Purchasing a nurse staffing franchise potentially has many key benefits when starting a new healthcare agency. Let’s take a look at some of those key benefits to understand the value proposition of entering a franchise.
This type of business opportunity has many pros and cons, but we will mainly look at the benefits and how they can affect your business decision.
Benefits #1: Plug and Play
By purchasing a franchise, you won’t have to worry about many aspects of the business start-up process. The franchise has already done this for you, they will usually provide you with the forms you will need, the logo you will use, you will need to use the name of the franchise, and they will also provide you with the software. You will have to abide by their rules and processes. Nothing you will have to do will be unique to your franchise. The franchise has rules that you will need to follow, and as long as you follow those rules, you can continue to run the franchise.
Benefit #2: As long as you’re willing to spend, that’s fine.
Buying a franchise can be expensive: fees typically range from $25,000 to $100,000 for the franchise fee. The franchise fee is the fee they will charge you to allow you to use their name. The franchise will expect you to represent them in such a way that they determine what it will look like. You are expected to rent a location, buy furniture, buy their software, etc.
Benefit #3: Ongoing Support
You will be charged an ongoing franchise fee and that fee will depend on your gross sales. Sometimes the fee starts at a certain monthly amount and grows as your gross sales grow. The franchise fee is in place for the franchise company to continue to support you and the license fee to continue to use your name. Fees may vary, but you can typically expect 5-10% of gross sales.
Benefit #4: Sell the franchise
This is a great benefit, because when at one point you feel like this business is no longer what you want and you want to sell it, they usually help you sell the franchise. Typically, you’ll have to pay what’s called a “sales multiplier,” which basically means you’ll only get a certain percentage of the sale minus any expenses you owe the franchise. This is something you need to be aware of because the franchise is never really yours, it belongs to the franchising company and you have to follow the rules.
There you have it, some of the key benefits of buying a nursing franchise. You will need between $100,000 and $250,000 to open a nursing franchise and be willing to pay the franchise a monthly fee for the life of the business and for as long as you own it.