How much does it cost to start a homecare franchise?
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The cost of starting a homecare franchise in the UK can vary significantly depending on several factors such as the franchise brand, the location, size of the territory, level of support provided by the franchisor, and various other operational expenses.
However, to give you a rough estimate, the initial investment for a homecare franchise in the UK can range from £30,000 to £150,000 or more. For example: The initial joining fee for GoodOaks franchise is £19.5k with a working capital requirement of circa £50,000.
This investment typically includes franchise fees, training costs, marketing support, business planning support and other set up costs. The specific fee will vary from franchise to franchise and each depending on their size and specific offering. It’s essential that you do your research, thoroughly looking at what different sector franchisors are offering and the varied opportunities available. You’ll need to understand the total investment required, and carefully review the franchise agreement documents provided by the franchisor to get a clear picture of the costs involved. Additionally, consider consulting with financial advisors or franchise experts to assess the financial feasibility of starting a homecare franchise in the UK.
There are many factors to explore beforehand to ensure that your decision making is informed and expectations are discussed in full.
What operational costs do I need to consider when starting a homecare franchise?
There are other costs that you should take into consideration:
- The cost of renting office space varies depending on where you’re located. Also factor in utility bills and service fees that come along with that. For example, the average rental cost for office space in the UK is around £35 per square foot per year
- As your care professionals will be travelling to and from clients homes, think about mileage and what you will set as reimbursement for them. At GoodOaks we reimburse our care professionals 45p per mile.
- Insurance is also another cost factor, to run a care business you need the correct type of comprehensive insurance in place including; Professional Indemnity starting at £340 and Public liability & employers’ liability starting at £310 but again this depends on a number of factors and what amenities the space has to offer. It’s imperative that you have these insurances in place to be approved by CQC. It may also be worth looking at a cyber insurance policy to protect sensitive client information
- Other elements such as Software platforms, admin costs, recruitment and training should also be taken into account.
It is also a good idea to have provision for miscellaneous expenses like DBS checks, staff uniforms as well as enough Working Capital. Your Working Capital sits in your bank account and is your buffer during the period where your income hasn’t caught up with your overheads. During the first 2-3 years you’ll need to pay extra attention to your cash flow to balance and accommodate your growth, as it can be a challenge to catch up with yourself in periods of high growth. This will fluctuate at times and having that extra capital available will allow for any lags and alleviate shortages of cash.
Are there any variable costs that could affect the start up expenses of my homecare business?
Looking at whether to go Franchise vs Independent is a really important decision as it can impact your expenses compared to starting an independent business. There are many benefits to choosing a franchise but this is why you should spend time doing your research on both. Economic factors could play a part in variable costs with inflation rates and the cost of goods and services fluctuating. Look at the competition in your local area too, this may influence your marketing planning, spend and pricing. Where you open your franchise may also vary your costs. Opening a homecare business in an urban area or large city may come with higher costs for office space, increased salaries and utilities, compared to quieter, more rural areas.
What do we offer at GoodOaks and why should you choose us?
Founded by two ex-care professionals means that not only do we have intricate knowledge of the sector, but we really understand the process of care and the positive impact it has in people’s lives. We have spent years honing in on improving our processes and building our brand. By buying into an existing brand that you believe in and reflects your values, this helps reassure your prospective clients and care professionals that they are joining a reputable, quality outfit, from Day 1.
At GoodOaks, we provide a comprehensive and extremely competitive franchise package. This includes business planning support, bespoke training, marketing and recruitment toolkits and more. Initial owner training sets our franchise partners up for success, and ongoing training keeps them appraised with updates, refreshers and inspiration for future success and growth.
The initial joining fee of £19.5k is met with a typical net profit of 15% once established, and a 40% gross profit model.
Our franchise partners share our values of professionalism, respect, integrity, dedication and empathy. We are passionate about providing quality care and our mission has remained the same since the very beginning: “to be the go-to provider of quality care at home by valuing, developing and rewarding the caring people who work with us”.
Homecare has proven to be a recession proof sector and there is a clear need for more care provision across the country. One in five men and women aged between 75 and 84 years have at least some problems washing or dressing. This rises to 34% of men and 42% of women at 85 years and over – and the size of this group is set to treble by 2066.
[Source: Population estimates, Principal population projections, 2016-based, ONS | Graph Source: NHS England and Ipsos MORI, GP Patient Survey]
Contact us today to find out more about our compelling franchising opportunities.
