Guide 8 min read Updated May 6, 2026

Cost to Start a Home Instead Franchise in 2026

Home Instead franchise startup costs run $125K–$130K for a non-medical senior home care territory. Home Instead operates approximately 1,200 territories globally and is one of the world's largest home care franchise networks. Honor Technology acquired the brand in 2021.

Home Instead franchise costs at a glance

Total investment	$125,000–$130,000
Franchise fee	$52,500
Royalty	5%
Ad / marketing fee	2%
Liquid capital required	$100,000
Net worth required	$150,000

Source: Home Instead Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.

Key takeaways

Total estimated startup cost: $125K–$130K (non-medical senior home care — office-based, no physical build-out)
Franchise fee: $52,500
Ongoing royalty: 5% of net sales; advertising fund: 2%
Net worth requirement: $150K+; liquid capital requirement: $100K+
~1,200 territories globally; Honor Technology parent (acquired 2021)

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Total startup cost breakdown

Per the current FDD, total estimated initial investment for a Home Instead franchise runs $125,000–$130,000. The narrow range reflects the standardized, office-based format with minimal variation in setup costs across markets:

Franchise fee: $52,500
Office lease and setup: $5,000–$15,000
Technology (scheduling software, CRM, Honor platform integration, computers): $5,000–$12,000
Insurance (general liability, workers' comp, professional): $5,000–$15,000
Marketing and launch campaign: $5,000–$10,000
Training and travel: $3,000–$7,000
Working capital: $20,000–$35,000
Miscellaneous licenses and pre-opening: $5,000–$10,000

Ongoing fees and royalty structure

Home Instead franchisees pay a 5% royalty on net sales plus a 2% advertising fund contribution — for a combined 7% of net sales. The advertising fund supports Home Instead's national brand campaigns, digital marketing, and caregiver recruitment advertising — a meaningful cost category in home care where caregiver supply is consistently tight. Honor Technology's platform integration also provides franchisees with access to centralized care matching and scheduling infrastructure that reduces individual operator technology costs.

Net worth and liquid capital requirements

Home Instead requires prospective franchisees to demonstrate net worth of $150,000 or more and liquid capital of $100,000 or more. The liquid capital requirement is higher than comparable home care concepts, reflecting Home Instead's emphasis on franchisee stability during the ramp-up period — territory revenue builds slowly as the caregiver roster and client relationships develop. Home Instead evaluates candidates on leadership and management aptitude, community engagement capability, and financial preparedness. Healthcare or social services experience is helpful but not required.

Financing options

Home Instead is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:

SBA 7(a) loan: Covers franchise fee, office setup, technology, insurance, and working capital. Home Instead's narrow investment range — $125K–$130K — is entirely within SBA 7(a) parameters.
Working capital line of credit: Critical in home care — caregiver payroll runs weekly while client billing is monthly, requiring a credit line to bridge the float gap as the territory scales.
SBA Microloans: For franchisees with the lowest capital requirements, SBA Microloans can fund a portion of startup costs.
ROBS (Rollover for Business Startups): Some prospective franchisees use 401(k) or IRA funds to capitalize a Home Instead territory — this is a specialized financing structure that requires professional ERISA counsel.

What lenders look for in a Home Instead franchise application

Home Instead is on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. At $125K–$130K, SBA 7(a) is the standard financing path. Underwriters evaluate:

DSCR 1.25×–1.35× on territory service revenue pro forma: SBA SOP 50 10 8 sets the minimum DSCR at 1.15×; SBA participating lenders for franchise startups typically require 1.25×–1.35×. For Home Instead, lenders model territory revenue from caregiver hours billed minus the 7% combined fee load (5% royalty + 2% ad), caregiver payroll, office overhead, and insurance. Revenue builds slowly as the caregiver roster and client referral relationships develop — lenders stress-test the ramp trajectory.
Equity injection 10–20% of project cost: Per SBA SOP 50 10 8, borrowers must contribute equity from personal funds. At $125K–$130K, equity injection runs $12.5K–$26K — accessible thresholds relative to Home Instead's $100K liquid capital requirement.
Working capital to bridge caregiver payroll float: In home care, caregiver payroll runs weekly while client billing (including Medicaid/VA reimbursement) is monthly — creating a consistent float gap. Lenders require sufficient working capital or a credit line to bridge this gap as the territory scales.
Territory demand and referral source plan: Lenders assess the geographic territory for senior population density and competition. A business plan demonstrating hospital discharge planner, geriatric care manager, and senior center referral relationships de-risks the ramp-up projection.
Community management and business development experience: Home Instead requires strong community engagement capability. Lenders assign lower risk to operators with prior service business, healthcare sales, or franchise management history.

