In this FDD Talk 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 2018 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 2018 FDD

• Section IV – Number of franchised and company-owned Nurse Next Door outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Nurse Next Door’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• average, high, and low gross revenue for Months 7-12 and Month 12 for the 23 franchised Nurse Next Door territories that were in operation 12 months or longer on September 30, 2017

• average, high, and low gross revenue for Months 13-24 and Month 24 for the 12 franchised Nurse Next Door territories that were in operation 24 months or longer on September 30, 2017

• average, high, and low gross revenue for Months 25-36 and Month 36 for the 6 franchised Nurse Next Door territories that were in operation 36 months or longer on September 30, 2017

• average, high, and low gross revenue for Months 37-48 and Month 48 for the 3 franchised Nurse Next Door territories that were in operation 48 months or longer on September 30, 2017

• average revenue per client per month for franchised Nurse Next Door businesses with clients in the system for the month of September 2017, regardless of the length of time in operation

Section I – Background Information

13 Things You Need to Know About the Nurse Next Door Franchise

Introduces New Support Program to Help Peritoneal Dialysis Patients Maintain Care at Home

1.  At the beginning of October 2017, Nurse Next Door partnered with the BC Renal Agency to introduce a new assisted care program that will ensure peritoneal dialysis patients living with physical or cognitive challenges can remain independent. Peritoneal dialysis (PD) is a life-saving, home-based treatment for patients whose kidneys no longer function normally.

2.  According to the BC Renal Agency, there are currently 832 patients in British Columbia, Canada who use PD to independently manage their dialysis at home. Before the introduction of the PD Assist Program, if these patients had any difficulty managing their treatments, the only alternative was hemodialysis, which requires traveling to a dialysis unit three times a week.

3.  The PD Assist Program initially started as a pilot program, but the program is now available through all health authorities in British Columbia. Nurse Next Door will be providing the caregivers who will do daily home visits to help patients with specific tasks related to their PD treatment. All costs associated with the PD Assist program are covered by the BC Renal Agency and patients will not incur any out-of-pocket expenses.

4.  Cathy Thorpe, president and CEO of Nurse Next Door, said, “Nurse Next Door is thrilled to work with the BC Renal Agency, elevating the way care is delivered to British Columbians living with advanced kidney disease. Our mission has always been to help keep people at home and to make lives better, and we are proud to be doing just that through this innovative program.”

Home Health Care News Highlights Nurse Next Door’s Edgy Advertising

5.  In early February 2018, Home Health Care News posted an article on its website highlighting how Nurse Next Door is updating its advertising strategies. Home Health Care News said that Nurse Next Door took a calculated risk to stand out in the crowded and competitive home care marketplace by showing “edgy” content in one of its latest commercials.

6.  In late 2017, Nurse Next Door ran a commercial that told the story of “Miss Daisy,” a client who attended the strip show Thunder from Down Under with her Nurse Next Door caregiver. Cathy Thorpe, president and CEO of Nurse Next Door, said, “Nurse Next Door has always taken the approach of being disruptive. We do a lot of storytelling…and we’re not afraid to be bold. We want to be provocative.”

7.  Home Health Care News also talked about Nurse Next Door’s radio spot, which features Thorpe
bluntly addressing seniors, “No one wants to live in a retirement facility, no one. Especially not you, am I right? When your kids start talking about how wonderful it is to live in a retirement home, have them go to NurseNextDoor.com.”

8.  The decision to forge this brand identity was rooted in the company’s take on who the consumer is and where they are usually at, emotionally and psychologically, when it comes time to consider home care. Thorpe added, “The conversation is not an easy one. You have to have a provocative point of view to get it started. We’re speaking the truth, we’re not trying to be comfortable.”

9.  Nurse Next Door said that franchisees do sometimes experience negative responses from customers who are rubbed the wrong way by the advertisements. The brand’s headquarters in Vancouver prepares franchisees to handle these situations without becoming defensive.

10.  According to Thorpe, overall, the radio spots and online advertising are paying off for franchisees. “Online, in the U.S., is quite strong,” Thorpe said. “Radio is expensive but highly effective when you reach the right audience.”

Company History

11.  Nurse Next Door Home Care Services was founded in 2001 by Ken Sim and John DeHart in Vancouver, British Columbia, Canada. Sim was inspired to start his own home care company after a negative experience with the caregiving company he used for his pregnant wife Teena. After Teena was placed on emergency bed rest, the Sims hired a caregiver and discovered that she had just started work after faxing in her resume the previous day. They were shocked that the caregiver had never met her employer.

12.  After doing extensive research into the home care industry, Sim and DeHart decided that they could create a better experience. Nurse Next Door Home Care Services started franchising in 2007.

Entrepreneur’s Franchise 500

13.  Nurse Next Door has ranked on Entrepreneur’s annual Franchise 500 list a few times in the past 10 years. The brand’s highest rank was No. 50 in 2018, 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 2018 FDD.

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 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  21
• Outlets at the End of the Year:  25
• Net Change:  +4

2016

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  44
• Net Change:  +19

2017

• Outlets at the Start of the Year:  44
• Outlets at the End of the Year:  52
• Net Change:  +8

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• Experience within the Nurse Next Door franchise system shows that the first 6 months of business is a building phase for franchise partners. Following this initial 6-month period, gross revenue becomes more consistent and meaningful.

• Nurse Next Door makes the following historic financial performance representations about subsets of its existing franchised territories.

Part 1 – Gross Revenue for Months 7-12

• Chart 1 below illustrates gross revenue for the 6-month period from months 7 to 12 for Territories that were in operation 12 months or longer on September 30, 2017 and the gross revenue in the 12th month for this same group.