How Much Does a Home Care Franchise Cost? A Complete Breakdown
What goes into the cost of a home care franchise: the franchise fee, startup costs, working capital, royalties, and how to read Item 7 of the FDD.
“How much does it cost?” is usually the first question prospective franchise owners ask, and it should be. This guide explains every major cost component of a home care franchise, the ongoing fees, and how to find exact figures for any brand you’re considering.
Where to find exact numbers: Every franchisor is required to disclose its fees and estimated initial investment in its Franchise Disclosure Document (FDD). For All Hours Home Healthcare figures, visit our investment page or request our franchise information.
Why home care is a relatively lean franchise
Compared with restaurants, fitness studios, or retail concepts, non-medical home care has no kitchen equipment, inventory, or expensive build-out. Care is delivered in clients’ homes, so your physical footprint is usually a modest office. Most of the investment goes toward people, licensing, marketing, and working capital rather than real estate and equipment.
The initial franchise fee
The initial franchise fee is a one-time payment for the right to operate under the brand in a defined territory. It typically covers:
- License to use the brand name, trademarks, and systems
- Your protected territory
- Initial training for you and key staff
- Access to the operations manual and proprietary tools
- Pre-opening guidance and launch support
Many franchisors offer discounts for veterans or for owners who buy multiple territories. Ask about them.
Startup costs (Item 7 of the FDD)
Item 7 of the FDD lists the estimated initial investment, shown as a low-to-high range for each category. For a home care franchise, expect line items such as:
| Category | What it covers |
|---|---|
| Initial franchise fee | Brand rights, territory, training |
| Office lease & deposits | First months’ rent and security deposit for a small office |
| Furniture, computers & phones | Basic office setup |
| Software & technology | Scheduling, EVV, payroll, and billing platforms |
| Licensing & permits | State home care license fees, business registrations |
| Insurance | Liability, workers’ compensation, bonding, non-owned auto |
| Professional fees | Attorney and accountant review |
| Grand opening marketing | Launch campaign, print materials, digital advertising |
| Training travel | Travel and lodging for initial training |
| Additional funds | Working capital for the first several months |
Don’t underestimate working capital
The “additional funds” line is the one new owners most often underestimate. Home care payroll is weekly or biweekly, but client payments, especially from long-term care insurance or government programs, can take weeks to arrive. You also need to pay your office staff and fund marketing while your client base grows. A conservative working capital reserve is one of the strongest predictors of a smooth launch.
Ongoing fees
Once you’re open, expect recurring fees such as:
- Royalty: usually a percentage of gross revenue, paid weekly or monthly, for ongoing support and use of the brand
- Brand or marketing fund: a smaller percentage that funds system-wide advertising and brand development
- Technology fees: for software licenses provided through the franchisor
- Local marketing requirement: a minimum amount you agree to spend promoting your own territory
All ongoing fees are listed in Item 6 of the FDD.
Financial qualifications
Franchisors usually set minimum liquid capital (cash or easily accessible assets) and net worth requirements. These protect you as much as the brand. They help ensure you have enough runway to reach profitability without undue stress.
Some brands also set professional qualifications. All Hours Home Healthcare franchises, for example, are awarded only to licensed healthcare providers.
How owners finance a home care franchise
Common funding approaches include:
- SBA loans, often the 7(a) program, with a down payment from personal funds
- Rollovers as Business Startups (ROBS), which let you use eligible retirement funds without early-withdrawal penalties when structured correctly
- Home equity or personal lines of credit
- Partners or investors
Talk to a qualified financial advisor before choosing a structure.
How to evaluate total cost versus value
The cheapest franchise isn’t automatically the best investment. When comparing brands, look at:
- What the fee includes: training depth, launch support, technology, and ongoing coaching
- Item 19 (Financial Performance Representations), if provided, to understand how existing units perform
- Item 20 (Outlets), to see growth, transfers, and closures over time
- Conversations with current owners, which are the most honest source of information you’ll find
Read more in our guide: How to Read a Franchise Disclosure Document.
Get the All Hours numbers
See the All Hours Home Healthcare investment overview, then request franchise information to receive current figures for your market and talk with our development team.