Visiting Angels is for sure one of the best senior care agency services in the United States, with hundreds of clinics across the United States. Brand awareness is extremely high, making the brand attractive to entrepreneurs. Visiting Angels is currently franchising, and they have an extensive franchise program that aims to help the franchisees succeed.
But would all the cost and effort be worth it, or should you avoid it? In this article, we will aim to cover all the details about Visiting Angels and their franchise system. You will learn about costs, expected profit, training offered, and all other related information.
About Visiting Angels and Visiting Angels History
Visiting Angels is one of the top non-medical elderly home care franchise chain agencies in the United States. The company was founded in 1992, and its aim was to offer personalized care to the elderly and build relationships with their clients.
They provide home care services for the elderly, from personal care to companion care. Their system can be hourly, overnight, or on a 24-hour basis.
They started to franchise in 1998 and quickly grew in numbers nationwide. They now have close to 700 clinics.
Visiting Angels has even been listed in Entrepreneur’s Franchise 500 list several times. They are still franchising, and they have a solid franchise system that focuses on teaching you the business and growing it in a short time.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $125,460-$171,150 |
| Franchise | YES |
| Franchising Since | 1998 |
| Franchise-Fee | $51,950-$89,950 |
| Royalty-Fee | 3.5% |
| Liquidity | $110,000 |
| Estimated Outlets | 692 |
How Much Does it Cost to Open a Visiting Angels Franchise?
The average initial investment for one Visiting Angels franchise is between $125,460 and $171,150. This expected cost includes the franchise fee that varies between $51,950 and $89,950 and all other related startup costs from equipment to payroll.
Depending on the size and location of your clinic, the real numbers might be outside of this range. The number is the average of all franchises that have opened and the expectations from the franchisor.
Franchise Requirements
You do not need to have experience in the field or in the industry as a manager. There is no necessity to spend certain years in any business, either. They aim to teach you everything with their training program.
However, you do need to possess a net worth of at least $110,000 and liquidity of another $110,000. These two are two crucial requirements for your application.
Visiting Angels Profit & Revenue
The company had $39.3 million in annual revenue in 2022, as per the latest financial report. When all the expenses were removed, the company didn’t make any profit. They had a net loss of $745,434. With the retained earnings at the end of the year, their net profit goes up to $2 million.
Overall Sales
According to the estimations, an average Visiting Angels franchised clinic made $1.25 million in sales annually in 2022. This shows a 10% increase from the previous year, which was $1.14 million.
The exact number is not available, so the estimations are roughly based on dividing the total franchise stores’ revenue by the number of franchised stores.
Visiting Angels Franchise Revenue & Profit
As per sources, Visiting Angels franchise owners make $1,256,000 in annual sales on average.
If we assume a profit margin of 15% as per the industry standard, then we can find that Visiting Angels franchise owners make $188,400 in annual net profits on average.
This is how we calculated this amount:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 1256000.00 |
| Rent | 10.63% | (133450.00) |
| Insurance | 5.31% | (66725.00) |
| Salaries | 21.25% | (266900.00) |
| Franchise Royalty Fees | 5.31% | (66725.00) |
| Utilities | 2.13% | (26690.00) |
| Cost of Goods Sold (COGS) | 26.56% | (333625.00) |
| Labor (Variable) | 13.81% | (173485.00) |
| Total (Expenses) | 85.00% | (1067600.00) |
| Net Profit | 15.00% | 188400.00 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Visiting Angels Franchise Payback Period
With an investment of $148,305 and an estimated 15% profit margin on the average revenue, the yearly profit would be $188,400.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Investment / Yearly Profit = $148,305/ $188,400= 0.78 years
Based on these figures, it will take approximately eight-twelve months to pay back the initial investment for Visiting Angels franchise. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Visiting Angels Franchise Failure Rate
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2016 | 508 | 528 | +20 |
| 2017 | 528 | 563 | +35 |
| 2018 | 563 | 576 | +13 |
For the Franchised outlets:
- In 2016, the growth rate was (20)/508×100≈3.93%
- In 2017, the growth rate was (35)/528×100≈6.62%
- In 2018, the growth rate was (13)/563×100≈2.30%
According to the above-mentioned data, there is no failure rate for Visiting Angels franchised outlets as the outlets at the end of the year has increased as compared to the outlets in the start of the year during the span of 3 years.
Overall, we can see that the Visiting Angels franchise has expanded in the years 2016-2018 showcasing growth between 2.30% and 6.62%.
Training and Support
The initial training program before the store’s opening is for 45 hours, 5.5 days, which will teach the franchisee how to open and operate the franchised location. The initial training will be in the company’s training location.
As part of Visiting Angel’s support program, there might be additional training, courses, seminars, or conferences post-opening. Additionally, they also help before and after opening to make sure you can open your store and operate it successfully by staying in touch with you.
Terms of Agreement and Renewal
The initial franchise agreement lasts for ten years. A renewal is possible if both sides are in good standing and the franchisor approves the renewal. This renewal can be for additional 10-year terms.
Obligations and Restrictions
The franchisee or an appointed general manager who successfully completed the initial training must be present in the daily operations of the store. This person will become the contact person for the franchised location and must spend full-time in the store.
The franchisee is obligated to offer products and services only approved by the franchisor. Also, the franchisee must offer all the services or products that the franchisor mentions in the manual for the clinic. The location of the franchised store must be a commercial location.
Financial Assistance
Visiting Angels does not provide any kind of direct financial assistance. However, upon request, they might assist the franchisees in finding the necessary financing through their third-party financial lender relationships. They will only help the franchisee to get any kind of required document to get the financing from the lender.
Potential franchisees interested in care service providers can investigate opportunities with A Place At Home Franchise.
Visiting Angels Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Home Instead | $54,000 | 4-7% | $98,000-$125,000 |
| BrightStar Care | $50,000 | 5.25% | $111,095-$195,875 |
| Visiting Angels | $51,950-$89,950 | 3.5% | $125,460-$171,150 |
Conclusion
Visiting Angels is one of the biggest non-medical care homes in the United States that offers flexible services to their clients. While providing a service, they also build a personal relationship with them, making the company and the brand different than its competitors.
The company hasn’t been franchising for too long. However, it still has a very supportive franchise system focusing on providing all the information necessary to the franchisees. With the estimated annual revenue of the stores and the total cost to open one, Visiting Angels seems like a decent opportunity to consider.
FAQ
How much does a Visiting Angels franchise cost?
The cost varies between $125,460 and $171,150, which includes all kinds of startup fees, from the franchise fee to other important costs.
What is the Visiting Angels franchise fee?
The franchise fee is between $51,950 and $89,950. This fee is paid in a lump sum when you sign the agreement.
How much does a Visiting Angels store make?
According to the estimations, a franchised Visiting Angels store makes $1.25 million annually from sales. These estimations come from dividing the total revenue of the franchised locations by the number of franchised locations. There is no information on the profitability.
Sources