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FDD Talk: Average Net Billings (Revenues) for Right at Home Franchisee Offices in 2010

Last updated on May 8, 2012 by Franchise Chatter 2 Comments
in Franchise Earnings, Senior In-Home Care Franchises

Right at Home franchised businesses specialize in an array of services including providing personal care, non-medical care, other in-home care, assistance and companionship services to and supportive care of seniors and others, and supplemental staffing services for nursing homes, hospitals, and other home health agencies and other medical settings.

2010 Net Billings for Right at Home Franchisee Offices Open at Least One Year, By Time in Business

For purposes of this section, Net Billings means the total of all revenues from the operation of the franchised business whether received in cash, services in kind, from barter and/or exchange, on credit (whether or not payment is received) or otherwise.  Net Billings does not include sales tax receipts, the amount of any documented refunds, chargebacks, credits, and allowances given in good faith to clients by the franchisee.

The Net Billings are based upon unaudited information submitted by Right at Home franchisees whose offices had been open for at least 12 months for the period ending December 31, 2010.



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Tagged as: Right at Home

Reader Interactions

Comments

  1. Robert Batelli says

    March 2, 2012 at 8:43 am

    I believe the Gross MArgin is the revenue left after Cost of Good Sold (which are the expenses directly related to revenues such as salaries). So after Gross Margin the remaining expenses are deducted from GM to leave you with net margin of approximately 20%. This is still a good return nbut not the 40% as stated.

    Reply
    • Ambrosio says

      March 2, 2012 at 3:14 pm

      Hi Robert,

      Right at Home defines Gross Margin as Net Billings Less Cost of Goods Sold (direct costs related to direct care staff). So you would still have to deduct a lot of other expenses from Gross Margin to arrive at Net Margin. This includes office payroll, marketing, plus all other business expenses that were not mentioned. But in fairness to Right at Home, this was very clearly disclosed and explained.

      Thank you for your comment.

      Best regards,

      Ambrosio

      Reply

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