Home Care Franchise vs. Starting Independent
A home care franchise costs a $40,000 to $60,000 fee plus 5% to 6% of revenue. Independent keeps every dollar but builds everything. How to decide.
By Caregiver Scheduling Team ·
A home care franchise sells you a brand, a playbook, training and often software for an initial fee, typically $40,000 to $60,000, plus royalties of about 5% to 6% of revenue and a marketing contribution. An independent agency keeps all its revenue but builds its own systems and reputation. Choose a franchise if you are new to the industry and want a playbook. Go independent if you have operations experience and local referral relationships.
What does a home care franchise cost?
Figures vary by brand, and the only binding numbers are in the current Franchise Disclosure Document. Two brands publish figures on their own sites.
| Cost | Senior Helpers (official site, 2026) | ComForCare (official site, 2026) | Typical range across brands |
|---|---|---|---|
| Initial franchise fee | $55,000 | Not stated | $40,000 to $60,000 |
| Total initial investment | $149,000 to $201,000 | “Starting at $103k” | $100,000 to $250,000 |
| Royalty | 5% of gross revenue | Not stated | 5% to 6% of gross revenue |
| Marketing fund | 1% of gross revenue | Not stated | 1% to 2% of gross revenue |
Sources: Senior Helpers franchise site and ComForCare franchising page. Right at Home’s franchise site lists a total initial investment of $94,330 to $176,239 and $150,000 minimum liquid capital (Right at Home). The “typical” column is our reading of the market, not a sourced figure. Confirm every number in Items 5, 6 and 7 of the FDD. The FTC notes that an initial fee “will typically range from tens of thousands of dollars to several hundred thousand dollars” and that “it may take more than a year to break even” (FTC). An independent agency pays for the same licensing, insurance, software and working capital without the fee. See startup costs.
What does the FDD tell you, and when must you get it?
You must receive the FDD at least 14 calendar days before you sign or pay anything (16 CFR 436.2). If the franchisor changes the agreement on its own initiative, you get the revision at least seven days before signing. The document has 23 items (16 CFR 436.5). Read these first:
- Item 3, Litigation. Whether the franchisor has sued its own franchisees in the past year.
- Items 5, 6 and 7. Initial fees, ongoing fees, and the estimated initial investment table.
- Item 19, Financial Performance Representations. The only place a franchisor may make earnings claims. If it is empty, nobody may quote you revenue figures.
- Item 20, Outlets. Openings, closings and transfers by state. Several closures near you is a warning.
Then call current and former franchisees from the Item 20 list, “rather than relying on information from the broker alone,” as the FTC puts it.
How does the royalty math work?
Royalties are charged on revenue, not profit, so a small percentage takes a large share of profit. Take an agency billing $1.5 million a year at a 10% net margin before franchise fees, using the 5% royalty and 1% marketing fund Senior Helpers publishes:
| Line | Independent | Franchise |
|---|---|---|
| Revenue | $1,500,000 | $1,500,000 |
| Royalty at 5% | $0 | $75,000 |
| Marketing fund at 1% | $0 | $15,000 |
| Net profit before franchise fees at 10% | $150,000 | $150,000 |
| Net profit after franchise fees | $150,000 | $60,000 |
The franchisee keeps 40% of the independent owner’s profit on the same revenue. That gap has to be earned back through faster growth or lower marketing spend. Run your numbers with profit margin and break-even.
What does an independent agency have to build itself?
| Area | Franchise | Independent |
|---|---|---|
| Brand | Established name and website | Built from scratch |
| Systems | Scheduling, billing and HR software, often required | Your choice, your cost |
| Training | Owner and caregiver training programs | Build or buy |
| Marketing | National campaigns, templates, lead programs | Local referral work |
| Territory | Defined, sometimes protected | Anywhere you are licensed |
| Control | Must follow franchise standards | Full |
| Exit | Resale subject to franchisor approval and transfer fee | Sell on your terms |
All of it can be built. The business plan template, policies and procedures manual and how to get clients cover the pieces.
When does each choice make sense?
Independent makes sense when you or a partner have run a home care or healthcare operation, you know the discharge planners and social workers in your area, and you want to set your own services, rates and software. A franchise makes sense when you are new to the industry, brand recognition matters in your market, and a peer network of owners is worth 6% of revenue to you. Either way, the license is yours, in your state, regardless of the brand on the door. See how to start a non-medical home care agency.
How Caregiver Scheduling handles this
Independent agencies get the operating system a franchise would provide, without the royalty: drag-and-drop scheduling, recurring visits, open-shift filling, route optimization, a caregiver app with geofenced GPS check-in, AI visit notes and authorized-hours tracking on Growth and up. Timesheets, QuickBooks export and private-pay invoices are coming soon. $199/month for up to 10 caregivers or $299/month for up to 50, free for 30 days.
FAQ
Are home care franchises profitable? Some are. Royalties on revenue tighten the margin, so check Item 19 and talk to current franchisees.
Can I leave a franchise later? Usually only at the end of the term or by selling to an approved buyer. Item 17 covers renewal, termination and transfer.
How long do I have to review the FDD? At least 14 calendar days before you sign or pay. Have a franchise attorney read it with you.
This article is general information, not legal or financial advice. Read the current FDD and check your state’s franchise and licensing rules.