November 29, 2024 • 12 mins
Is There Really a Franchise You Can Own for $5K initial fee?
Join us as we journey through the realm of home healthcare and senior care franchises, spotlighting the innovative approaches of HomeWell Care Services. Discover how this franchise offers a unique $5k initial franchise fee option, allowing budding entrepreneurs to channel more resources into working capital while still benefiting from an industry with immense potential and low entry costs.
We discuss why some may prefer to invest upfront whereas others might opt to grow with higher royalties until certain revenue milestones are achieved. This episode is perfect for those aspiring to blend financial independence with meaningful personal experiences while providing essential services to the aging population. Whether you're considering a new venture or simply curious about the franchising world, this episode promises to expand your understanding of the opportunities available in the home care franchising sector.
Text: 305-710-0050
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hi everyone, welcome to the Inside Scoop Franchise
Podcast.
I'm Jack Johnson here, yourhost, back with you.
Hope everyone had a terrificThanksgiving.
Hopefully everyone had lots ofgreat food and time with friends
and family.
I broke a personal record byeating two complete Thanksgiving
meals yesterday, one at threeand one at seven.
(00:21):
Never thought I'd do that.
Anyways, glad to be back withyou after a great time with
friends and family.
That, ultimately, you guys, isthe most important part.
That's when we think about this.
Why are we interested inbusiness ownership?
Why are we interested infranchising?
It's because we want morequality time, right, we want to
be able to spend more time withthe ones that we love.
(00:43):
We want the means to travel anddo things with them and create
those great moments.
I heard an interesting thingyesterday on a podcast I was
listening to.
I think it was on the PeterAttia podcast and he asked a
question.
He said okay, let's imagineright now you could trade places
with Warren Buffett, who is90-some years old and has
(01:04):
billions of dollars.
Right?
Would you do it?
Would you trade right now forall his money or would you stay
where you are?
Let's even say it like thisWould you rather be a penniless
20-year-old or Warren Buffett at90 with the billions.
I thought it was a reallyinteresting question.
What would you choose?
It leads back to we'reinterested in time, we're
(01:28):
interested in experiences andthat's why we're looking to make
these changes and so kind ofgoing along that path.
There's an interesting trendthat's happened in our business.
Over the past month.
We've placed four differentclients into home health care
senior care franchises.
These are the types ofbusinesses where you're
(01:52):
essentially you own a staffingagency, right, you are hiring
what we call caregivers and infact, there's actually one of
these franchises that we placeda client in.
The caregivers are not youremployees.
You're essentially a matchingservice, but for the most part,
what you're doing is you'repairing caregivers who are
nursing assistants and homehealth aides into the homes of
(02:12):
clients who are typically olderand more frail and who don't
want to go to a facility.
And these businessestraditionally, as you've heard
me talk about on previouspodcasts, have outstanding
revenue numbers, some of thebest in franchising, and they're
some of the lowest costfranchises that are out there.
So take, for example, thefranchise I want to talk to you
(02:33):
guys about today, which isHomewell Care Services.
Their franchise fee is $4,900,but HomeWell has a very
interesting zero initialfranchise fee option.
You can start your HomeWellcare services agency with no
initial franchise fee and optfor just the initial training
(02:55):
fee of $5,000 at signing and a10% ongoing royalty rate until
reaching a predetermined amountof revenue, which in this case
is you pay 10% royalties on or aminimum royalty fee, whichever
is greater, for the first $1.5million of gross revenue
(03:16):
generated by your first HomeWellbusiness.
That's pretty freaking coolguys.
So let's just say you want toput less money down on the
franchise fee and more intoworking capital fee.
That's really an interestingway to get started in a very
(03:36):
high potential business, highneed for a very small amount of
money.
So then they have theirstandard path, which is where
you pay the $4,900, $5,000franchise fee and an ongoing
royalty of 5%.
The initial franchise fee mustbe paid in full within 150 days
of the date of signing yourfranchise agreement.
Why would someone go thestandard path?
The initial franchise fee mustbe paid in full within 150 days
of the date of signing yourfranchise agreement.
(03:57):
Why would someone go thestandard path?
Well, you may prefer thestandard path if you would
rather pay more upfront than paya higher royalty rate.
You also should choose thatpath with HomeWell if you wanted
to do more than one territory.
