If you’ve started looking into franchise ownership, you’ve probably noticed that the numbers can get confusing fast. Franchise fees, total investment ranges, royalties, working capital, and a handful of other costs don’t always get explained clearly.
Let’s clear that up. Whether you’re comparing brands or seriously considering a senior care franchise opportunity, understanding what you’re paying for (and when) is one of the most important parts of making a smart decision. Here’s a straightforward look at how franchise fees work, what they cover, and what it really costs to get a senior care business off the ground.
Key Takeaways
Think of the franchise fee as your ticket into the system. It’s a one-time payment you make when you sign your franchise agreement, and it gives you the right to use the brand’s name, business model, and operating know-how.
In most cases, that fee helps cover:
It usually doesn’t cover the day-to-day costs of opening and running your business, like rent, insurance, equipment, and payroll. Those fall under your broader startup budget.
The initial franchise fee for Touching Hearts at Home is $49,500.
That fee gives you a proven business model, plus comprehensive training, ongoing corporate support, marketing help, technology, and access to a network of fellow franchise owners. Before you open, you’ll complete a one-week initial training program. Franchisees are responsible for their own travel, lodging, and living expenses during training, so be sure to factor those into your budget.
Training covers everything from hiring and retaining caregivers to operations and management.
You’ll also get help with licensing and setting up your business entity, a customized office website, training on WellSky scheduling and billing software, and marketing resources tailored to your local area. You can learn more about the full range of franchise support systems available to owners.
Each owner receives a Protected Territory, subject to the terms of the Franchise Agreement. Territories are chosen based on factors like local senior population trends, proximity to healthcare facilities, and labor availability. The Franchise Agreement and the FDD spell out how the Protected Territory is defined and what rights come with it, so review both carefully. You can browse the available franchise territories to see where the brand is currently growing.
This is where many first-time buyers get tripped up. Franchising fees and royalties are very different.
You pay the franchise fee once, upfront, when you join the system.
Royalties are ongoing payments, usually calculated as a percentage of your revenue. They fund ongoing support from the franchisor, like coaching, technology updates, research and development, and brand-building. The Touching Hearts at Home Royalty/Service Fee is 6% of Gross Revenues, generally paid semi-monthly. A reduced 3% start-up rate may apply under certain conditions, so review the FDD for the specific terms.
Some franchise systems also require contributions to a marketing or brand fund, so review the FDD to understand every ongoing fee before you sign. Think of it this way: the franchise fee gets you in the door, and royalties keep the lights on behind the scenes.
Your total senior care franchise start up cost includes the franchise fee plus everything else you need to open your doors and operate during the early months.
At Touching Hearts at Home, the total estimated initial investment ranges from $84,600 to $153,700, depending on your location, real estate, and operating expenses. Here are some of the main franchise startup fees and costs to plan for, based on Touching Hearts’ published estimates:
The Franchise Disclosure Document lays out the full list of startup costs. For a closer look at how these numbers fit together, check out the complete Touching Hearts franchise cost breakdown.
One reason senior care can be more affordable to start than many other franchises is that it doesn’t require a retail storefront, a commercial kitchen, or a large inventory. Most owners start with a small office and invest in people, systems, and local marketing.
Even with a detailed budget, some costs tend to catch new owners off guard. Keep these in mind:
Most franchise owners don’t pay for everything out of pocket. Common funding options include:
To qualify for Touching Hearts at Home, candidates typically need at least $75,000 in liquid capital, a net worth of $300,000 or more, and a minimum credit score of 675. Veterans should also ask about the available veterans’ discount. Money isn’t the only factor, though. Touching Hearts looks for people with integrity, compassion, and a genuine drive to serve others, and you don’t need a medical background.
Read more about the ideal candidate profile to see whether it sounds like you.
Before you sign on with any franchise, it’s worth asking a few direct questions:
The Federal Trade Commission’s Consumer’s Guide to Buying a Franchise is also a helpful resource. It explains what’s included in the FDD and notes that franchisors must give you the document at least 14 days before you sign a contract or pay any money.
A franchise fee is more than just a number on a page. It’s your entry into a business model, a brand, and a support system that’s meant to help you succeed. The key is understanding how that fee fits into your total startup budget, what you’ll pay over time, and what you get in return. Take your time, ask plenty of questions, and make sure the numbers work for your goals before you commit.
It varies by brand. At Touching Hearts at Home, the initial franchise fee is $49,500, with an estimated total initial investment of $84,600 to $153,700.
A franchise fee is a one-time, upfront payment for the right to join the franchise system. Royalties are ongoing payments, usually a percentage of revenue, that fund continued support from the franchisor. At Touching Hearts at Home, the Royalty/Service Fee is 6% of Gross Revenues, generally paid semi-monthly, with a reduced 3% start-up rate that may apply under certain conditions described in the FDD.
Yes. In addition to the initial franchise fee, owners pay a 6% Royalty/Service Fee on Gross Revenues, generally semi-monthly. Owners also cover startup costs like licensing, insurance, office equipment, and working capital. The Franchise Disclosure Document details every fee.
Plan for business licensing, insurance, office space, technology and equipment, training-related costs (including your own travel, lodging, and living expenses), initial marketing, and working capital to cover several months of operating expenses while your business grows.
Eric Redden serves as the Director of Franchise Development for Touching Hearts at Home. With years of experience supporting both emerging and established franchise brands, Eric helps entrepreneurs discover meaningful paths to business ownership. He is committed to guiding new franchise owners with clarity, confidence, and heart.
