The Franchise Insiders "Inside Scoop" Podcast
Jack and Jill Johnson are two of the most experienced franchise experts in the industry, and their podcast The Inside Scoop is a must-listen for anyone considering investing in a franchise. Here are five reasons why:1. Jack and Jill have over 20 years of experience in the franchise industry. 2. They sell franchises, so they know which ones are actually making money. 3. They're not afraid to tell it like it is - you won't find any boring interviews on this podcast. 4. Every episode is jam-packed with financials and data that you can use to make an informed decision about which franchise is right for you. 5. Their insights and observations about the franchise industry are incredibly valuable - you won't find anything else like it out there. If you're thinking about investing in a franchise, make sure to add The Inside Scoop podcast to your must-listen list.
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The Franchise Insiders "Inside Scoop" Podcast
Is There Really a Franchise You Can Own for $5K initial fee?
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
Hi everyone, welcome to the Inside Scoop Franchise Podcast. I'm Jack Johnson here, your host, back with you. Hope everyone had a terrific Thanksgiving. Hopefully everyone had lots of great food and time with friends and family. I broke a personal record by eating two complete Thanksgiving meals yesterday, one at three and one at seven. Never thought I'd do that. Anyways, glad to be back with you after a great time with friends and family. That, ultimately, you guys, is the most important part. That's when we think about this. Why are we interested in business ownership? Why are we interested in franchising? It's because we want more quality time, right, we want to be able to spend more time with the ones that we love. We want the means to travel and do things with them and create those great moments.
Speaker 1:I heard an interesting thing yesterday on a podcast I was listening to. I think it was on the Peter Attia podcast and he asked a question. He said okay, let's imagine right now you could trade places with Warren Buffett, who is 90-some years old and has billions of dollars. Right? Would you do it? Would you trade right now for all his money or would you stay where you are? Let's even say it like this Would you rather be a penniless 20-year-old or Warren Buffett at 90 with the billions. I thought it was a really interesting question. What would you choose? It leads back to we're interested in time, we're interested in experiences and that's why we're looking to make these changes and so kind of going along that path.
Speaker 1:There's an interesting trend that's happened in our business. Over the past month. We've placed four different clients into home health care senior care franchises. These are the types of businesses where you're essentially you own a staffing agency, right, you are hiring what we call caregivers and in fact, there's actually one of these franchises that we placed a client in. The caregivers are not your employees. You're essentially a matching service, but for the most part, what you're doing is you're pairing caregivers who are nursing assistants and home health aides into the homes of clients who are typically older and more frail and who don't want to go to a facility. And these businesses traditionally, as you've heard me talk about on previous podcasts, have outstanding revenue numbers, some of the best in franchising, and they're some of the lowest cost franchises that are out there.
Speaker 1:So take, for example, the franchise I want to talk to you guys about today, which is Homewell Care Services. Their franchise fee is $4,900, but HomeWell has a very interesting zero initial franchise fee option. You can start your HomeWell care services agency with no initial franchise fee and opt for just the initial training fee of $5,000 at signing and a 10% ongoing royalty rate until reaching a predetermined amount of revenue, which in this case is you pay 10% royalties on or a minimum royalty fee, whichever is greater, for the first $1.5 million of gross revenue generated by your first HomeWell business. That's pretty freaking cool guys. So let's just say you want to put less money down on the franchise fee and more into working capital fee. That's really an interesting way to get started in a very high potential business, high need for a very small amount of money. So then they have their standard path, which is where you pay the $4,900, $5,000 franchise fee and an ongoing royalty of 5%. The initial franchise fee must be paid in full within 150 days of the date of signing your franchise agreement. Why would someone go the standard path? The initial franchise fee must be paid in full within 150 days of the date of signing your franchise agreement. Why would someone go the standard path? Well, you may prefer the standard path if you would rather pay more upfront than pay a higher royalty rate. You also should choose that path with HomeWell if you wanted to do more than one territory. So it's interesting that they have those options.
Speaker 1:So let's dive in further. Let's kind of talk more about HomeWell. So, again, the standard franchise fee is $4,900, but you could opt just to pay the initial training fee of $5,000. The royalties are 5% if you start 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're collecting, until you reach a million five in gross revenue.
Speaker 1:The total investment for a home well, senior care franchise, uh is 54 400 to 235 000. Now you guys know my stance on this. Anytime we have a variance between low and high, I say bank on the high, always, always, always. Look, I've never heard of anyone going out of business for being over capitalized, but I've heard of plenty of people that go out of business being under capitalized. Sometimes people want to buy a bunch of units up front, put more money into your working capital. You'll be glad you did. They have a net worth requirement of $250,000. They are SBA approved.
