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Investing in a franchise

A tested and proven financial model for starting a home care business.

Why invest in a franchise?

Launching a business from scratch without experience or a definite plan is extremely risky. Investing with a franchisor can overcome this issue as some, like Radfield, have spent years developing company-owned branches.

This means they have already experienced and overcome the trials and tribulations of operating a business in the sector, in this case, the home care sector.

This has allowed the creation of a franchise model that has been tested well beyond the traditional single-office pilot scheme many franchises are based on.

To help you develop a profitable business, a good franchisor will share their experience with you; enabling you to successfully craft a rewarding and achievable business plan fit for your local territory, circumstance and projections.

franchise investment graphi

How much does it cost to invest in a Radfield Home Care franchise?

The Radfield Home Care franchise opportunity requires a total investment in the region of £95,000, before any variable costs and the ongoing Franchise Management Fee is calculated at 5% (+ VAT) of your turnover. We also run a National Marketing Levy, which is 1% (+ VAT) of your turnover, every penny of which is reinvested back into marketing activities that benefit the whole network.

You will therefore require a minimum personal investment of approximately £30,000+ with various options available to you for any additional funding that may be needed. It is also very useful if you are able to take little or no drawings from your new business for at least the first 12 months.

We have working relationships with some of the UK’s biggest high street banks (including HSBC, Lloyds, Barclays and Natwest) who can lend up to 70% of your total investment and there are a number of government schemes designed to help new business startups too.

Franchise business returns

Radfield’s franchise partners typically achieve cash flow breakeven towards the end of their first year trading. On average, full return on investment takes place between two to two and a half years, with established franchise partners generating pre-tax (net) profit margins of circa 15%.

Opportunities to scale and diversify

Once your franchise is operating successfully, then you may want to expand. Some of our franchise partners choose to buy additional territories or there is the option to train other franchise partners for an additional revenue stream.

The over-65 age group is a rapidly growing sector and is expected to reach over 20% of the population by 2024. Positioned to service this demographic, Radfield franchise partners will benefit from the rise in the ageing population.

Although Radfield’s focus is on delivering care to the elderly, there is also the potential to expand through other age groups who need care in your community. Such as, people with learning disabilities, children with chronic illness and people who need palliative and end-of-life care.

*Disclaimer

All projected figures use our business experience, market research and financial history from operating offices. They only provide a demonstration of the levels of business that can be achieved. The figures are not intended as a representation, warranty or guarantee.

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Ed’s story

Ed’s story

After four years working in our National Office helping other people start their Radfield franchise, Ed decided it was time for him to start his own business.

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James’ story

James’ story

Just two years since launching his Radfield business, James and his team earned CQC’s highest rating.

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Our awards

Available territories

Get in touch with your local Radfield Home Care office today and find out more about the support we offer and the difference we can make.