Franchising Feature Article: Senior Care Franchising – Caring About Our Future

Caring for others, especially our elders, is an honourable calling. Caregivers are our everyday heroes, answering the call to help our senior citizens navigate the challenges of old age with dignity.

And with our aging population, it’s a calling that is seeing an increasing need. Life expectancy now surpasses 78.93 years, an increase of more than three-and-a-half-years since 1990, and according to the U.S. Census Bureau, the over 60 demographic is expected to double by 2050 to 1.2 billion.

That’s a lot of demand for aged care services. In addition, as the challenges of our current senior care system continue to be revealed, particularly after the trials of the pandemic, people are taking a closer look at the quality and diversity of care being offered to our elders, and future generations of elders.

Covid-19 exposed the vulnerabilities of healthcare and senior care systems. Many senior care franchise systems reacted by leaning in and developing ways to improve their processes and systems to make their service more resilient and responsive to changing senior care needs. Technology, for example, played a big role. Franchises looked to digital solutions for care needs like client assessments, caregiver recruitment, administration and so on, allowing for more flexible arrangements for both clients and staff.

“There is a wonderful mythical law of nature that the three things we crave most in life — happiness, freedom, and peace of mind — are always attained by giving them to someone else.”

– Peyton Conway March

“The most important decision to make before starting a senior care franchise is to decide whether an in-home or residential care franchise is the right fit for you.” “Many senior care franchise systems reacted by leaning in and developing ways to improve their processes and systems to make their service more resilient and responsive to changing senior care needs.”

BEFORE YOU GET STARTED

Prior to investing in a senior health care franchisee, it would be wise to ask yourself:

• how well has this prospective franchisor held up to the challenges of the pandemic?

• are they future-proofed to deal with the increasing demands of our aging population?

Do your research and carefully review the franchisor’s Franchise Disclosure Document (FDD) for more detailed information on all systems, procedures and associated costs. Remember to enquire about any additional costs that may not be covered in the FDD, including employee wages and utility costs. Having a clear picture of every single cost involved will ensure you don’t have any bill shocks that could cause a disruption to the essential service you provide.

Don’t forget to visit trade shows, talk to other franchise operators and reach out to a franchise consultant to talk through your personal situation and franchise ambitions – they can help you understand your best path forward to success.

IN-HOME OR SENIOR CARE?

The most important decision to make before starting a senior care franchise is to decide whether an in-home or residential care franchise is the right fit for you.

IN-HOME CARE provides general healthcare, home help services, physical therapy and medical services, as well as general companionship. Some service providers specialize in one or two areas only (like home help and companionship with no medical services), others cover a wider range of services. While most inhome care is provided to seniors, it can be provided to people of all ages, such as younger people with a disability or physical injury.

According to IBISWorld, the in-home senior care franchise industry grew 8 percent between 2014 and 2019, driven by the gaining baby boomer population and the demand for more convenient and comfortable care options. IBISWorld reports predict that the in-home care franchise industry will continue to grow over the next five years as the rise in technology and medical advancements continue to make it possible for people to stay independent and ‘age in place’ in their own home for longer.

RESIDENTIAL SENIOR CARE franchises are facilities that primarily provide residential and personal-care services for elderly people who are unable to fully care for themselves at home. Strong franchise contenders providing this type of care have increasingly moved away from the nursing-home/hospital style conditions of the past to more home-like environments.

The residential industry grew strongly over the last five years at 10.3% to $4.3 billion.

Senior residential franchises look set to continue to be lucrative well into the future.