Apply at ClearValue Lending

ClearValue Lending works with senior care and home care franchise operators on SBA and working capital financing structures. Start at small business financing or apply at Find my match. Your file routes to the funding partners best matched to your file.

Sources

Home Instead is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans finance franchise startups including franchise fees, office setup, and working capital for home care service concepts. — SBA 7(a) Loan Program
Qualifying technology and office equipment placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
All Home Instead franchise cost and fee data derives from the current Franchise Disclosure Document (FDD) filed under the FTC Franchise Rule. — FTC Franchise Rule — Buying a Franchise: A Consumer Guide

Frequently asked questions

How much does a Home Instead franchise cost in 2026?

Per the current FDD, total estimated initial investment runs $125,000–$130,000. The franchise fee of $52,500 is the largest single component. The narrow range reflects Home Instead's standardized, office-based setup across markets.

Who acquired Home Instead?

Honor Technology acquired Home Instead in 2021. Honor is a technology-enabled home care platform; the acquisition merged Honor's care matching and scheduling technology with Home Instead's franchise network infrastructure.

What is the difference between Home Instead and Visiting Angels?

Both provide non-medical senior home care and are among the largest home care franchise networks in the US. Home Instead has a larger global footprint (~1,200 territories vs. ~600 for Visiting Angels) and a higher franchise fee ($52,500 vs. $45,000). Visiting Angels uses declining royalty tiers with no advertising fund; Home Instead charges a flat 5% royalty plus a 2% ad fund.

What is the Home Instead royalty rate?

Home Instead charges a 5% royalty on net sales plus a 2% advertising fund contribution, for a combined 7% of net sales.

Can I finance a Home Instead franchise with an SBA loan?

Yes. Home Instead is on the SBA Franchise Directory. SBA 7(a) covers franchise fee, startup costs, and working capital. A separate working capital line of credit is recommended to manage the caregiver payroll-to-client billing float gap.

What DSCR do lenders require for a Home Instead franchise SBA loan?

SBA SOP 50 10 8 sets the minimum global DSCR at 1.15× — projected net cash flow must cover all debt obligations at 1.15× or better. Most SBA participating lenders require 1.25×–1.35× for franchise startups. For Home Instead, lenders build the DSCR from territory service revenue — caregiver hours billed at market rates — net of the 7% combined fee load (5% royalty + 2% ad), caregiver payroll, and office overhead. Revenue builds slowly as referral relationships develop, so the ramp-up projection and working capital buffer are central to underwriting. Source: SBA SOP 50 10 8 (https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs).

How much equity injection is required for a Home Instead franchise SBA loan?

Borrowers must inject equity from personal funds — not borrowed for this purpose — per SBA SOP 50 10 8. For Home Instead's $125K–$130K range, equity injection runs $12.5K–$26K (10–20% of project cost). The relatively low absolute dollar amount makes this one of the more accessible equity injection requirements in franchise SBA lending. Equity is documented at closing with bank statements showing funds seasoned for 60+ days.

How does the caregiver payroll float gap affect Home Instead financing?

In home care, caregiver payroll runs weekly while client billing — including Medicaid/VA reimbursement — is monthly, creating a consistent cash-flow gap as the territory scales. Lenders expect this float to be bridged with a working capital line of credit alongside the SBA 7(a) term loan, not absorbed entirely by the initial working capital allocation.

Summary:

This article is for educational purposes and is not financial, legal, or tax advice. Rates, fees, qualification requirements, and product availability are illustrative ranges that vary by lender, market conditions, and individual business profile. ClearValue Lending is a funding platform; all financing is subject to lender partner approval and terms. Always read your contract end-to-end and verify specific numbers before signing.

https://clearvaluelending.com/franchises/home-instead/cost-to-start

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