Home Care Franchise vs. Starting Your Own Agency: 2026 Costs Compared
Franchise fees, royalties and reported revenue from the 2026 disclosure documents of six major home care franchises, next to what an independent agency pays instead.
Key Takeaways
- Major home care franchises charge a $49,500 to $55,000 initial fee and a 5% to 6% royalty, plus a brand or marketing fee.
- Total opening investment in their 2026 filings ranges from about $92,000 to $350,000.
- Reported average revenue for established franchises runs $1.3M to $2.8M a year, but first-year offices often bill under $500,000.
- Most of these franchisors choose your software and give no exclusive territory; an independent owner keeps every dollar of royalty and picks every system.
- Federal law gives you 14 days with the disclosure document before you can sign or pay.
Informational only, not legal or financial advice. Fees and figures are from each franchisor's 2026 FDD and change every year; read the current FDD before deciding.
Franchise fee calculator
What you would pay the franchisor, using each brand's 2026 FDD fee terms.
Paid to Home Instead over 10 years
$1,024,000
- Initial fee
- $54,000
- Ongoing fees per year
- $97,000 (7.5%)
5% royalty, 2% marketing fund, $500/month technology fee. Leaves out minimum royalties, required local marketing and software paid to vendors. Home Helpers is left out because its royalty steps down by revenue tier. An independent agency pays none of these fees.
How much does a home care franchise cost in 2026?
Expect a $49,500 to $55,000 franchise fee, $92,000 to $350,000 to open, and roughly 6% to 9% of revenue in ongoing fees.
| Brand (2026 FDD) | Initial fee | Total to open | Ongoing fees |
|---|---|---|---|
| Home Instead | $54,000 | $92,640 to $350,550 | 5% royalty, 2% marketing fund, $500/month technology |
| Right at Home | $49,500 | $94,330 to $176,239 | 5% royalty, 2% then 1% brand fee, $2,100/year technology |
| Comfort Keepers | $55,000 | $119,560 to $190,700 | 5% royalty, brand fund up to $802.89/month |
| BrightStar Care | $50,000 standard | $101,464 to $217,486 | 5.25% royalty, 2.5% marketing, 1% technology |
| Griswold | $49,500 | $99,600 to $185,600 | 5% royalty, 1% brand fee |
| Home Helpers | $49,900 | $120,750 to $175,250 | 6% royalty falling to 4% as revenue grows |
These figures come from each brand's 2026 Franchise Disclosure Document (FDD) as filed with the Minnesota franchise registry, Items 5 through 7. Several brands also set minimum royalties and required local marketing spend, which the table leaves out.
How much revenue do home care franchises report?
Established franchise offices report average annual revenue of about $1.3 million to $2.8 million, while first- and second-year offices report far less.
| Brand | Offices counted | Average | Median |
|---|---|---|---|
| Home Instead (gross sales, 2025) | 611 | $2,750,876 | $2,352,451 |
| BrightStar Care (2025, includes skilled care) | 207 | $2,413,076 | $1,943,606 |
| Griswold (2025) | 59 | $2,048,633 | $1,492,691 |
| Home Helpers (2025) | 173 | $1,973,237 | $1,122,828 |
| Right at Home (net billings, 2025) | 390 | $1,836,498 | $1,334,579 |
| Comfort Keepers (year ending Aug. 2025) | 600 | $1,277,857 | $857,010 |
Revenue is not profit
These Item 19 numbers are revenue before caregiver wages, which are most of a home care agency's costs. Royalties are charged on revenue, not profit.
Most of these systems are mature: about two thirds of Home Instead's reporting offices have operated 21 years or more. Ask each franchisor for results from offices that opened in the last five years, and call those owners.
What does it cost to start an independent home care agency?
An independent agency pays no franchise fee or royalty, but still needs a state license, insurance, working capital and its own software and marketing.
State license
Texas charges $2,625 for a three-year license; California charges $5,603 every two years.
Insurance
Right at Home budgets $7,000 to $12,000 for first-year premiums, before workers' compensation.
Working capital
Right at Home's FDD estimates $17,000 to $40,000 for the first three months.
Software and marketing
You choose and pay for scheduling, EVV, billing and payroll tools, plus every lead you generate.
License fees come from the Texas HHSC and the California Department of Social Services. Our state-by-state guide to starting an agency lists licensing steps everywhere else.
The royalty math
At $1.5 million in annual revenue, a 5% royalty plus a 2% brand fee is $105,000 a year that an independent owner keeps.
