Investing in a franchise

Why invest in a franchise?

There is always a risk in launching a new business from scratch, even more so if you don’t have previous experience or a clear strategy and definite plan.

Starting your own business by investing with a franchisor can help to reduce some of this risk and also provide a ready-made model, process, brand and support network.

At Radfield we have spent years developing our business model, building our brand, designing training programmes, investing in innovative new technology, and working with our Franchise Partners to launch and grow their businesses.

Think of this as your fast-track to home care business success with Radfield. We’ve made big investments over decades – the Radfield brand has an unrivalled 40 years’ experience in the UK care market – and now we can share all the benefits of our designing, learning and refining with you.

When you invest in a Radfield franchise, you get access to a stable, well-established franchisor, with unrivalled experience in the UK care market. You also get access to a business model that’s financially secure and proven to work in many different market conditions (tested well beyond the single-office pilot scheme many franchises are based on). And you get access to the highest level of tailored business support every step of the way. That’s just a few reasons why we’re the experts in the business of care.

To help you launch and grow 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. And that’s exactly what you’ll get when you invest with Radfield.

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

The Radfield Home Care franchise opportunity requires a total minimum investment in the region of £121,000.

This is before any variable costs and the ongoing Franchise Management Fee, which 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.

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.

You will therefore require a minimum personal investment of approximately £45,000 – £50,000 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 as you get up and running.

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 business 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.