Home health care franchise thoughts

[esco]

..after some research I'm looking at a home care franchise, as it's significantly less of an outlay then buying a care home. Due to some of the 'better' territories being taken with the big boys I'm looking at a relatively new (3-4 years exp franchising) company called Clarriots Care.

There are quite a few home care companies but in a growing market I'm still quite optimistic it could be a success.

Does anyone have much experience/thoughts in this sector?

 

[ethical PR]

Why are you optimistic that it could be a success?
Do you have experience of running a homecare service?
What exactly is this franchise offering, that you can't do yourself?
What sort of net profit margins are you likely to make after franchise costs and running costs?
Have you done market research in the area you are considering to look at what your competition is doing?
What happened to your function room and car park business?

 

[esco]

Why are you optimistic that it could be a success?

Because demand will be growing (with medical care these days people will be living longer), if not me someone else will be getting more patients.

Do you have experience of running a homecare service?

No. But the franchise company has?

What exactly is this franchise offering, that you can't do yourself?

I have experience running a company but not in the care sector. So again, I can leverage their knowledge.

What sort of net profit margins are you likely to make after franchise costs and running costs?

They have 18 different sectors of care to focus on with varying profit margins. Looking at about 10-15% net

Have you done market research in the area you are considering to look at what your competition is doing?

There are some competitors in the area. A fair few different franchises. About 3 others. It's still early days and I haven't gone too in depth with this at the moment. There is circa 110k residents 60yrs+ in my territory, with about 24k in bad health and 8k being in very bad health according to council market research. It's an affluent area so looking at mainly private clients.

 

[esco]

Why are you optimistic that it could be a success?

Because demand will be growing (with medical care these days people will be living longer), if not me someone else will be getting more patients.

Do you have experience of running a homecare service?

No. But the franchise company has?

What exactly is this franchise offering, that you can't do yourself?

I have experience running a company but not in the care sector. So again, I can leverage their knowledge.

What sort of net profit margins are you likely to make after franchise costs and running costs?

They have 18 different sectors of care to focus on with varying profit margins. Looking at about 10-15% net

Have you done market research in the area you are considering to look at what your competition is doing?

There are some competitors in the area. A fair few different franchises. About 3 others. It's still early days and I haven't gone too in depth with this at the moment. There is circa 110k residents 60yrs+ in my territory, with about 24k in bad health and 8k being in very bad health according to council market research. It's an affluent area so looking at mainly private clients.

 

[Mitch3473]

And here's me thinking people went into Care Homes because they cared about people..

 

[ethical PR]

Why are you optimistic that it could be a success?

Because demand will be growing (with medical care these days people will be living longer), if not me someone else will be getting more patients.

Do you have experience of running a homecare service?

No. But the franchise company has?

What exactly is this franchise offering, that you can't do yourself?

I have experience running a company but not in the care sector. So again, I can leverage their knowledge.

What sort of net profit margins are you likely to make after franchise costs and running costs?

They have 18 different sectors of care to focus on with varying profit margins. Looking at about 10-15% net

Have you done market research in the area you are considering to look at what your competition is doing?

There are some competitors in the area. A fair few different franchises. About 3 others. It's still early days and I haven't gone too in depth with this at the moment. There is circa 110k residents 60yrs+ in my territory, with about 24k in bad health and 8k being in very bad health according to council market research. It's an affluent area so looking at mainly private clients.

It's notoriously difficult to make money in the adult social care sector when it comes to home care and residential care. Even more so when you are paying a franchise before you can make a profit.

Remember one of the key issues in the sector is recruiting and retaining great staff.

Surely the net profit would be dependent on how you run your business and your operating costs/charging model?

What your market research needs to uncover is how many older people/people with disabilities use homecare - many of those you identified maybe receiving care from a relative or carer, or be in residential care.

Good luck