FirstLight Home Care Franchise in 2024: Costs, Fee & FDD
Explore the FirstLight Home Care franchise opportunity—an industry leader in home care with a proven business model and strong franchise support. Discover if this recession-resilient investment fits your goals!
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Founded in 2010 by industry veterans Jeff Bevis and Devin Bevis, FirstLight Home Care has quickly become a standout name in the home and senior care franchise sector. With a mission to enrich lives and foster a culture of care, FirstLight emphasizes not only exceptional service for clients but also deep support for franchisees and caregivers. Their dedication to connection and community resonates strongly in an industry where trust and reliability are paramount.
FirstLight offers a comprehensive range of non-medical home care services, catering to seniors, individuals with disabilities, veterans, and those recovering from surgery or illness. Services include companion care, personal care, respite care for families, and specialized dementia and Alzheimer’s care. Their core market includes families seeking compassionate, reliable care for loved ones who wish to maintain independence at home. Ancillary services, such as assistance with errands or light housekeeping, make FirstLight a versatile and invaluable resource for families.
With nearly 200 locations across the United States, FirstLight serves thousands of clients daily, positioning itself as a leader in the $400 billion home care industry. Their extensive experience—combining over 100 years of caregiving expertise and 200 years in franchising—has cemented their reputation as a trusted and innovative brand. This broad reach ensures that franchisees benefit from established operational systems and a strong market presence.
FirstLight sets itself apart with a robust franchise support system designed to ensure success. Each franchisee is paired with a Launch Specialist for personalized guidance in setting up the business and a Licensure Specialist to expedite licensing processes. Training combines online and in-person sessions, hands-on learning, and ongoing virtual support. Franchisees also benefit from on-site visits and a dedicated leadership team committed to long-term success. The support doesn’t stop post-launch; continuous education and resources ensure owners stay at the forefront of industry trends.
FirstLight Home Care Franchise Insights
- FirstLight Home Care operates in the $400 billion home care industry, a rapidly growing sector driven by an aging population and increasing demand for in-home care solutions.
- The brand boasts over 100 years of caregiving expertise and 200 years of franchising experience, providing franchisees with a foundation of proven success and innovation.
- With nearly 200 locations across the United States, FirstLight Home Care offers a well-established brand presence and operational model.
- The franchise’s unique “Culture of Care” philosophy creates a supportive environment for caregivers, clients, and franchisees alike, fostering trust and long-term relationships.
- The demand for home care services is expected to grow by over 40% by 2030, making this a forward-thinking investment in a booming market.
FirstLight Home Care Franchise Key indicators
Growth YOY (%)
5%
vs industry 9%
Total U.S. Franchised Units
203
3-Year Failure Rate
13%
vs industry 8%
Sales-to-Investment ratio
8.1:1
How much does it cost to open a FirstLight Home Care franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a FirstLight Home Care 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 FirstLight Home Care 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 FirstLight Home Care below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Training Fee | $5,000 | $5,000 |
| Travel and Training Expenses | $2,050 | $3,550 |
| Business Premises | $0 | $3,300 |
| Start-Up Supplies and Inventory | $300 | $900 |
| Employment Screening | $275 | $360 |
| Equipment, Signage, Graphics | $250 | $2,450 |
| Marketing, Advertising and Promotions | $4,500 | $4,500 |
| Grand Opening Marketing | $10,000 | $10,000 |
| Other Paid Expenses | $5,300 | $7,600 |
| Business Permits, Licenses and Fees | $0 | $5,000 |
| Insurance as required under Section 7.16 of the Franchise Agreement | $7,500 | $18,000 |
| Computer Equipment | $2,500 | $4,000 |
| Additional Funds: 3 to 6 Months | $38,000 | $85,000 |
| TOTALS | $125,675 | $199,660 |
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 FirstLight Home Care franchise or a similar one in the home care industry, you’ll need to meet specific financial requirements. Here’s a detailed breakdown:
- Total Investment Ranges from $126,000 to $200,000. This estimate includes everything needed to start the franchise, such as training, equipment, marketing materials, and initial operational costs. 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.
- Liquid Capital At least $150,000. This is the minimum amount of readily available cash or assets that can be quickly converted to cash, required to cover initial expenses and operational costs.
- Net Worth A minimum of $250,000. This includes your total assets minus liabilities, ensuring financial stability for the business’s initial and ongoing operations.
How much does a FirstLight Home Care franchise owner make?
Calculating the salary of a FirstLight Home Care 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 FirstLight Home Care 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.
FirstLight Home Care Revenue & Gross Sales
FirstLight Home Care’s recent financial performance demonstrates strong potential in the home care industry. The franchise reported a median gross sales of $1,095,067, showcasing the solid earning capacity for its locations. While individual results may vary, this benchmark highlights the opportunities for growth and profitability within the system
Which key factors impact the average revenue performance of FirstLight Home Care franchisees?
