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FirstLight HomeCare Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What is the Initial Investment for a FirstLight HomeCare Franchise?
To open a FirstLight HomeCare franchise, you will need an initial investment ranging from $125,675 to $199,660. This includes a franchise fee of $50,000. Additionally, you should have at least $75,000 in cash available and a net worth of $150,000. Understanding these financial requirements is crucial as you plan your entry into the home care industry.
What are the Ongoing Fees for a FirstLight HomeCare Franchise?
As a FirstLight HomeCare franchisee, you will be responsible for ongoing fees that include a royalty fee of 5% of your gross sales and a marketing fee of 2%. These fees contribute to the overall support and brand recognition you receive from the corporate team, helping you effectively market your services and maintain operational standards.
What are the Revenue Potential and Performance Metrics for FirstLight HomeCare?
The average annual revenue per unit for a FirstLight HomeCare franchise is approximately $1,340,576, with a median revenue of $981,146. Franchisees can expect a breakeven time of around 18 months, with an investment payback period of about 24 months. This strong revenue potential highlights the business's ability to generate significant income, making it an attractive opportunity for aspiring franchisees.
How Many FirstLight HomeCare Units are Currently Operating?
As of 2023, FirstLight HomeCare has a total of 203 franchised units, showing steady growth from 183 units in 2021 and 195 units in 2022. This consistent increase in franchised locations indicates a growing demand for home care services and the brand's expanding footprint in the market, making it a viable option for new franchisees looking to enter a thriving industry.
FirstLight HomeCare Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
FirstLight HomeCare Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 183 | 195 | 203 |
| Net Change YoY | 12 | 8 | |
| Franchised Units | 183 | 195 | 203 |
| Net Change YoY | 12 | 8 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
FirstLight HomeCare offers a range of initial investment options, with a low end of $125,675 and a high end of $199,660. This includes a franchise fee of $50,000, making it an accessible choice for aspiring franchisees. The cash required to start is $75,000, and a net worth of $150,000 is necessary to qualify for ownership.
Revenue Potential
Franchisees can expect an average annual revenue of $1,340,576 per unit, with a median of $981,146. The revenue range is quite broad, with the lowest recorded annual revenue at $97,688 and the highest reaching $6,863,832. This potential for high earnings makes FirstLight HomeCare an attractive investment in the home care industry.
Operational Fees
FirstLight HomeCare charges a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These fees contribute to the overall operational costs but are designed to support franchisees through marketing initiatives and brand development, helping to drive customer acquisition and retention.
Financial Performance
The average cost of goods sold (COGS) is approximately $1,021,884, which accounts for 76.1% of revenue. This leaves a gross profit margin of 23.9%. With operating expenses at 52.7%, franchisees can anticipate an EBITDA of about $3,278,132, representing 24.4% of revenue, indicating a healthy profit potential for well-managed units.
Franchise Growth
FirstLight HomeCare has shown steady growth in franchised units, increasing from 183 in 2021 to 203 in 2023. This growth trajectory suggests a strong demand for home care services and the brand's effective franchise model, making it a promising opportunity for new franchisees looking to enter a growing market.
Breakeven and Payback
Franchisees can expect to break even within approximately 18 months and achieve investment payback in about 24 months. This relatively quick return on investment is appealing for entrepreneurs, allowing them to recoup their initial costs and start generating profit in a timely manner.
Frequently Asked Questions
The initial investment for a FirstLight HomeCare franchise ranges from $125,675 to $199,660, which includes a franchise fee of $50,000.