From 2018 to 2060, the number of Americans aged 65 or older will double to 95 million. They will make up 23% of our population. So, it’s no wonder people are looking into the senior care services industry. According to a Franchise Business Review survey, the senior care services industry has the second-highest average pre-tax income of all industries.
There are several types of senior care service businesses. They include in-home medical and non-medical care, housing placement services, assisted living facilities, and senior mobility product businesses.
So, should you buy into an assisted living franchise? Weigh the pros and cons in our guide and find out what you can expect with this franchise opportunity.
Benefits of an Assisted Living Business
If you want to have a significant presence and impact in your community, an assisted living facility will put you on the map. They are extensive facilities that typically house dozens of older adults with various health conditions. They are also a great business venture for someone with lots of capital.
Assisted living facilities generally can be recession-resistant due to the large aging population and the many elderly individuals needing full-time care. As a result, facilities aren’t typically affected by the stock market or economic downturns. In addition, SAMO Financial notes that smaller facilities fared better than bigger facilities during the height of the COVID-19 pandemic because it was easier for them to manage the spread of the virus.
Another pro to owning an assisted living franchise is the low turnover rate of residents. Most seniors will live in these facilities for years. It’s also a less competitive market because of the expensive startup costs. But, there’s government aid available for some assisted living facilities, according to Profitable Venture Magazine. Running a larger facility for older people with deteriorating health conditions comes with high stress, but it can be highly gratifying for an owner. You’ll enjoy big life moments with your residents and their families.
Downfalls to Senior Living Facility Ownership
Despite those pros, there are many cons to opening a new assisted living facility. First, it is an expensive investment. Startup fees for an assisted living franchise can range from $2 million to $10 million. Then you’ll have ongoing operations costs like maintenance for the facility and utilities. Other expenses include disinfectant and cleaning products, protective gear, and cafeteria food. So, it’s essential to know whether your incoming revenue will cover all those expenses and provide you with an income that makes it all worth it.
Being an assisted living facility owner can be a high-stress position. You’re not only making sure you pay all bills, but you must also hire and pay staff and keep your residents and their families happy. Because of this, Assisted Living Directory finds that facility owners are often tired and overworked. You’re not guaranteed weekends or holidays off because if a problem arises in the facility, you’ll need to attend to it. That includes hours in the middle of the night.
It’s no secret that hiring is a struggle for American business owners these days. That’s no different for assisted living facilities. On top of that, you must develop ways to retain staff once you hire them.
Lastly, there are numerous hurdles involving licensing and certifications. All states have regulations for senior living facilities. Assisted living facilities must follow medical regulations because medical providers are on staff.
Consider an In-Home Care Franchise
While there are pros to owning an assisted living facility, there are many cons. Avoid those downfalls by opening an in-home care franchise like A Place At Home. You’ll still significantly impact your community and feel highly rewarded for your services. In addition, you’re still in a recession-resistant industry. In today’s world, seniors stay in their homes for as long as possible, leaving their families to rely on in-home care businesses for assistance. You’ll have long-term clients like an assisted living center if you provide excellent service.
In-home care franchises are significantly cheaper than investing in an assisted living facility franchise. Instead of needing millions of dollars to open a center, you will likely need less than $200,000 for the initial investment. In addition, ongoing costs are comparatively minimal because you can run your business out of your home, minimizing those operation and utility costs.
Provide Better Care with A Place At Home
You don’t provide medical care at A Place At Home, so there’s no hassle with medical certifications or licenses. Your revenue stream doesn’t have to stop at the in-home care services as a franchisee for A Place At Home. We offer complete care for our seniors and their families, including care coordination between medical and non-medical providers, senior living alternatives, and staffing solutions for assisted living facilities and other centers. Ready to build a business with our senior-focused care model and invest in the booming senior care industry? Submit a franchise form today.