In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Nurse Next Door franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Nurse Next Door franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Nurse Next Door franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Nurse Next Door’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- average, high, and low gross revenue for Months 7-12 and Month 12 for the 16 franchised Nurse Next Door businesses that were in operation 12 months or longer on September 30, 2016
- average, high, and low gross revenue for Months 13-24 and Month 24 for the 9 franchised Nurse Next Door businesses that were in operation 24 months or longer on September 30, 2016
Section I – Background Information
13 Things You Need to Know About the Nurse Next Door Franchise
Partnership with St. Joseph Health
1. In early 2016, St. Joseph Health made a home-care industry first by striking a deal to open 26 Nurse Next Door franchises throughout Southern California. The deal also includes an option for St. Joseph Health to buy another 12 franchises. Later in the year, St. Joseph announced that it had agreed to open an additional 13 locations.
2. The agreement is more of a partnership as each of the Nurse Next Door franchises will retain the St. Joseph Health brand and will continue to offer services such as basic companionship and Alzheimer’s and dementia support. St. Joseph Health will be hiring general managers for each location, which is different from the typical Nurse Next Door franchise model.
3. St. Joseph Health has been interested in expanding its home health service line for some time. The company’s current private duty health care business will be transitioned to the Nurse Next Door franchises.
4. Most of the franchises will be built from the ground up, although a few are being acquired from existing owners. Initially, the franchises will be providing non-skilled care, but they are pursuing state licensure to also provide skilled services.
5. Nurse Next Door says that the partnership will help the company continue to grow in the U.S. The company has plans to replicate this type of deal throughout the country. Expansion across the U.S. is one of its top priorities.
6. St. Joseph Health will operate franchise locations in Orange County, San Bernardino County, and part of Los Angeles County.
7. Nurse Next Door won the Franchise Times 2017 Dealmaker Award for its partnership with St. Joseph Health.
Winner of the 2016 Ernst & Young Entrepreneur of the Year Award
8. Last year, Cathy Thorpe, President and CEO, along with co-founders Ken Sim and John Dehart won the Ernst & Young Entrepreneur of the Year Award for the Pacific region in the Healthcare Services category. The award is given to Canada’s most impressive entrepreneurs.
9. Thorpe is a big reason why the trio won the award. Since joining the company in 2014, Thorpe has doubled the number of franchises, as well as the company’s revenue.
10. Ten years ago, Sim and Dehart won the EY Emerging Entrepreneur of the Year Award for the Pacific Region.
Named One of Canada’s Most Successful Growth Companies
11. In late 2016, Nurse Next Door was ranked No. 282 on Canadian Business and PROFIT’s annual PROFIT 500 list. The company ranked No. 13 in the Consumer Services category and ranked No. 28 in the Vancouver region.
12. Nurse Next Door was founded in 2001 by Ken Sim and John Dehart in Vancouver, British Columbia. Today, there are around 150 locations throughout Canada and the United States.
Entrepreneur’s Franchise 500
13. The company has only been franchising for the last ten years, but has managed to rank on Entrepreneur’s Franchise 500 a couple of times. The company’s highest rank was No. 70 in 2017 while its lowest rank was No. 348 in 2014.
Section II – Estimated Costs
- Please click here for detailed estimates of Nurse Next Door franchise costs, based on Item 7 of the company’s 2017 FDD (updated).
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Nurse Next Door’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.