So it's interesting that theyhave those options.
So let's dive in further.
Let's kind of talk more aboutHomeWell.
(04:19):
So, again, the standardfranchise fee is $4,900, but you
could opt just to pay theinitial training fee of $5,000.
The royalties are 5% if youstart with the full franchise
fee of $4,900.
If you go the 5K training fee,you're paying 10 royalties on
the gross, on what you'recollecting, until you reach a
(04:40):
million five in gross revenue.
The total investment for a homewell, senior care franchise, uh
is 54 400 to 235 000.
Now you guys know my stance onthis.
Anytime we have a variancebetween low and high, I say bank
on the high, always, always,always.
Look, I've never heard ofanyone going out of business for
(05:02):
being over capitalized, butI've heard of plenty of people
that go out of business beingunder capitalized.
Sometimes people want to buy abunch of units up front, put
more money into your workingcapital.
You'll be glad you did.
They have a net worthrequirement of $250,000.
They are SBA approved.
Homewell was founded in 1996 andthey started franchising in
(05:23):
2003.
Homewell Care Services is oneof the fastest growing home care
franchises in the industry.
They offer a wide range ofnon-medical in-home care,
personal care, companionship andhomemaker services for seniors
and other homebound individualsso they can remain safely in the
comfort or wherever they callhome.
Homewell is committed tohelping people live life more
(05:44):
fully and offers specialprograms for fall prevention,
post-medical care and lifeenrichment.
I mean, basically, how it'stypically summed up, is
activities of daily living.
They have over 75 openlocations representing over 150
territories across the US.
The company has a strongpipeline of new agencies set to
open.
(06:04):
That's true.
I mean they seem toconsistently be awarding new
locations and they've beenrecognized as a franchise
business review top 100 lowinvestment franchise and
continually, they continually,continuously, continuously rank
on the entrepreneur uh franchise500 list.
Um, and of course, look, homecare.
(06:24):
The home care industry isthriving.
Um, it's a low investment, highrevenue to investment ratio and
, my estimation, one of the bestin the business.
People always ask, right?
So yesterday I'm sitting downwith a friend of mine and he
says okay, look, give me yourtop three franchise spaces.
What would I do?
Home care is always in that top.
For me, it's always in that toplist.
(06:46):
High revenue to investmentratio.
That's why Scalable with littleadditional funding.
Multiple territories canoperate from one office.
That's cool.
So they're not mandating thatyou open up additional offices.
Nearly 10,000 baby boomers willturn 65 each day over the next
15 years, fueling the agingpopulation explosion.
Okay, they put that there.
(07:07):
I'm not sure what that statwhen that stat was turned out,
but yeah, I mean it's.
It's been pretty consistentlike that for a long time.
They say in 2030, one out offive Americans, or 72 million
people, will be 65 or older.
40% of adults 65 plus needassistance with activities of
daily living.
Um, and the average distancebetween adults 60 plus in their
(07:30):
family members is 280 miles.
30% of home care clients areonly the age of 65.
Wow, my experience was thatmost of our clients when I was
in the space were 80 years andabove.
The estimated dollar value ofinformal care that family and
friends provide to olderAmericans totals $522 billion a
year, more than Medicaidspending in 2014.
(07:52):
So why should the home careindustry be considered Well?
Homewell has experiencedrecord-setting growth,
strengthening their nationalscale and presence.
They're continually investingin their brand, resulting in
strong equity for their ownersTo ensure that they deliver on
what's important to the familiesand clients that they serve.
(08:13):
They engage in ongoing consumerand brand research.
They also rely on research todevelop the most effective
messaging and discover the bestchannels to promote the HomeWell
brand among clients, families,referral partners and the
community.
Homewell Care Services is atthe forefront of one of North
America's fastest growingindustries.
They are currently seekingentrepreneurs who are motivated
(08:36):
for life-changing success.
Again, imagine, guys, you canstart your business at 5K while
making a difference in the livesof others.
That's a key point.
That's a key point, I think inthis business.
It has to be more than just thedollars.
You have to be in it.
You want to help people.
We used to call it doing wellby doing good.
They're looking for franchiseesto join the HomeWell family who
(08:56):
seek a rewarding and meaningfulexperience.
They should enjoy helpingpeople, be a front runner and
want unlimited potential in agrowing industry.
