Many people are investing in senior care franchises based on alleged profits but is it true you can earn millions? Technically yes, at 55 Million dollars a year the most profitable Senior Care franchise is more lucrative than even the most profitable McDonalds (10 Million) at a much lower investment ($150k vs 1.5m) But there is something that the franchise companies wont tell you. We look at senior care franchises and alternatives that might be a better choice today on Franchise City
55 million a year is good money. $150,000 investment is relatively low. Theoretically someone could put down $30,000, SBA finance the rest and buy this franchise. But should you?
Here is the mistake most people make, its why they lose their money, and its the problem when looking at only profit potential when choosing a franchise. Its like if you were an aspiring young athlete wondering which sport you should play. You do some research and see that NBA basketball players are the highest paid at $8 million a year average so you decide I’ll be a basketball player. Ridiculous right? But this is how many people buy a franchise, like it will run itself and the owner has nothing to do with it. You might be terrible at basketball and cant play professionally, but you might be great at Volleyball which pays less money but it is more than what you would make playing basketball.
A senior care franchise is a very relational business. It is not like a restaurant where people just walk in and buy. The owner has to get out into the community and speak with care facilities, with families, chamber of commerce, and others. Some senior care franchises will allow you to hire the sales role and you handle the office operations role, but don’t take that for granted. make sure you are comfortable and proficient at the role you are expected to fulfill.
Not everyone can run a senior care franchise and very few people can be the top superstar. You might be better off in another industry, some other franchise options in a moment, or not being a franchise owner at all. As brokers when we help buyers through the process we look closely at a persons skills, are they good managers, are they good relationship builders. Senior care requires a lot of social interaction, they generally aren’t looking for nursing experience. In addition to the owners abilities every market is unique. How is the staffing landscape? Market demand and market demographic. There are multiple considerations to look at to determine if you might have a shot at being a highly profitable superstar. Most people just jump in looking at the high numbers and just like the useless basketball player they fail and lose their money when they could have chosen a lower producing industry but been a superstar.
If you are a relationship builder, good at B2B sales, and your local market is a good match there are lots of very profitable options. Printing and signage continues to be profitable with many owners earning multi-millions. We covered that on the channel earlier – up to 20 million a year for top operators. Staffing is another industry that requires a very outgoing owner, and average earnings in one system, this is the average, is 6 million a year. A cleaning master franchise has top owners generating over 5 million and industries like disaster recovery have top owners making net 1.4 million. If you have an outgoing rainmaker personality many franchise opportunities exist.
If you are an introvert, not relational you need a franchise that has walk in traffic, or one where corporate generates leads and your employees can close them. So where customers come to you. This is not ideal if you have the B2B skills because you will be limited by walk in traffic. But a few options in this space are automotive, that includes oil change, aftermarket parts or repair. One franchise has an average net profit over $400k with an investment around $300k. That’s about 10X more profit than a popular food franchise with a lower investment.
Food franchises are another option where customers come to you but your investment is going to be higher. Fitness franchises can be profitable but some markets have become very competitive. Certain niche areas like martial arts or yoga that have less expenses on equipment can generate net of $200k or more investment all-in around $200k. Some cleaning franchises have in house marketing programs that generate customers some even close the deal over the phone and you just co-ordinate your cleaners to go to the jobs. Many cleaning franchises generate over a million dollars a year.
Put simply, the most profitable franchise will be the one that is the best suited to you abilities, your goals, your market demand and other unique variables. If you need help doing that contact franchise city broker group.