Senior Care Franchises: What is the Top in 2024?
There is a huge variety of senior care franchises available in the market today. In today’s article, we will compare those franchises by different metrics like payback period, the number of stores, etc.
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The state of the Senior Care Industry
The industry has been doing very well in recent years in response to the increasing number of senior citizens with the maturation of the baby boomer generation. As that population reaches age 65, the senior population is estimated to exceed 83 million, which is almost double the approximate number in 2012 and around 20% of the total US population. Almost 10,000 people on average will turn 65 every day for the next 20 years.
The senior care industry is growing to meet the demand. Starting in 2018, the American senior care business industry revenue has been growing at an annual rate of 3.3%, and it is expected to continue along this trajectory.
The current market size for the franchise sector of this business is around 11 billion, and it employs around 400,000 workers throughout around 11,000 businesses in the U.S. The entire senior care industry is estimated to be worth around 400 billion in the U.S. right now.
Senior Care: A growing business
With such a large (and constantly growing) market of seniors to tend to, franchises that center around senior services have been rapidly growing and expanding into different areas, such as transition services to keep up with the consumer demand. While there has always been a sufficient amount of senior care franchises, they have traditionally been predominantly focused on day-to-day assistance and companionship.
There has been a gap in outlets that assist seniors with more out-of-the-ordinary/ transitional tasks like moving, home and schedule organization, or the conductions of estate sales. In response to this demand and others, senior care franchises are constantly adapting to keep up with the consumers’ needs.
We will look at the top 10 in different categories, but first let’s tabulate the data from those franchises.
| Franchise | Franchise Unit Count | Midpoint Investment | Average Unit Volume | Payback Period |
|---|---|---|---|---|
| Home Instead | 609 | $116,500 | $2,229,000 | 2-4 years |
| Right at Home | 483 | $121,794 | $1,261,000 | 2-4 years |
| Interim HealthCare | 339 | $163,000 | $2,670,000 | 1.5-2.5 years |
| Synergy HomeCare | 364 | $92,094 | $1,519,000 | 2-4 years |
| Visiting Angels | 541 | $142,305 | $1,250,000 | 1.5-2.5 years |
| Senior Helpers | 319 | $122,600 | $1,230,000 | 2-4 years |
| BrighStar Care | 350 | $151,058 | $2,172,000 | 2-4 years |
| Touching Hearts at Home | 68 | $62,250 | $566,000 | 1.5-2.5 years |
| FirstLight HomeCare | 183 | $155,800 | $1,083,000 | 2.5-3.5 years |
| Assisting Hands Home Care | 151 | $123,675 | – | – |
The Industry is Booming
Demand for home care services is expected to grow significantly. In brands such as Home Helpers Home Care, we saw steady revenue growth in the system year over year since its inception in 1997.
The industry continues to be a cost-effective solution for seniors, who wish to age-in-place in their homes, while providing affordability to an ever increasingly costly health care system.
The senior care industry is a great business opportunity for those looking to own a business in an industry that is both financially rewarding and where they are making a real difference in the lives of seniors in their communities.