Speaker 1:Homewell was founded in 1996 and they started franchising in 2003. Homewell Care Services is one of the fastest growing home care franchises in the industry. They offer a wide range of non-medical in-home care, personal care, companionship and homemaker services for seniors and other homebound individuals so they can remain safely in the comfort or wherever they call home. Homewell is committed to helping people live life more fully and offers special programs for fall prevention, post-medical care and life enrichment. I mean, basically, how it's typically summed up, is activities of daily living. They have over 75 open locations representing over 150 territories across the US. The company has a strong pipeline of new agencies set to open. That's true. I mean they seem to consistently be awarding new locations and they've been recognized as a franchise business review top 100 low investment franchise and continually, they continually, continuously, continuously rank on the entrepreneur uh franchise 500 list.
Speaker 1:Um, and of course, look, home care. The home care industry is thriving. Um, it's a low investment, high revenue to investment ratio and, my estimation, one of the best in the business. People always ask, right? So yesterday I'm sitting down with a friend of mine and he says okay, look, give me your top three franchise spaces. What would I do? Home care is always in that top. For me, it's always in that top list. High revenue to investment ratio. That's why Scalable with little additional funding. Multiple territories can operate from one office. That's cool. So they're not mandating that you open up additional offices.
Speaker 1:Nearly 10,000 baby boomers will turn 65 each day over the next 15 years, fueling the aging population explosion. Okay, they put that there. I'm not sure what that stat when that stat was turned out, but yeah, I mean it's. It's been pretty consistent like that for a long time. They say in 2030, one out of five Americans, or 72 million people, will be 65 or older. 40% of adults 65 plus need assistance with activities of daily living. Um, and the average distance between adults 60 plus in their family members is 280 miles. 30% of home care clients are only the age of 65. Wow, my experience was that most of our clients when I was in the space were 80 years and above. The estimated dollar value of informal care that family and friends provide to older Americans totals $522 billion a year, more than Medicaid spending in 2014. So why should the home care industry be considered Well?
Speaker 1:Homewell has experienced record-setting growth, strengthening their national scale and presence. They're continually investing in their brand, resulting in strong equity for their owners To ensure that they deliver on what's important to the families and clients that they serve. They engage in ongoing consumer and brand research. They also rely on research to develop the most effective messaging and discover the best channels to promote the HomeWell brand among clients, families, referral partners and the community. Homewell Care Services is at the forefront of one of North America's fastest growing industries. They are currently seeking entrepreneurs who are motivated for life-changing success.
Speaker 1:Again, imagine, guys, you can start your business at 5K while making a difference in the lives of others. That's a key point. That's a key point, I think in this business. It has to be more than just the dollars. You have to be in it. You want to help people. We used to call it doing well by doing good. They're looking for franchisees to join the HomeWell family who seek a rewarding and meaningful experience. They should enjoy helping people, be a front runner and want unlimited potential in a growing industry. I mean, that's again what's so cool about home care. If you open up a bar franchise, you know, like the exercise type of bar or yoga, those are great, but you're really limited on what you can do and it's really high cost, whereas home care there's no arbitrary cap you can really grow a very large business. And if you did a franchise search with me incidentally, you can do that by texting me at 305-710-0050 or going to thefranchiseinsiderscom, going to our calendar page and scheduling a meeting we could immediately look at five different home care franchises and you would be blown away by how high their average revenue is. I mean, it's just so consistent at such a low investment level. So here's the keys you need to have a desire to make a difference in the lives of seniors and their families. You need to have the ability to follow a plan as a franchisee, have a strong vision for your future and your business, have sales competency over the ability to hire someone who's strong in sales. They want you to have a net worth of $250,000 and they think it's best if you have liquid capital of at least $150,000.
Speaker 1:Homewell was established in 1996. They first started franchising in 2003. They have 125 units, no corporate-owned units. They are registered all throughout the United States. They are not available in New York, louisiana and Washington. They are not looking for Canadian franchisees or international franchisees at this point. At this point, they're looking for franchise owners in Albuquerque, new Mexico, atlanta, georgia, boise, idaho, 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.
Speaker 1:So, guys, if that sounds like you and if you want to explore home well care services, text me at 305-710-0050. Again, imagine being able to get started for just five grand with your own business. That's highly scalable. This is not like a part-time business. You should be ready to dive in and build a big business that helps people. But there's definite trending going on here. As I said, we've helped four different people get into the senior home care space over the past month. Two of them were with HomeWell Senior Care. So it just goes to show you that people are definitely very excited with what they're seeing with HomeWell, and HomeWell has a really good team. So if you'd like my help in exploring HomeWell care services or any other franchise you know the drill Text me at 305-710-0050 and I'll talk to you on the next Inside Scoop podcast. Hope everyone had a great Thanksgiving.