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 is a non-medical senior home care franchise providing companionship, personal care, and homemaker services to seniors in their homes. Founded in 1994 in Omaha, Nebraska, by Paul and Lori Hogan, Home Instead pioneered the home care franchise model and remains one of the world's largest home care franchise networks, with approximately 1,200 territories across the US and internationally. In 2021, Home Instead was acquired by Honor Technology, a technology-enabled home care platform, in a deal that merged Honor's care management technology with Home Instead's franchise infrastructure. The acquisition has accelerated technology integration — Home Instead franchisees benefit from Honor's care matching platform, scheduling technology, and caregiver management tools that improve operational efficiency at scale. Like Visiting Angels, Home Instead's model is service-based and office-operated, keeping capital requirements and real estate costs low.
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:
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.
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.
Home Instead is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:
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:
Home Instead loans are typically SBA 7(a) at 10-year terms covering franchise fee + office setup + technology + insurance + working capital. After 10–20% equity injection at the $125K–$130K range, loan amounts run $100K–$117K. A working capital line of credit alongside the term loan is strongly recommended to manage the weekly caregiver payroll vs. monthly client billing float gap — this is the primary operational financing risk in home care. See line of credit vs. business credit card for the revolving credit tradeoff.
ClearValue Lending works with senior care and home care franchise operators on SBA and working capital financing structures. Apply at Find my match. Your file routes to one matched lender.
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.
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.
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.
Home Instead charges a 5% royalty on net sales plus a 2% advertising fund contribution, for a combined 7% of net sales.
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.
SBA SOP 50 10 7 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 7.
Borrowers must inject equity from personal funds — not borrowed for this purpose — per SBA SOP 50 10 7. 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.