The early days of a franchise can be scary, but we’ll be there with you, helping you to achieve your targets. As a result, the financial risk is much lower than that of launching your own business. And once you’re up and running, there’s a bright future ahead. Home Instead has only been established in the UK since 2005. Based on our success in other countries, we anticipate that as our brand becomes even more established, revenues will increase still further. Obviously, we can’t guarantee any level of financial achievement, as individual franchisee performance has a significant influence on the success of the franchise. However, we’ll work with you to develop a detailed business model for your franchise.
So what could be your potential earnings? Half of our franchisees turn over £1 million a year and our highest achieving owners turn over between £2.5 million and £3 million per year. We’d expect an established office to achieve an operating profit (before franchise owner earnings) of about 12-18%. It’s worth noting that a market share of just 0.5% of older people in your territory could potentially produce annual revenues of £1.1 million.
For a new franchise, our franchise fee is £41,000 (exc. VAT), with an ongoing royalty fee of 6.5% (exc. VAT). The total investment required is between £90,000 and £110,000, including working capital and the franchise fee. For a resale, the franchise fee is £20,500 (exc. VAT), with an ongoing royalty fee of 6.5% (exc. VAT). In addition there is the price at which the current franchise is being sold. Please see our resales page for more information.
Help is at hand with funding. We’ve established good relationships with particular High Street banks who have a strong understanding of the franchise sector. As Home Instead has a proven model with over 250 successful franchises, these banks will consider funding up to 70% of the total investment required for new franchises and 80% of the total investment over a longer period for a resale. This is a great testament to both our brand and the opportunity that our franchises represent.