I mean, that's again what's socool about home care.
If you open up a bar franchise,you know, like the exercise
type of bar or yoga, those aregreat, but you're really limited
(09:17):
on what you can do and it'sreally high cost, whereas home
care there's no arbitrary capyou can really grow a very large
business.
And if you did a franchisesearch with me incidentally, you
can do that by texting me at305-710-0050 or going to
thefranchiseinsiderscom, goingto our calendar page and
(09:38):
scheduling a meeting we couldimmediately look at five
different home care franchisesand you would be blown away by
how high their average revenueis.
I mean, it's just so consistentat such a low investment level.
So here's the keys you need tohave a desire to make a
difference in the lives ofseniors and their families.
You need to have the ability tofollow a plan as a franchisee,
(10:00):
have a strong vision for yourfuture and your business, have
sales competency over theability to hire someone who's
strong in sales.
They want you to have a networth of $250,000 and they think
it's best if you have liquidcapital of at least $150,000.
Homewell was established in 1996.
They first started franchisingin 2003.
They have 125 units, nocorporate-owned units.
(10:23):
They are registered allthroughout the United States.
They are not available in NewYork, louisiana and Washington.
They are not looking forCanadian franchisees or
international franchisees atthis point.
At this point, they're lookingfor franchise owners in
Albuquerque, new Mexico, atlanta, georgia, boise, idaho,
(10:44):
charleston, south Carolina,cleveland, Ohio, columbia, south
Carolina, gainesville, florida,hartford, connecticut,
indianapolis, indiana,jacksonville, florida, milwaukee
, wisconsin, minneapolis,minnesota, new Haven,
connecticut, oklahoma City,oklahoma, providence, rhode
Island and Tulsa, oklahoma.
So, guys, if that sounds likeyou and if you want to explore
(11:05):
home well care services, text meat 305-710-0050.
Again, imagine being able toget started for just five grand
with your own business.
That's highly scalable.
This is not like a part-timebusiness.
You should be ready to dive inand build a big business that
helps people.
But there's definite trendinggoing on here.
As I said, we've helped fourdifferent people get into the
(11:28):
senior home care space over thepast month.
Two of them were with HomeWellSenior Care.
So it just goes to show youthat people are definitely very
excited with what they're seeingwith HomeWell, and HomeWell has
a really good team.
So if you'd like my help inexploring HomeWell care services
or any other franchise you knowthe drill Text me at
305-710-0050 and I'll talk toyou on the next Inside Scoop
(11:53):
podcast.
Hope everyone had a greatThanksgiving.
Hi everyone, welcome to the Inside Scoop Franchise
Podcast.
I'm Jack Johnson here, yourhost, back with you.
Hope everyone had a terrificThanksgiving.
Hopefully everyone had lots ofgreat food and time with friends
and family.
I broke a personal record byeating two complete Thanksgiving
meals yesterday, one at threeand one at seven.
(00:21):
Never thought I'd do that.
Anyways, glad to be back withyou after a great time with
friends and family.
That, ultimately, you guys, isthe most important part.
That's when we think about this.
Why are we interested inbusiness ownership?
Why are we interested infranchising?
It's because we want morequality time, right, we want to
be able to spend more time withthe ones that we love.
(00:43):
We want the means to travel anddo things with them and create
those great moments.
I heard an interesting thingyesterday on a podcast I was
listening to.
I think it was on the PeterAttia podcast and he asked a
question.
He said okay, let's imagineright now you could trade places
with Warren Buffett, who is90-some years old and has
(01:04):
billions of dollars.
Right?
Would you do it?
Would you trade right now forall his money or would you stay
where you are?
Let's even say it like thisWould you rather be a penniless
20-year-old or Warren Buffett at90 with the billions.
I thought it was a reallyinteresting question.
What would you choose?
It leads back to we'reinterested in time, we're
(01:28):
interested in experiences andthat's why we're looking to make
these changes and so kind ofgoing along that path.
There's an interesting trendthat's happened in our business.
Over the past month.
We've placed four differentclients into home health care
senior care franchises.
These are the types ofbusinesses where you're
(01:52):
essentially you own a staffingagency, right, you are hiring
what we call caregivers and infact, there's actually one of
these franchises that we placeda client in.
The caregivers are not youremployees.
