce your services to the community. From this point, you’ll begin operations, with ongoing support from the franchisor for day-to-day management, marketing, and training.

Pros & Cons

Pros

Strong Industry Demand: The senior care market is expanding rapidly, with over 10,000 individuals turning 65 daily in the U.S., driving consistent demand for in-home care services.

Affordable Entry Costs: With a total investment range of $91,840 to $138,770 and a franchise fee of $47,500, 1Heart offers a competitive entry point compared to similar franchises.

Recurring Revenue: The nature of senior care services fosters long-term relationships with clients, creating reliable recurring revenue streams for franchisees.

Cons

Operational Intensity: Success in senior care requires significant involvement in caregiver recruitment, training, and client management, which may be challenging for passive investors.

High Reliance on Caregivers: Maintaining service quality depends heavily on recruiting and retaining skilled caregivers, which can be challenging in competitive labor markets.

Territorial Constraints: Franchisees must adhere to assigned territories, potentially limiting expansion opportunities in high-demand areas.

Smaller Footprint: With only 25 locations in the U.S., 1Heart has a smaller network compared to larger senior care brands, which may limit its brand recognition in some markets.