Starting a Homecare Caregiver Business

Franchising vs. Going solo

The home care industry is growing. Most people want to age at home rather than move to a facility, and the population is getting older.

The number of people 65 and older has increased sharply. Life expectancy has roughly doubled in the last century. Demographers project this age group will grow faster than any other for the next several decades.

This growth has created demand for experienced, compassionate home care services. Some people starting businesses in this space choose to go independent. Others partner with an established franchisor.

Who makes a good home care business owner?

First, consider whether this business fits you. We look for certain traits in potential owners: entrepreneurial instinct, willingness to take calculated risks, and comfort with uncertainty. Some people get stuck analyzing—we try to move them toward deciding.

Compassion matters more than profit motive. You'll be responsible for people's care and safety. If that doesn't feel important to you, this isn't the right business.

Business experience helps. You need to understand risk, recognize good decisions from bad ones, and know how to sell and market. A background in sales or small business is valuable.

Medical experience is a plus but not required. Your location also matters—you'll need a neighborhood with enough older adults and families seeking care to make the business viable.

Any medical experience is also a plus, but not mandatory. Finally, the qualified candidate should reside in an area that meets certain demographic criteria, which help ensure that the business can profit.

Joining a franchise organization

A franchise gives you a proven system. You get training, ongoing support, shared manuals, and access to the franchisor's industry connections.

For insurance, licensing, regulations, and hiring—areas where mistakes are expensive—you have expert help. Instead of negotiating your own liability and workers' comp rates, the franchisor connects you with preferred vendors who offer discounts.

In states that license home care agencies, a good franchisor guides you through the application process and helps you write required policies and procedures.

Going solo, you handle compliance research yourself. Mistakes can mean fines and penalties.

You'll be part of a network. Franchisors hold regional and national meetings and conference calls where owners share experiences, problems, and solutions.

You also get help with marketing, branding, public relations, and operational details like forms and software setup. The franchisor handles the business foundation so you can focus on client acquisition and revenue.

Franchisors also offer marketing and management expertise, operational support including the development of forms, branding and public relations.

Experienced franchisors actively help the franchisee navigate through licensing, business set up, insurance, necessary software, worker’s compensation, and caregiver recruitment to enable franchisees to focus on the most important aspect of their business: acquiring clients and generating revenue.

Going it alone

Some owners prefer full control. They want to build their own brand, develop their own materials, set their own policies, and answer only to themselves.

If you already have a reputation in your community, existing referral sources, and established practices, a franchise may feel unnecessary. You can build local name recognition instead of representing a national brand.

You also avoid franchise fees and the typical 3–5% monthly royalty. But independence comes with real costs. Without a mentor's experience, you'll likely repeat mistakes that franchisors have already learned from. You'll do more work, make slower decisions, and carry more risk.

What to look for in a franchise organization

If franchising seems right, choose a franchisor that:

• Requires an in-person meeting with corporate staff. You'll work together for years—chemistry matters.
• Introduces you to all key staff before you sign anything.
• Lets you talk to at least 3–5 franchisees in markets like yours.
• Provides at least a week of training and stays available for ongoing support. Do they visit in your first year?
• Helps you comply with federal regulations and state licensing requirements if they apply where you'll operate.

Both paths have real advantages and drawbacks. The right choice depends on your situation, experience, and temperament.

Talk to independent home care owners and franchisees. Ask what they wish they'd known. Get clear answers to your questions before you commit.

Authors

• Alex Morrison, Vice President of Domestic Franchising, Homewatch CareGivers
• Jennifer Tucker, Vice President of Franchise Support, Homewatch CareGivers

Homewatch CareGivers has provided home care services since 1980 and began franchising in 1997. The company is based in Denver, Colorado.