You're essentially a matchingservice, but for the most part,
what you're doing is you'repairing caregivers who are
nursing assistants and homehealth aides into the homes of
(02:12):
clients who are typically olderand more frail and who don't
want to go to a facility.
And these businessestraditionally, as you've heard
me talk about on previouspodcasts, have outstanding
revenue numbers, some of thebest in franchising, and they're
some of the lowest costfranchises that are out there.
So take, for example, thefranchise I want to talk to you
(02:33):
guys about today, which isHomewell Care Services.
Their franchise fee is $4,900,but HomeWell has a very
interesting zero initialfranchise fee option.
You can start your HomeWellcare services agency with no
initial franchise fee and optfor just the initial training
(02:55):
fee of $5,000 at signing and a10% ongoing royalty rate until
reaching a predetermined amountof revenue, which in this case
is you pay 10% royalties on or aminimum royalty fee, whichever
is greater, for the first $1.5million of gross revenue
(03:16):
generated by your first HomeWellbusiness.
That's pretty freaking coolguys.
So let's just say you want toput less money down on the
franchise fee and more intoworking capital fee.
That's really an interestingway to get started in a very
(03:36):
high potential business, highneed for a very small amount of
money.
So then they have theirstandard path, which is where
you pay the $4,900, $5,000franchise fee and an ongoing
royalty of 5%.
The initial franchise fee mustbe paid in full within 150 days
of the date of signing yourfranchise agreement.
Why would someone go thestandard path?
The initial franchise fee mustbe paid in full within 150 days
of the date of signing yourfranchise agreement.
(03:57):
Why would someone go thestandard path?
Well, you may prefer thestandard path if you would
rather pay more upfront than paya higher royalty rate.
You also should choose thatpath with HomeWell if you wanted
to do more than one territory.
So it's interesting that theyhave those options.
So let's dive in further.
Let's kind of talk more aboutHomeWell.
(04:19):
So, again, the standardfranchise fee is $4,900, but you
could opt just to pay theinitial training fee of $5,000.
The royalties are 5% if youstart with the full franchise
fee of $4,900.
If you go the 5K training fee,you're paying 10 royalties on
the gross, on what you'recollecting, until you reach a
(04:40):
million five in gross revenue.
The total investment for a homewell, senior care franchise, uh
is 54 400 to 235 000.
Now you guys know my stance onthis.
Anytime we have a variancebetween low and high, I say bank
on the high, always, always,always.
Look, I've never heard ofanyone going out of business for
(05:02):
being over capitalized, butI've heard of plenty of people
that go out of business beingunder capitalized.
Sometimes people want to buy abunch of units up front, put
more money into your workingcapital.
You'll be glad you did.
They have a net worthrequirement of $250,000.
They are SBA approved.
Homewell was founded in 1996 andthey started franchising in
(05:23):
2003.
Homewell Care Services is oneof the fastest growing home care
franchises in the industry.
They offer a wide range ofnon-medical in-home care,
personal care, companionship andhomemaker services for seniors
and other homebound individualsso they can remain safely in the
comfort or wherever they callhome.
Homewell is committed tohelping people live life more
(05:44):
fully and offers specialprograms for fall prevention,
post-medical care and lifeenrichment.
I mean, basically, how it'stypically summed up, is
activities of daily living.
They have over 75 openlocations representing over 150
territories across the US.
The company has a strongpipeline of new agencies set to
open.
(06:04):
That's true.
I mean they seem toconsistently be awarding new
locations and they've beenrecognized as a franchise
business review top 100 lowinvestment franchise and
continually, they continually,continuously, continuously rank
on the entrepreneur uh franchise500 list.
Um, and of course, look, homecare.
(06:24):
The home care industry isthriving.
Um, it's a low investment, highrevenue to investment ratio and
, my estimation, one of the bestin the business.
People always ask, right?
So yesterday I'm sitting downwith a friend of mine and he
says okay, look, give me yourtop three franchise spaces.
What would I do?
Home care is always in that top.
For me, it's always in that toplist.
(06:46):
High revenue to investmentratio.
That's why Scalable with littleadditional funding.
Multiple territories canoperate from one office.
That's cool.
So they're not mandating thatyou open up additional offices.
Nearly 10,000 baby boomers willturn 65 each day over the next
15 years, fueling the agingpopulation explosion.
