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Most people who choose to open a home care franchise start with a sense of purpose, not a spreadsheet. They’re searching for work that matters, close to home, helping older adults stay in the place they know best.
But the financial question is important too: how will you actually pay for this investment? This guide walks through home care franchise investment costs and four common paths to financing.
The total cost of a home care franchise includes the full amount you need to open the business and keep it running until it supports itself, not just the upfront franchise fee.
For Griswold, the total initial investment ranges from $99,600 to $185,600*. This figure covers the franchise fee of $49,500 for your first territory, plus working capital, initial marketing, insurance, and enough payroll runway to employ your first caregivers while you build a client base. Understanding the full investment breakdown will help you calculate how much financing you actually need.
An SBA 7(a) loan is a bank loan partly guaranteed by the U.S. Small Business Administration, which lowers the lender’s risk and makes franchise financing easier to secure. It is the most common way owners fund a home care franchise.
For a franchise, terms usually run about 10 years, and lenders expect an owner injection of at least 10 percent of the total project cost. The brand you’re investing in must also appear on the SBA Franchise Directory for the loan to qualify. Lenders look at your credit score, your available cash, and a personal guarantee. Prior home care industry experience can help but is not required, since Griswold equips franchisees with comprehensive training and a proven model.
A Rollover for Business Startups, or ROBS, lets you fund a franchise with money already in a 401(k) or IRA without triggering the 10 percent early-withdrawal penalty or income tax.
Prospective franchise owners can choose to form a C corporation, roll their existing retirement funds into a new plan under that corporation, and then use the plan to buy stock in the company, giving their business the cash it needs to open.
However, there is a tradeoff. Your retirement savings become business capital, so if the business struggles, that money is exposed. The IRS sets specific compliance rules for ROBS, so most franchise owners opt to set it up with a provider who specializes in this area.
A home equity line of credit, or HELOC, lets you borrow against the value of your home and draw on it as you need cash, often at lower interest than an unsecured loan. Franchise owners may use a HELOC to cover a down payment or to hold a working capital reserve. Like ROBS, there are tradeoffs to consider. You are pledging your primary residence, so you should only borrow what you can comfortably repay.
If you served in the military, financing a home care franchise can cost less from the start. Griswold Home Care offers a 20 percent discount on the franchise fee for veterans, which lowers the amount you need to finance.
SBA loans can be paired with veteran incentives, so many veteran owners combine the two into one of the more affordable routes to ownership.
The right financing mix comes down to five things.
Many owners blend multiple financing solutions instead of picking one. Our franchise development team can walk you through financing options for your Griswold Home Care franchise.
Financing is the mechanics. But the reason to open a Griswold home care franchise is the work itself: helping older adults live well at home, in your own community.
Once you know that is the path you’re looking for, we can walk you through the numbers. Our franchise development team will help you explore the options that best match your savings, your goals, and the territory you have in mind. Reach out today to start the conversation.
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