What should I check before buying a senior care franchise resale?
Check whether the territory matches where clients actually live, whether the client book and caregiver roster pass to you, which referral relationships belong to the owner and which to the brand, and how much of the schedule depends on the person leaving. Then take the franchise agreement to your lawyer.
A franchise resale in senior care is two purchases at once: the agency, with its clients and caregivers, and the right to operate under a brand. Each has its own checks. Many buyers spend all their effort on the brand paperwork and too little on the people the business depends on. Work through both, and ask the franchisor early what it requires of a new owner.
Does the territory match the clients?
The map in the franchise agreement and the map of where clients live are not always the same. Ask for a list of client locations by area, without names, and compare it to the territory. If many clients sit near a boundary, find out what happens when they move, and whether a neighbouring unit can serve them. Ask your lawyer how the territory is protected.
Clients, caregivers and referrals
Ask what actually transfers. Ask your lawyer whether client service arrangements and the caregiver roster need consent before they pass to you. Then separate the referral sources. Some belong to the brand, such as national partnerships and a central phone line. Others belong to the owner personally, like the relationships with local discharge planners. Learn which will still be there after the owner leaves.
How much runs on the owner?
If the outgoing owner builds the schedule, handles complaints and covers shifts, you are buying a job as much as a business. Ask who does each of those tasks, what the office team can do without the owner, and whether the owner will stay on during a handover. Speak with the franchisor about training you will receive, and read the lease and franchise transfer terms with your lawyer.
Related reading
12 pages on the same subject, grouped by topic.
Due diligence
Buying
- Expert answerShould I buy a franchise or an independent business?
- Expert answerWhat do buyers of a home care agency often underestimate?
- Expert answerWill caregivers stay after I buy a home care agency?
- GuideBuying a home care agency in Canada
- Expert answerIs buying a non-medical home care agency different from buying a home health agency?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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