In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Home Instead Senior Care franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Home Instead Senior Care franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Home Instead Senior Care franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned Home Instead Senior Care outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Home Instead Senior Care’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- number and percentage of Home Instead Senior Care U.S. Franchised Businesses in operation as of December 31, 2019 that achieved 2019 gross sales of $4,500,000+; $4,000,000 to $4,499,999; $3,500,000 to $3,999,999; $3,000,000 to $3,499,999; $2,500,000 to $2,999,999; $2,100,000 to $2,499,999; $1,900,000 to $2,099,999; $1,700,000 to $1,899,999; $1,500,000 to $1,699,999; $1,300,000 to $1,499,999; $1,100,000 to $1,299,999; $900,000 to $1,099,999; $700,000 to $899,999; $500,000 to $699,999; and $0 to $499,999
- 2019 average, median, high, and low gross sales for the 599 Home Instead Senior Care U.S. Franchised Businesses in operation during the entire calendar year ending December 31, 2019
Section I – Background Information
18 Things You Need to Know About the Home Instead Senior Care Franchise
Partners with NLN Foundation to Promote Geriatric Education
1. In early May 2020, Home Instead Senior Care and the National League for Nursing Foundation for Nursing Education (NLNFNE) partnered once again to support geriatric education through a $10,000 scholarship fund for nursing students. The fund will address the growing need for enhanced geriatric education in nursing programs across the nation. At least six scholarships will be awarded to help prepare the ever-growing workforce of nurses with competencies to deliver the best care for aging adults.
2. As recent events have further showcased, the nation’s nurses are an integral part of our healthcare system’s ability to provide high-quality care to all, especially vulnerable populations. This unmatched dedication both in times of crisis and the routine day-to-day, will be key to meeting the unique needs of older adults in the coming years.
3. While the world’s population of adults age 65 and older is expected to continue growing at a rapid pace, there is an understanding within the healthcare industry that these seniors will have a significant impact on the system’s core business, especially regarding long-term care. Therefore, it’s in the best interest of older patients, the healthcare system, and taxpayers to ensure nurses are well-prepared to care for the aging population.
4. According to Dr. Cole Edmonson, chair of the NLN Foundation, “Older adults rely the most on the U.S. health care system and their needs are often complex. Through the continued partnership of the NLN Foundation for Nursing Education with Home Instead, we have helped over a dozen nursing students fulfill their academic goals and become emerging leaders in geriatrics. As the voice for all levels of nursing education, the NLN Foundation and the National League for Nursing are proud to help nursing programs to graduate competent nurses to serve at the front lines of public health.”
5. Jeff Huber, CEO of Home Instead, added, “Everything we do at Home Instead is driven by our mission to enhance the lives of aging adults and their families. Through our work with the NLN Foundation, we have a real opportunity to build a strong and diverse nursing workforce dedicated to providing the best quality care for older adults.”
Predicts Strong Future for In-Home Care
6. At the end of February 2020, Home Instead Senior Care said that it was witnessing an explosive demand for home care services as more and more baby boomers are looking to live at home as they age. A study issued by the Home Care Association of America and the Global Coalition on Aging reports that nine out of 10 Americans ages 65 and older want to stay in their homes for as long as possible.
7. The fast-growing wave of older Americans is expected to outnumber children by 2034, according to the latest figures from the U.S. Census Bureau. In 2030, when all baby boomers will be at least 65, older Americans will make up 21% of the population, an increase from the 15% today. By 2060, nearly one in four Americans will be 65 years or older, the number of seniors over 85 will triple, and the country will have a half-million centenarians.
8. In the face of this growing population of older adults, forecasts are that there will soon be fewer trained personnel available to care for this expanding senior population. Studies by Mercer, a global healthcare consulting firm, indicate that by 2025, U.S. healthcare providers will face a collective shortage of nearly 500,000 home health aides, 100,000 nursing assistants, and 30,000 nurse practitioners.
9. Jeff Huber, CEO of Home Instead, Inc., said, “As more and more people live into their 70s, 80s and 90s, we need to create care models that meet the needs of the growing senior population. By helping older adults age safely at home, we can promote a more healthy, engaged and active lifestyle while also reducing the burden on health systems amid rising patient volume and smaller staff. Through our 25 years of experience serving seniors around the world, we know they overwhelmingly want to remain independent in their own homes and appreciate the high-quality services Home Instead CAREGivers provide to make that possible.”