The strong median gross sales performance of FirstLight Home Care franchisees likely stems from several key factors. First, the growing demand for home care services, driven by an aging population and a shift toward in-home healthcare solutions, creates a solid market foundation. Second, FirstLight’s comprehensive training and support system equips franchisees to deliver high-quality care, fostering client trust and repeat business. Additionally, the brand’s commitment to innovative tools, such as caregiver management systems, ensures operational efficiency and scalability. Lastly, the emphasis on building a strong caregiver culture helps maintain service excellence, enhancing client satisfaction and retention. These elements combined contribute to the robust financial outcomes of franchisees.
FirstLight Home Care Franchise Operational Costs
Opening a FirstLight Home Care franchise comes with ongoing operational costs tailored to the home care industry. Here’s an overview of the primary expenses you should plan for:
- Caregiver Wages and Benefits Salaries, health insurance, and other benefits for caregivers, who are the backbone of the business.
- Recruitment and Training Costs associated with hiring qualified caregivers and providing ongoing training to maintain service standards.
- Technology and Software Expenses for scheduling, caregiver management systems, and telehealth tools to streamline operations.
- Insurance General liability, workers’ compensation, and professional liability coverage tailored to home care businesses.
- Office Space and Utilities Rent and utilities for the administrative office managing operations and client relations.
Understanding and planning for these costs will help ensure the long-term success and profitability of your franchise.
FirstLight Home Care Franchise Fees
When considering the costs involved in operating a FirstLight Home Care franchise, it’s important to account for several ongoing fees that contribute to the success of the franchise network.
- Royalty Fee Initially set at 5% of Gross Revenues during the first three months of operation. After that, you will continue to pay 5% of Gross Revenues, or a royalty based on the Minimum Performance Standard Gross Revenue amount, whichever is greater. This structure ensures that franchisees are aligned with the company’s performance goals from the start.
- Payment to National Advertising Fund The fee is the greater of 1% of Gross Revenues or 1% of the Minimum Performance Standard. This fee supports national marketing initiatives, helping increase brand visibility. The contribution may increase in the future but will not exceed 2% of Gross Revenues.
- Additional Fees There are additional costs for specialized training programs, technology systems, and other tools provided by FirstLight Home Care.
These fees are designed to support both the operational needs of your franchise and the overarching goals of the FirstLight Home Care network. It’s important to carefully evaluate these ongoing costs to understand their impact on your business and to plan accordingly for long-term success.
FirstLight Home Care Franchise Earnings
The earnings of a FirstLight Home Care franchise owner can vary based on factors like location, sales volume, and cost management. However, with the median gross sales of around $1,095,067, an owner-operator can expect significant profitability. For those actively involved in day-to-day operations, estimated earnings are approximately $274,000, which reflects an operating profit margin of 25%. This substantial earning potential underscores the rewards of hands-on management and efficient business practices.
Active involvement in operations enables franchisees to maximize profitability, offering a promising return on investment. These figures demonstrate the potential for success, especially for those who are fully committed to managing the franchise directly and maintaining high standards of care for their clients.
How to Open a FirstLight Home Care Franchise
Becoming a franchisee with FirstLight Home Care involves a well-defined process to ensure that you’re fully prepared for the responsibilities and potential of owning a home care business. This process is structured to guide you through each step, from initial inquiry to starting operations. Here’s an overview of the process involved:
- 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).
- Discovery Day After reviewing the FDD, you’ll be invited to attend a Discovery Day, where you meet with the FirstLight team. During this day, you’ll learn more about the company culture, operations, and what to expect as a franchisee.
- Franchise Agreement If you decide to move forward, you’ll sign the Franchise Agreement, which formalizes your commitment to the brand and its systems.
- Training and Setup FirstLight Home Care provides comprehensive training, including both online and in-person sessions. You’ll also receive support in setting up your business and obtaining necessary licenses.
- Launch Once you complete your training and setup, you’ll officially open your business and begin operations. Ongoing support ensures that you can smoothly transition into running your franchise.
Pros & Cons
Pros
Strong Market Demand: The senior care industry is rapidly growing, driven by an aging population. This trend creates a steady demand for services, making the home care business a stable and profitable opportunity.
Proven Business Model: With nearly 200 locations across the U.S., FirstLight has a proven system that offers franchisees a clear path to success. Their median gross sales of over $1 million indicate that franchisees in well-managed locations can achieve substantial earnings.
Recession-Resilient Industry: The healthcare and senior care industries are generally recession-resistant, as people require care regardless of economic conditions. This can provide stability during uncertain economic times.
Cons
Operational Complexity: Home care franchises require significant operational oversight, including hiring and training caregivers, managing client relationships, and complying with local regulations. These responsibilities can be more demanding than those of some other franchise types.
Location Dependency: The franchise’s success is often tied to location. Certain markets may be more saturated with competitors, which could impact your ability to grow your business as quickly as desired.
Intense Competition: As the demand for home care services increases, competition also intensifies. New franchisees may find it challenging to stand out in crowded markets unless they effectively differentiate themselves or leverage the FirstLight brand.