What do you give up with a home care franchise?
Many franchisees give up territory exclusivity, their choice of software and the right to compete in their area for up to two years after leaving.
| Brand | Exclusive territory? | Required software |
|---|---|---|
| Home Instead | No, per Item 12 | WellSky or Honor's Care Platform |
| Comfort Keepers | No, per Item 12 | Viv Technologies |
| Right at Home | No, per Item 12 | Franchisor's required operating software |
| Griswold | No, per Item 12 | Designated vendor (WellSky listed) |
| BrightStar Care | Protected territory | Its own Athena Business System |
| Home Helpers | Exclusive by ZIP code | WellSky |
Non-compete after you leave
Visiting Angels and Comfort Keepers restrict you for two years; BrightStar for 24 months.
Software you can't switch
If the franchisor's system is slow or costly, you usually cannot move to another one.
What you get in return
A known brand, training, a playbook and other owners to learn from.
Resale rules
Transfers need franchisor approval and often a transfer fee. Item 17 lists the terms.
Should you buy a home care franchise or start your own agency?
Buy a franchise if you need a playbook and brand more than margin; go independent if you can market locally and want full control.
A franchise fits if
You are new to home care, want structured training, and value a recognized name with referral sources.
Independent fits if
You have care or operations experience, local relationships, and want to keep royalties and choose your systems.
- 1
Price both paths over ten years
Use the calculator above with a realistic revenue path, not the system-wide average.
- 2
List what the brand must replace
Write down which franchise services you could buy or build yourself: training, marketing, software, policies.
- 3
Test your local demand
Count referral sources, competitors and Medicaid or private-pay demand in your service area before choosing either path.
Independent owners can borrow much of the franchise playbook. Our guides to writing a home care business plan and getting home care clients cover two of the biggest pieces.
What should you check before signing a franchise agreement?
Read the whole disclosure document during the 14-day federal waiting period, then verify Items 19 and 20 with current and former owners.
- 1
Use the 14-day window
The FTC Franchise Rule requires the FDD at least 14 calendar days before you sign or pay anything.
- 2
Read Item 20
It lists openings, terminations, transfers and closures for three years, plus contact details for current and former franchisees.
- 3
Call former owners
Ask why they left, what they really netted, and whether the territory supported the business.
- 4
Have a franchise attorney review
Focus on the term, renewal, transfer, non-compete and minimum royalty terms.
Read the FTC's guide first
The FTC's consumer guide to the Franchise Disclosure Document explains each of the 23 items in plain language.
Frequently Asked Questions
How much does it cost to open a home care franchise?
In their 2026 disclosure documents, major home care franchises estimate a total initial investment from about $92,640 (Home Instead's low end) to $350,550 (its high end). Most brands fall between roughly $95,000 and $230,000, including a franchise fee of $49,500 to $55,000.
What royalty do home care franchises charge?
Most charge 5% of revenue, BrightStar charges 5.25% and Home Helpers starts at 6% and falls to 4% as revenue grows. Brand or marketing fund fees of 1% to 2.5% and technology fees come on top.
Is a home care franchise more profitable than an independent agency?
Not automatically. A franchise may grow faster with its brand and training, but it pays royalties and brand fees on every dollar of revenue. An independent agency keeps those fees but must build its own brand, systems and referral network.
Do home care franchises require specific software?
Most do. Home Instead requires WellSky or Honor's Care Platform, Comfort Keepers uses Viv Technologies, Home Helpers uses WellSky and BrightStar Care uses its own Athena Business System. Independent agencies choose their own.
How long do I have to review a franchise disclosure document?
The FTC Franchise Rule requires the franchisor to give you the Franchise Disclosure Document at least 14 calendar days before you sign a binding agreement or pay any money.
Sources
- 1.Minnesota Department of Commerce CARDS: 2026 franchise registrations (Home Instead, Right at Home, Comfort Keepers, BrightStar Care, Griswold, Home Helpers FDDs) (accessed October 29, 2026)
- 2.16 CFR 436.2: Franchise Rule disclosure timing (accessed October 29, 2026)
- 3.FTC: Franchise Fundamentals, a deep dive into the Franchise Disclosure Document (accessed October 29, 2026)
- 4.Texas HHSC: Home and Community Support Services Agency licensing fees (accessed October 29, 2026)
- 5.California Department of Social Services: Home Care Services application fees (accessed October 29, 2026)
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