Home Care Franchise Costs in the UK (2026): What You'll Really Pay, and a Lower-Cost Alternative

A home care franchise is one of the most popular ways to enter the UK care sector. You get a recognised brand, training and a proven operating system. But franchises are also a significant financial commitment, and the headline franchise fee is only part of what you will pay.

In this guide we break down typical home care franchise costs in the UK in 2026, from the upfront fee and monthly royalties to the costs that are easy to overlook. We also explain a lower-cost alternative for people who want to run a care business under an established brand without the price tag of a full franchise.

1. Home Care Franchise Costs at a Glance

Exact terms vary by brand, but published figures from established UK home care franchises (such as Home Instead, Caremark, Bluebird Care and Right at Home) typically fall within these ranges:

• Initial franchise fee: around £17,500 to £41,000, plus VAT.
• Ongoing management fee or royalty: usually around 4.5% to 8.5% of your turnover, every month.
• Marketing or brand fund contribution: many franchisors charge this on top of the royalty, often as a further percentage of turnover.
• Total investment to launch: often £100,000 or more once working capital, office set-up, recruitment and the period before you break even are included.

2. What the Upfront Franchise Fee Usually Covers

• The right to use the brand in a defined territory for a fixed term.
• Initial training for you and, sometimes, your registered manager.
• Operations manuals, policies and the franchisor's systems.
• Launch support, such as help with recruitment and initial marketing.

The fee does not usually cover your premises, staff wages, insurance, regulator fees or the working capital you need while the business grows.

3. The Ongoing and Hidden Costs to Plan For

• Royalties that grow with you: because the management fee is a percentage of turnover, the more successful you become, the more you pay.
• Regulator registration: most care franchises operate as regulated domiciliary care agencies, so you will need to register with the CQC in England (or the equivalent regulator elsewhere in the UK), appoint a registered manager and pay ongoing fees. Registration can take many months, during which you cannot provide regulated care.
• Payroll and working capital: you employ carers and pay them before clients pay you.
• Premises: an office is often required or expected.
• Technology and software fees: rostering, care-planning and CRM systems, sometimes charged monthly by the franchisor.
• Insurance: employer's liability (a legal requirement when you employ staff), public liability and professional indemnity.
• Recruitment and training: a continuous cost in a sector with high staff turnover.
• Renewal and exit terms: some agreements charge a renewal fee at the end of the term or restrict how you can sell the business.

How a percentage royalty adds up (illustration only)

If a franchise charged a 6% management fee and your business turned over £300,000 in a year, you would pay £18,000 in royalties that year, before any marketing levy. At £600,000 turnover, it would be £36,000. This is simple arithmetic to show how percentage fees scale, not a forecast of what any business will earn.

4. How People Fund a Home Care Franchise

• Personal savings or investment, which most lenders expect to see as a contribution.
• Bank lending: several major UK banks have specialist franchise teams that may lend towards an established franchise.
• Start Up Loans: the government-backed scheme offers personal loans of up to £25,000 to help start a business.

5. Questions to Ask Before You Sign

1. What is the full fee schedule, including royalties, marketing levies, software and renewal fees?
2. How large is the territory, and is it exclusive?
3. How long until a typical franchisee breaks even? (Ask to speak to several existing franchisees directly.)
4. What happens at the end of the term, or if you want to sell or exit early?
5. Is the franchisor a member of the British Franchise Association?
6. Have you had the agreement reviewed by an independent franchise solicitor and accountant?

Want a care business under an established brand, without franchise fees?
With the No1 Healthcare City Licence you pay £2,500 for a 5-year licence, no management fee for the first 12 months, then a fixed £350 per month. No percentage of your turnover, no office and no regulator registration needed for the introductory model.

👉 Check if your city is available  |  📞 0333 344 0645

6. A Lower-Cost Alternative: The No1 Healthcare City Licence

No1 Healthcare is an Edinburgh-based introductory care agency with 10 years of experience connecting families with vetted, self-employed carers for live-in and visiting care. Our City Licence lets you run that same model in your own UK city.

What it costs

• Licence fee: £2,500 one-off, covering a full 5-year agreement.
• Months 1 to 12: no management fee.
• Months 13 to 60: a fixed £350 per month (48 × £350 = £16,800).
• Total over 5 years: £19,300, with no percentage of your turnover.

How it compares with a typical care franchise

• Upfront cost: £2,500 instead of £17,500 to £41,000 plus VAT.
• Ongoing fees: a fixed £350 per month from year two, instead of 4.5% to 8.5% of turnover.
• Regulator registration: not needed for the introductory model, because you introduce self-employed carers rather than managing care.
• Premises: work from home.
• Carers: we recruit, vet and onboard the self-employed carers centrally.
• Your role: finding and supporting families who need care in your city, and building local relationships.

Is it right for you?

A licence is a different model from a franchise. You will not run a regulated agency or employ a care team, and your success depends on building trust with local families and referrers. If you want a lower-cost, home-based route into the care sector under an established brand, it is worth a conversation.

Ready to find out more?
Visit the No1 City Licence page to apply, or call 0333 344 0645. You can also read our guide on how to start a home care business in the UK.

Franchise figures are typical published fees from UK home care franchises and vary by brand and over time. Always check the latest terms directly with each franchisor.

Frequently Asked Questions About Home Care Franchise Costs

How much does a home care franchise cost in the UK?

Published UK home care franchise fees are typically around £17,500 to £41,000 plus VAT upfront. Most franchisors also charge an ongoing management fee of roughly 4.5% to 8.5% of turnover, and the total investment including working capital can exceed £100,000.

What is a franchise royalty or management service fee?

It is an ongoing fee, usually calculated as a percentage of your monthly turnover, paid to the franchisor in return for continued use of the brand, systems and support. Because it is a percentage, it grows as your business grows.

Is a home care franchise worth the money?

A franchise can be worthwhile if you want a proven system for running a regulated care agency and have the capital and time to invest. It is important to speak to existing franchisees, review the full fee schedule and take independent legal and financial advice before signing.

What is the difference between a franchise and a brand licence?

A franchise usually involves a large upfront fee, a percentage of turnover and a tightly controlled operating system. A brand licence gives you the right to trade under an established brand in your area, typically for a fixed fee and with fewer obligations. The No1 City Licence costs £2,500 for 5 years, with no management fee for 12 months and then a fixed £350 per month.

Do I need care experience to run a home care franchise or licence?

Care experience is helpful but not always essential. Many franchisees and licence holders come from business, sales or management backgrounds. What matters most is being able to build trust with families and local referrers.