10. As demand for in-home senior care continues to rise, Home Instead Senior Care is expanding its network to bring personalized support services closer to communities with growing senior populations. In fact, 15 new Home Instead franchises opened within the last 12 months, and there are currently franchise opportunities available across the U.S. and Canada, including markets such as Las Vegas, Nevada; Irvine, California; Houston, Texas; and the Greater Toronto Area.
Recognized by Alzheimer’s Association Curriculum Review
11. In mid-November 2020, Home Instead Senior Care announced that its newest memory care training program is now recognized by the Alzheimer’s Association for successfully completing curriculum review and incorporating its evidence-based Dementia Care Practice Recommendations in the following topic areas: Alzheimer’s and dementia, person-centered care, assessment and care planning, activities of daily living, and behaviors and communication.
12. The newest Home Instead training program is based on research, Alzheimer’s experts, and experience and equips Home Instead CAREGivers to provide care with a person-centered approach. This individualized program focuses on the dignity of the person with dementia, rather than the diagnosis and symptoms of the disease.
13. According to Lakelyn Hogan, Home Instead gerontologist and caregiver advocate, “Home Instead has long recognized the importance of training CAREGivers to meet the complex needs of individuals living with Alzheimer’s disease and other dementias. Clients respond remarkably well to the techniques our CAREGivers use. What’s more, the training empowers CAREGivers to be more comfortable and effective in their work.”
14. Beth Kallmyer, vice president of care and support at the Alzheimer’s Association, said, “The Alzheimer’s Association is pleased that Home Instead is aligning its training program with our Dementia Care Practice Recommendations. These evidence-based recommendations lead the transformation of quality care with a person-centered focus at its core. By taking this step, Home Instead has demonstrated their commitment to providing training that is based on evidence.”
15. High-quality dementia care training can lead to improvement in communication between caregivers and people living with dementia, a reduction in dementia-related behaviors, and an increase in job satisfaction and staff retention. In addition to completing the new training program, Home Instead encourages its franchises to offer CAREGivers the opportunity to earn certification through the Alzheimer’s Association’s essentiALZ certification exam. Professional care workers who pass the exam are certified in essentiALZ for two years.
16. Home Instead Senior Care was founded in 1994 by Paul Hogan and his wife Lori in Omaha, Nebraska. The Hogans started their own senior care company after experiencing how difficult it was for their entire family to care for Paul’s grandmother, who lived till the age of 100. They wondered how other families with fewer family members and resources were caring for their senior relatives and wanted to find a better way for seniors to receive adequate care.
17. The Hogans began serving families in the Omaha area, but they realized that there were even more people that needed the help that Home Instead provided. In 1995, the Hogans began franchising the Home Instead concept. Today, Home Instead Senior Care has grown into one of the largest providers of home care services for the elderly, with locations across 14 countries on four continents.
Entrepreneur’s Franchise 500
18. Home Instead Senior Care ranked No. 156 on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Home Instead Senior Care franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Home Instead Senior Care’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 592
- Outlets at the End of the Year: 598
- Net Change: +6
- Outlets at the Start of the Year: 598
- Outlets at the End of the Year: 604
- Net Change: +6
- Outlets at the Start of the Year: 604
- Outlets at the End of the Year: 609
- Net Change: +5
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 5
- Net Change: 0
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 3
- Net Change: -2
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 2
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- For purposes of this Item 19, “Gross Sales” means the aggregate amount of all sales of all services and products, and other goods and services, whether for cash, on credit or otherwise, made or provided at or in connection with the Franchised Business, including all charges for services performed.
- Gross Sales does not include: (1) any federal, state, municipal or other sales, value added or retailer’s excise taxes you pay or accrue; or (2) adjustments for net returns on salable goods and discounts allowed to customers on sales.
Part 1 – Gross Sales Data by Years in Business
- The Gross Sales data in the table below is based upon information reported to Home Instead by 608 Home Instead Senior Care U.S. Franchised Businesses in operation as of December 31, 2019 on an individual per franchise basis.
- The Gross Sales data does not include 2 Home Instead Senior Care businesses operated by Home Instead’s affiliates for all of 2019 or 1 Home Instead Senior Care business sold to a franchisee during 2019.
2019 Total Revenue
0-1 Years in Business as of December 31, 2019