Okay, they put that there.
(07:07):
I'm not sure what that statwhen that stat was turned out,
but yeah, I mean it's.
It's been pretty consistentlike that for a long time.
They say in 2030, one out offive Americans, or 72 million
people, will be 65 or older.
40% of adults 65 plus needassistance with activities of
daily living.
Um, and the average distancebetween adults 60 plus in their
(07:30):
family members is 280 miles.
30% of home care clients areonly the age of 65.
Wow, my experience was thatmost of our clients when I was
in the space were 80 years andabove.
The estimated dollar value ofinformal care that family and
friends provide to olderAmericans totals $522 billion a
year, more than Medicaidspending in 2014.
(07:52):
So why should the home careindustry be considered Well?
Homewell has experiencedrecord-setting growth,
strengthening their nationalscale and presence.
They're continually investingin their brand, resulting in
strong equity for their ownersTo ensure that they deliver on
what's important to the familiesand clients that they serve.
(08:13):
They engage in ongoing consumerand brand research.
They also rely on research todevelop the most effective
messaging and discover the bestchannels to promote the HomeWell
brand among clients, families,referral partners and the
community.
Homewell Care Services is atthe forefront of one of North
America's fastest growingindustries.
They are currently seekingentrepreneurs who are motivated
(08:36):
for life-changing success.
Again, imagine, guys, you canstart your business at 5K while
making a difference in the livesof others.
That's a key point.
That's a key point, I think inthis business.
It has to be more than just thedollars.
You have to be in it.
You want to help people.
We used to call it doing wellby doing good.
They're looking for franchiseesto join the HomeWell family who
(08:56):
seek a rewarding and meaningfulexperience.
They should enjoy helpingpeople, be a front runner and
want unlimited potential in agrowing industry.
I mean, that's again what's socool about home care.
If you open up a bar franchise,you know, like the exercise
type of bar or yoga, those aregreat, but you're really limited
(09:17):
on what you can do and it'sreally high cost, whereas home
care there's no arbitrary capyou can really grow a very large
business.
And if you did a franchisesearch with me incidentally, you
can do that by texting me at305-710-0050 or going to
thefranchiseinsiderscom, goingto our calendar page and
(09:38):
scheduling a meeting we couldimmediately look at five
different home care franchisesand you would be blown away by
how high their average revenueis.
I mean, it's just so consistentat such a low investment level.
So here's the keys you need tohave a desire to make a
difference in the lives ofseniors and their families.
You need to have the ability tofollow a plan as a franchisee,
(10:00):
have a strong vision for yourfuture and your business, have
sales competency over theability to hire someone who's
strong in sales.
They want you to have a networth of $250,000 and they think
it's best if you have liquidcapital of at least $150,000.
Homewell was established in 1996.
They first started franchisingin 2003.
They have 125 units, nocorporate-owned units.
(10:23):
They are registered allthroughout the United States.
They are not available in NewYork, louisiana and Washington.
They are not looking forCanadian franchisees or
international franchisees atthis point.
At this point, they're lookingfor franchise owners in
Albuquerque, new Mexico, atlanta, georgia, boise, idaho,
(10:44):
charleston, south Carolina,cleveland, Ohio, columbia, south
Carolina, gainesville, florida,hartford, connecticut,
indianapolis, indiana,jacksonville, florida, milwaukee
, wisconsin, minneapolis,minnesota, new Haven,
connecticut, oklahoma City,oklahoma, providence, rhode
Island and Tulsa, oklahoma.
So, guys, if that sounds likeyou and if you want to explore
(11:05):
home well care services, text meat 305-710-0050.
Again, imagine being able toget started for just five grand
with your own business.
That's highly scalable.
This is not like a part-timebusiness.
You should be ready to dive inand build a big business that
helps people.
But there's definite trendinggoing on here.
As I said, we've helped fourdifferent people get into the
(11:28):
senior home care space over thepast month.
Two of them were with HomeWellSenior Care.
So it just goes to show youthat people are definitely very
excited with what they're seeingwith HomeWell, and HomeWell has
a really good team.
So if you'd like my help inexploring HomeWell care services
or any other franchise you knowthe drill Text me at
305-710-0050 and I'll talk toyou on the next Inside Scoop
(11:53):
podcast.
Hope everyone had a greatThanksgiving.
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