This special FDD Talk series will highlight the financial performance representations of 13 Senior Care franchises, with a cross-analysis of the featured franchises to be published at the end of the series.
Highlights of Right at Home’s Item 19 Financial Performance Representations (2012 FDD) – Part 1
- The franchisee will operate a Right at Home business that provides (i) in-home assistance and companionship services for seniors and others, and (ii) supplemental staffing services for nursing homes, hospitals, and other medical institutional settings.
- The total investment necessary to begin operation of a Right at Home franchise ranges from $64,900 to $111,600. This includes $42,500 for the first Franchised Business plus $28,500 for each additional Franchised Business that you intend to develop under the terms of the Multiple Unit Development Agreement.
Net Billings Information for Franchisee Offices Open At Least One Year
- For the purpose of this Item 19, “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 therefore), or otherwise. Net Billings does not include the amount of all sales tax receipts or similar tax receipts which, by law, are chargeable to clients, if such taxes are separately stated when the client is charged and if such taxes are paid to the appropriate taxing authority.
- In addition, Net Billings does not include the amount of any documented refunds, chargebacks, credits, and allowances given in good faith to clients by the franchisee, and the amount of mileage and out-of-pocket expenses incurred by and reimbursed to employees in connection with providing services to clients.
- The Net Billings are based upon information reported to the franchisor by Right at Home franchisees whose offices had been open for at least 12 months for the period ending December 31, 2011, which is 191 Franchised Businesses.
- Right at Home has not audited this information, nor has it independently verified this information.
- The information is for the period commencing January 1, 2011 through December 31, 2011.
- The opening date of an Office is the date the franchisee is able to take on his or her first client.
- The franchised businesses classified below, together with the breakdown of information, represent only those franchisees who reported data to the franchisor.
- Two franchisees with multiple Offices and Franchise Agreements each reported data as one Office. Therefore, data from these two franchisees was excluded. Fifteen franchisees included below have more than one Franchise Agreement but do not have separate Offices for each Franchise Agreement and do not report Net Billings separately for each Franchise Agreement.
- Eleven franchises transferred ownership during 2011. Net Billings for those franchises were reported based on the date the original franchise opened.