When it comes to America’s elderly, living in a nursing home is an option and a trend that’s fading quickly. There are now an abundance of new options for those unable to live independently, and for franchises looking to provide solutions in the elderly and home care industry, the rewards are enormous.
According to census data compiled by Home Instead Senior Care, an estimated 36.8 million people, or 12.4% of the U.S. population, are 65 and older, a figure expected to double by 2026. Those older than 85 are projected to roughly double from 4.7 million in 2003 to 9.6 million in 2030.
Successful franchises are taking advantage of this graying of America, as savvy entrepreneurs react to the exploding demographic.
Last year, more than 3,700 franchised locations representing 60 different brands were on track to produce approximately $6.3 billion in revenue. And it is projected to grow over the next five years to $7.8 billion.
Street.com put out these numbers: The average annual cost of one nursing home resident is $69,715, they say the average annual cost of one assisted-living facility resident is $36,372 and in contrast 20 hours a week of home care services costs about $18,000.
These are attractive numbers for those interested in providing quality care for their loved ones and for those not enamored with the idea of placing them in nursing homes.
According to SeniorCareFranchiseInfo.org, “Over the next thirty years, the number of seniors 65 and older in the United States will double from 40 million to 80 million.”
The so-called “silver tsunami” is upon us, and franchisors and entrepreneurs are welcoming it with open arms.
After attending the recently concluded International Franchise Expo at the Jacob Javits Center in New York, Blackenterprise.com is putting the spotlight on franchise opportunities showcased at the expo that may have potential.
One franchise that showed promise is Amada Senior Care, who are based out of Southern California. Blackenterprise.com spoke with Tafa Jefferson, Chief executive Officer and franchisor with the franchise concept.
lot="/21868623726/site264.tmus/amp3" data-multi-size="320x50,300x250" data-multi-size-validation="false" rtc-config='{"vendors": {"prebidappnexuspsp": {"PLACEMENT_ID": "27198239"}}, "timeoutMillis": 500}'>Jefferson’s mother was a caregiver which is how he first became acquainted with the senior home care industry. He started Amada about eight years ago, but says he started his first company in the elderly care business nearly eighteen years ago. He has been hiring caregivers for more than a decade.
“The climate is highly, highly competitive but it is a very fragmented market there is not a true industry leader. You have a lot of franchisors that are in this space, multiple units cropping up all over the country.
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Taking their name from the Spanish word for beloved or loved, Amada says they are differentiating their brand from the others by “infusing technology into the home environment”. They have been in business as a franchisor just two years, but this is the first year they are opening up territories.
(Image: Thinkstock)“We’ve been getting a lot of positive feedback and the future looks very bright we are very excited. Right now we have about 27 units open across the U.S, we will probably close down at forty this year – and are looking at another forty to fifty next year. We want to have a very healthy, slow, sustained growth and want to make sure, ensure all our franchisees validate”.
Another way Amada is burrowing deeper into their niche? Helping provide solutions in the battered veterans care industry. The recent scandal at Veterans Affairs where the department was accused of falsifying data to disguise the lengthy and fatal waiting periods it
took for our nation’s bravest to see doctors put the Obama administration on notice. 40 United States veterans died as a result of the delays and it led to the resignation of VA Secretary Eric Shinseki.“We are very active in our community. We actually have a VA contract and we service a lot of the veterans. It’s a program we are happy to be a part of”.
They look to offer solutions by providing services to veterans in their homes.
“We come to them. So if they have the benefits that’s available to them through that program its expedited to our office and we service them within a matter of hours”.
As far as challenges for potential franchisees looking to take the plunge, Jefferson says, “The biggest challenge is getting staff. There is definitely no shortage of work that’s available but there’s definitely a shortage of folks that can provide the service. It’s just retraining and providing jobs within the community”.
And advice? “Get involved,” Jefferson says. “Find out all that you can, do your due diligence when you’re looking at your franchise system and specifically in the senior care market. Go ahead and look at the franchise business review, they did a special this year on all the franchises within our space. So do some homework and just really do a good job of kicking the tires.”