When starting up a senior care agency, it might sound appealing to sign on with a homecare franchise. There are a few questions you should ask yourself before considering this option, because you may find that the answers surprise you.

" Does the homecare franchise fit my state's qualifications and requirements for a license?

Many franchises don't consider the regulations of individual states in their business models. This can translate to many revisions in the application process to the State and possibly a long delay in getting your State license. If you have any questions at all about a franchise's conformity to state regulations, you shouldn't sign on with them.

" What does the homecare franchise charge in start-up costs and royalties?

Every company is in business to make a profit. This is no less true in the more altruistic fields, such as senior care. Every business wants to make a profit, but the question you should ask is if the long term profit the franchisor wants to make from your hard work using their name is worth it. Many of the start-up costs are not necessary, e. g., outside office plus expenses to keep up the image of the franchise. Many independent homecare agencies work from home very successfully. It's all about superior service, not image.

" What kind of start-up assistance can I get from the homecare franchise?

In most cases, you can expect virtually no assistance in the area of state licensing and hands-on assistance. Referencing the question of state qualifications, most franchises don't get involved in the licensing process since it varies from state to state. You also can be assured that you're on your own in compliance with state laws and your annual license review.

" To what franchise regulations would I have to conform, and could they negatively impact my business?

There is a very good chance that you would have to conform to a very strict business model, restricted territorial area, typical franchise marketing strategies and high start-up costs with years of royalty fees. This might be appealing for many people, but it can also be a tremendous handicap. The essential problem is that while you wouldn't be responsible for the business decisions in setting up your agency, they have been cut in stone and likely made by an entrepreneur who doesn't even live in your state. Ultimately, all of the responsibility lies with you as you live with their plan.

Territorial ranges are an important issue in home care. These are often formed not by demographic information of the senior population, but by a more arbitrary process or zip code. Also, once your territory is set, it's usually permanent. By joining a homecare franchise, you could completely miss out on where the elderly actually live.

Marketing strategies are definitely something else that could suffer by conforming to a global standard, rather than a local one. To reach the people that you're marketing to, you have to know who they are and what they need. With most franchisee plans, the marketing techniques look the same and are very restrictive. Marketing success is all about standing out from the norm and changing strategies in a timely manner without having to wait on the slim chance of franchisor approval for something unique. You're simply not going to get the right strategy for Georgia in a board room in Los Angeles. It may, in fact, insult your potential clients.

When it comes down to it, you're better off hiring a consulting firm to help you start your homecare agency rather than purchasing a franchise. You can receive far better assurances that you will have a good business structure, innovative marketing strategies, compliance with State regulations and a State license with the first submission. There will be a low consulting fee relative to the high franchise start- up costs and you independently own your company. You have no years of royalty fees and you profit from your hard work. According to a major study (Timothy Bates, Woodrow Wilson Center, Washington, D. C.), the franchise route to self-employment is associated with higher business failure rates and lower profits than independent business ownership. This study showed that young firms starting without the benefit of a parent franchisor were significantly more profitable than the franchise firms. The right consulting firm will have a thorough understanding of the state licensing process and work with you throughout the start up and beyond.