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What are the Startup Costs for a Home Health Care Franchise?

startup costs for brightstar franchise

One of the most common questions for prospective franchisees is how much it is going to cost to get their home health care agency up and running. Due to the industry’s explosive growth, home health care franchises are among the most profitable.

The initial investment for a BrightStar Care location ranges between $94,618 and $153,263, depending on variables such as real estate, labor costs in your market, and licensure within the state you will be operating.

Outside of initial franchise fees, these are the main buckets that startup costs for a home health care franchise can be divided into the following:

Agency Office Space

One of the biggest expenses for home health care franchisees is purchasing and running an office location. Costs that make up this section include leasing a space, furnishing your office, technology infrastructure, signage and utilities.

Once you have found the perfect location for your home health care agency, you will receive operational and technological support for your business, including proprietary cutting-edge health care technology systems, as a BrightStar Care franchisee.


Initial marketing costs for a BrightStar Care home health care franchise include brochures, business cards and any other marketing materials. These expenses are necessary in order to ensure the growth and success for your business once you open your doors.

Not experienced with marketing? Not to worry – franchisees benefit from marketing support and expertise from BrightStar Care to assist in making their marketing efforts successful.

Licenses, Permits and Accreditation

The licensing and permit requirements for home health care businesses vary from state to state, noting that there are now only 8 states which do not require a license1 to provide services. Even if your state does not require a home health care agency license, there will still be other fees associated with obtaining your business license and other fees to enable you to start up and operate your business.

All of the licenses and permits required to start a home health care agency can be difficult to navigate alone.   While you are responsible for obtaining and securing the required licensure and permits, BrightStar Care franchisees receive guidance to make sure that they clearly understand how to proceed when it comes to licensure.

In addition to licenses and permits, BrightStar Care franchisees are required to obtain Joint Commission Accreditation, which sets us apart from any other home health care franchise system and ensures that BrightStar Care franchisees offer A Higher Standard of Care, have a competitive edge in the marketplace, and receive recognition from hospitals, insurance providers and other medical organizations.

Staffing Expenses

Another factor that sets BrightStar Care apart is that all franchisees have a Registered Nurse who acts as Director of Nursing to manage and oversee patient care. In addition to this key team member, you will need to hire screened and licensed caregivers to provide your patients with the highest levels of care.

Also included in this category are insurance, worker’s comp insurance, and training and travel expenses for yourself and your employees.

Finding experienced caregivers and managing human resources operations can be challenging for those without recruiting and human resources experience. BrightStar Care’s Recruiting and Retention Team helps franchisees know how to find qualified caregivers and provide recommendations on how to organize their HR operations and resources to provide individual guidance and support.

Now that you have a breakdown of what makes up the startup costs for a home health franchise, you might be wondering what you can expect as a return on your investment. Based on Item 19 of our FDD, the average revenue for BrightStar Care locations that operated for all of 2017 was $1.68 million. In addition, our top quartile of franchisees averaged $3.29 million in revenue.

This is made possible by BrightStar Care’s ability to offer a full continuum of care and multiple revenue streams, our growing National Accounts program, and the ever-growing demand for home health care services. The home health industry will only continue to grow, so now is the ideal time to start your own home health care franchise.

To learn more about the costs and requirements of starting your own BrightStar Care franchise, download our free franchise executive summary.

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