By Khadija Cochinwala, FRANdata

The aging population in the U.S. is creating significant opportunities for innovation, expansion, and enhanced services within the franchised senior care industry.

According to the Vintage 2024 Population Estimates by the U.S. Census Bureau, the share of the elderly population aged 65 and older steadily increased from 12.4 percent in 2004 to 18.0 percent in 2024. Moreover, 2025 marks “the peak of America’s Peak 65 Zone,” a demographic milestone marking the largest surge of individuals in U.S. history reaching retirement age. Approximately 11,400 Americans are turning 65 each day, translating to nearly 4.2 million Baby Boomers reaching the traditional retirement age within the year. This shift will bring the total population aged 65 and older to an estimated 73 million, making it the fastest-growing age group and accounting for roughly 20 percent of the U.S. population. Additionally, the 80+ population, which is currently estimated at 14.7 million, is expected to grow substantially by 55 percent and reach 23 million by 2035.

Driven by improving life expectancies, breakthroughs in chronic disease management, rising age longevity, and a steady increase in the national median age, the rising “age-wave” underscores the unprecedented demand and growth for the franchised senior care industry. This expansive and diverse market encompasses a wide range of business and franchise models, including assisted living communities, adult daycare centers, long-term care facilities, nursing homes, and the rapidly growing “aging in place” or in-home care segment, positioning it as one of the most dynamic sectors for future investment and development.

Source: FRANdata

FRANdata estimates that the AUVs for the franchised senior care brands have grown at a CAGR of 4.6 percent from approximately $1.1 million in 2020 to $1.3 million in 2024.

Key Trends in the Senior Care Segment in 2025

Aging in Place

Multiple surveys conducted by National Institute of Health, AARP, and other nationwide agencies point to more than 90 percent of the elderly population continuing to prefer aging in place and remaining in their own homes over moving to more expensive nursing homes or institutional care settings. Seniors favored aging in place since it also promoted a more independent lifestyle while providing connection and proximity to family and community. Home care services consistently demonstrate lower annual costs, averaging at $55,000/year, compared to institutional care options such as assisted living facilities ($64,000/year) and nursing homes ($95,000/year)[1]. This financial advantage is a central factor prompting families to choose in-home support, especially for seniors whose care needs do not require around-the-clock supervision or specialized medical services. Overall, the sustained demand and low operational costs continue to propel the growth of the at-home senior care franchises such as Home Instead, Visiting Angels, Comfort Keepers and Right at Home, each of which had more than 500 operational units across the country in 2024.

Source: FRANdata

Based on FRANdata’s research, the number of franchised locations across all senior care segments has increased at a CAGR of 5 percent to nearly 8,000 units in 2024. Brands like SYNERGY HomeCare and HomeWell Care services demonstrated significant system size growth with the addition of over 100 franchised units between 2020 and 2024. California, Texas, and Florida, with substantial elderly populations, are playing a major role in accelerating the demand for age-related services and solutions.

Emphasis on Wellness, Personalized and Memory Care

Senior living franchises are moving beyond physical health to integrating wellness, fitness programs, mental health services, and social activities in their gamut of comprehensive care services. An increasing number of senior care franchises, such as Griswold Home Care, are adopting personalized care models that match at-home caregivers with clients based on their specific needs, personal values, and daily routines, ensuring a more tailored approach towards senior care.

Wellness is the latest buzzword, as an increasing number of senior living communities, including assisted living and adult daycare franchises, are integrating daily opportunities for physical activity through expanded fitness facilities, offering nutritionally focused dining options with an emphasis on plant-based diets, and employing dedicated wellness coaches to support individualized health goals. The shift by senior care franchises towards a lifestyle-focused and wellness-driven model reflects a growing commitment within the sector to promote a holistic lifestyle, longevity, and a higher quality of life for active older adults in their retirement years.

Assisted living and hospice care franchises are also rapidly acknowledging and prioritizing memory care, with specialized residences and programs designed for seniors experiencing cognitive decline including dementia and Alzheimer’s disease. Additionally, the Hospital-at-Home (HaH) model is gaining popularity as an increasing number of hospitals are beginning to provide services such as IV therapy and lab work completely at home.

Technological Integration

Senior care franchisors are accelerating the integration of advanced technology by including AI and smart monitoring devices to optimize care delivery and management. These innovations enable real-time health tracking, fall detection, medication reminders, and emergency alerts. Telehealth platforms are streamlining remote medical access to improve satisfaction for residents and their families. Operationally, franchisees benefit from scheduling software, mobile apps, and automated caregiver matching, which helps in scaling services efficiently. The adoption of secure digital platforms also enhances transparency by allowing families to track care activities and maintain communication with caregivers and seniors.

Focus on Caregiver Support and Workforce Development

The senior care industry is grappling with persistent workforce shortages, which has worsened despite various recruitment incentives as 59 percent of home care agencies in 2025 reported insufficient staff, according to NCHStats. High turnover rates further exacerbate this issue, as national caregiver turnover reached 77 percent in 2024, according to the Home Care Pulse Benchmarking Report. The median hourly wage for home care aides at $15 falls below the national living wage threshold contributing to low job satisfaction and retention. Moreover, with immigrants mainly from Philippines, Jamaica, Haiti, and Nigeria comprising over 30 percent of home health and personal care aide roles in many states, especially in urban centers and along coastal regions, policy changes and uncertainties in immigration procedures threaten to further constrain the caregiver shortages.

M&A Activity in the Franchised Senior Care Segment

The recession-resistant demand for senior care services and the trend of seniors preferring to “age in place” is fueling PE interest in home-based care franchises. Private equity firms are increasingly adopting the strategy to acquire a ‘platform’ company and thereafter make a series of smaller acquisitions to grow the business. For instance, in 2024, Waud Capital acquired Senior Helpers, a large home care franchise with over 380 locations. In April 2025, Waud acquired Illinois-based MedTec Healthcare and consolidated its home care assets under a new holding company, Altocare.

In conclusion, the U.S. franchised senior care landscape in 2025 is defined by booming demand driven by an aging population, increased use of personalized technology like AI for independence and safety, a growing focus on holistic wellness, the continued expansion of home-based and community care, and significant challenges in recruitment and retention of the caregiver workforce.

 Khadija Cochinwala is a research analyst at FRANdata. She is part of a team of analysts who measure, track, and analyze franchisor performance. Khadija is committed to producing quality franchise insights that enable strategic decision making and propelling business growth. She graduated with a degree in Communications and enjoys gardening and visiting exotic destinations around the world whenever she isn’t researching data. For more information about IFA supplier member FRANdata, please visit franchise.org/suppliers/frandata/.

[1] U.S. Home Care Industry Stats, nchstats.com

 

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