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Visiting Angels Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What Are the Initial Investment Requirements for a Visiting Angels Franchise?
To open a Visiting Angels franchise, you will need to prepare for an initial investment ranging from $125,460 to $171,150. This includes a franchise fee of $51,950. Additionally, you should have at least $50,000 in cash readily available, along with a net worth that falls between $50,000 and $500,000. Understanding these financial commitments is crucial for aspiring franchisees as they plan their entry into the home care industry.
What Are the Ongoing Fees Associated with a Visiting Angels Franchise?
As a Visiting Angels franchisee, you will incur ongoing fees that include a royalty fee of 3.5% on your gross revenue and a marketing fee of 2.5%. These fees are essential for maintaining brand standards and supporting your local marketing efforts. It's important to factor these costs into your financial projections to ensure your business remains profitable.
What Is the Average Revenue Potential for a Visiting Angels Franchise?
The average annual revenue for a Visiting Angels franchise unit is approximately $365,000, with the potential for revenue to range from $30,000 to $1,000,000. This wide range highlights the variability in performance based on factors such as location, market demand, and operational efficiency. Understanding these figures can help you gauge the potential return on your investment and set realistic financial goals.
How Long Does It Take to Break Even with a Visiting Angels Franchise?
Franchisees can expect a breakeven period of around 36 months, with an investment payback period of approximately 24 months. This timeline indicates that while the initial phase may require significant effort and resources, successful franchisees can start seeing a return on their investment within a reasonable timeframe. It's vital to have a solid business plan and operational strategy to achieve these benchmarks effectively.
Visiting Angels 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:
Visiting Angels 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 | 541 | 536 | 542 |
| Net Change YoY | -5 | 6 | |
| Franchised Units | 541 | 536 | 542 |
| Net Change YoY | -5 | 6 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The initial investment for a Visiting Angels franchise ranges from $125,460 to $171,150, with a franchise fee of $51,950. New franchisees should be prepared with a minimum cash requirement of $50,000 and a net worth between $50,000 and $500,000. This investment structure is designed to support franchisees in establishing a successful home care business, ensuring they have the necessary resources to thrive.
Revenue Potential
Visiting Angels franchises have demonstrated significant revenue potential, with average annual revenue per unit reported at $365,000. The revenue range varies widely, with the lowest annual revenue at $30,000 and the highest reaching $1,000,000. This variability highlights the potential for growth and success, depending on the franchisee’s operational strategy and market conditions.
Fees and Royalties
Franchisees are subject to ongoing fees, including a royalty fee of 3.5% of gross sales and a marketing fee of 2.5%. These fees contribute to the overall support and resources provided by the franchisor, helping franchisees effectively market their services and maintain brand standards while enhancing their business's visibility and growth potential.
Operational Performance
The average breakeven time for a Visiting Angels franchise is approximately 36 months, with an investment payback period of around 24 months. These metrics indicate a reasonable timeframe for franchisees to recover their initial investments and start generating profit, making the franchise an attractive opportunity for those looking to enter the home care industry.
Franchise Growth
As of 2023, Visiting Angels operates 542 franchised units, showing a steady growth trajectory with slight fluctuations in the number of units over the past few years. The consistent presence of franchised units indicates a strong demand for home care services and the effectiveness of the Visiting Angels business model in attracting new franchisees.
Business Structure
Visiting Angels operates as a franchise system focused on providing non-medical home care services. The company has no corporate-owned units, which emphasizes its commitment to empowering franchisees with ownership and operational control. This structure fosters a community of independent operators who can leverage the brand’s reputation while tailoring their services to meet local market needs.
Frequently Asked Questions
The initial investment for a Visiting Angels franchise ranges from $125,460 to $171,150, which includes the franchise fee of $51,950.