5 Challenges Home Care Franchises Face in 2021


Any new venture comes with its fair share of challenges and growing pains. For entrepreneurs looking to become senior care franchise owners, there may be a whirlwind of obstacles to overcome. However, the ability to hit the ground running will be a testament to your tenacity, business savvy, ability to learn quickly, and trust in the process. Plus, you’ll get all the support you need from the team at Homewatch CareGivers®.

Whether you’re new to home care franchising or you’re already familiar with business ownership, there are several hurdles you may have to clear before you can be successful in this industry long-term. Fortunately, we’re here to provide some advice and guidance on how to overcome them.

1. Hiring Staff Amid Health Crisis

The challenge: According to the U.S. Board of Labor and Statistics, approximately 3,439,700 home health and care aides were employed in 2019. However, since then, the pandemic hit and changed the game for many franchise owners and staff. In a 2021 report, the Office of the Assistant Secretary for Planning and Evaluation reported that staffing shortages in the senior care franchise industry were “exacerbated by recruitment and retention problems, limited training and career advancement opportunities, and poor pay and benefits for these workers.” Much of these issues were already a challenge for franchisees but were highlighted due to the global health crisis.

The solution: Now that we’ve had over a year to acclimate, adjust, and readjust to the changes of COVID-19, franchisees are positioned for an influx of qualified health care employees. Our franchise network provides specific recruitment and hiring support so you can find skilled staff to help your franchise succeed. As a new franchisee, you have the marketing and recruitment tools at your disposal with our already established brand reputation.

2. Changing Rules and Regulations

The challenge: As a new franchise owner, you already have a lot to deal with, from learning new systems to acclimating to the culture of the franchise network. With all these responsibilities, you likely haven’t stopped to look at the changes happening in our government that will affect how you run your business. Our federal legislature is continuously enacting laws that can change the trajectory of the home care industry, but you’re just one person. How can you possibly keep up with the ever-changing rules and regulations that govern us?

The solution: We are members of national regulatory organizations—such as the Home Care Association of America (HCAOA)—at the forefront of legislative decisions for the home care industry. The HCAOA strives to give senior and home care agencies a voice and a say in federal and state legislation. As active members, we understand the importance of having a hand in making the laws and statutes that affect how franchise owners operate.

3. Health Care Revenue Sources for Clients

The challenge: Some experts assert that private pay services may become a less lucrative sector of home care franchising as people continue aging, getting sick, and becoming unable to pay for growing health costs. This may give insurance providers more leverage to exert pressure on care service fees. However, the government could decide to finance and support more in-home care offerings and create legislation to regulate the cost.

The solution: Our involvement in organizations like the HCAOA helps our franchise network stay privy to any changes that happen first so that you are always in the know and can plan accordingly. Additionally, our membership with the National Quality Forum (NQF) helps us advocate for healthcare quality. As a franchisee with us, you have the opportunity to contribute to our industry’s national agenda and make a difference for your clients.

4. State Licensing

The challenge: In some states, licensing is required to run a franchise. This is a challenge for many franchise owners because licensing regulations vary from state to state. Licensing has to be approached individually, as most franchisors award locations in different territories, meaning there isn’t a standard for licensing. Just as every franchise is unique, the licensing guidance and support presented must be customized for the individual territory.

The solution: The good news is that robust networks like ours have experience working with virtually all 50 states and understanding the licensing requirements for each. We are so well-versed in this sector that we have a plan of action and a team ready to assist you regardless of the territory you choose for your operations. Additionally, we provide all new franchisees with tools for obtaining licenses and getting approval within a few short months, so you can begin operating and changing lives.

5. Understanding & Managing Expectations

The challenge: Experienced entrepreneurs and business owners understand that growing a franchise is a “slow and steady wins the race” kind of journey. Success doesn’t come automatically, and those new franchisees expecting quick results may be disappointed regardless of brand recognition. It takes time to establish referral relationships and meaningful partnerships that help your business grow.

The solution: Many home care franchise systems don’t have an extensive enough timeline dedicated to helping franchisees understand what to expect as they become more acquainted with this new business world. Homewatch CareGivers has a 52-week training program that will provide you with virtually everything you need to grow, better understand the industry, and be a success.

Consistent Support from Homewatch CareGivers

While the industry is constantly in flux, we have built a proven system and data-driven models that help new franchisees learn and grow with us. We also want you to feel supported and confident, regardless of the challenges, that you can make a difference in your community with services that change lives for the better.

To get started learning about your new senior care franchise journey, call Homewatch CareGivers Franchise Opportunities, or fill out our form online.

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