In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Right at Home franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Right at Home 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 Right at Home franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Right at Home 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 Right at Home’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average, median, high, and low net billings and average percent increase over 2016 for Right at Home franchised offices in business for 73 months plus, 61 to 72 months, 49 to 60 months, 37 to 48 months, 25 to 36 months, 13 to 24 months, and all offices open 1 year or more ending 2017, respectively

• 2017 average, median, high, and low net billings for all Right at Home franchisee entities, which may own one or more Right at Home franchised businesses

• number and percent of Right at Home franchised businesses operating for the full 12 months in 2017 that reported net billings, with 2017 net billings of over $1,000,000, $750,001 to $1,000,000, $500,001 to $750,000, $250,001 to $500,000, and $0 to $250,000, respectively

• 2010, 2011, 2012, 2013, 2014, 2015, 2016, and 2017 average gross margin percentage, office payroll percentage, and marketing percentage for all Right at Home franchised businesses that had been open for at least the entire year indicated

Section I – Background Information

18 Things You Need to Know About the Right at Home Franchise

Partners with Kindred at Home to Improve Overall Quality of Healthcare Options for Aging Adults

1.  In early August 2018, Right at Home announced a preferred partnership with Kindred at Home, the largest home health and hospice provider in the country. This partnership is the latest strategic program implemented by Right at Home with a focus on highlighting the value of home care in the post-acute continuum and is part of its proprietary care delivery system, called RightCare.

2.  Right at Home and Kindred at Home will work together under a formalized preferred partnership with a focus on collaborative care. Each industry leader shares the common goal of keeping seniors healthy, happy, and in the location they call home.

3.  With similar footprints across the nation and areas of cross-market coverage, when clients are in need of home health services and are equally eligible, Right at Home has identified Kindred at Home as a national collaboration partner in care. In return, Kindred at Home has identified Right at Home as a partner of choice, focused on decreasing hospital readmissions and improving the overall quality of healthcare outcomes.

4.  According to Brian Petranick, president and CEO of Right at Home, “These are the types of partnerships that will continue to drive the quality Right at Home is known for as we strive to provide RightCare to everyone who touches our brand. RightCare is ‘The Right People doing the Right Things the Right Way for the Right Reason.’ We are hopeful our partnership with Kindred at Home puts us in a position to better leverage the new 2019 Medicare Advantage opportunity. Home health has always been great at capturing and evaluating data, and we now have an avenue to not only collaborate on service delivery, but also to analyze market data and measure outcomes.”

5.  Under this new partnership, Right at Home and Kindred at Home will work on a local and national level to find areas of collaboration and opportunities to serve the elderly population. While there are many strategic objectives for this partnership, its main goal is to keep seniors out of the hospital and reduce the overall cost of healthcare.

6.  David Causby, president and CEO of Kindred at Home, said, “Kindred at Home is excited to partner with Right at Home to provide compassionate, patient-focused home care assistance to all who need it. Our hope is that we can utilize the new Medicare Advantage opportunity to help our patients stay where they want to be – their homes.”

Partners with Lyft to Provide Affordable, Safe, and Convenient Transportation

7.  At the end of February 2018, Right at Home announced that it had partnered with Lyft, the fastest-growing rideshare company in the U.S., to create Right at Home Transport, powered by Lyft. The new service offers seniors quick, safe, and easy-to-schedule rides wherever they want to go.

8.  Access to transportation plays a critical role in the lives of older adults and those who care for them. Of seniors 65 and older who no longer drive, the risk of poor health outcomes, availability of healthy food, and social isolation is significant. Right at Home and Lyft will help seniors stay in touch with friends and family, get to medical appointments and the grocery store, and cultivate their interests.

9.  Kerin Zuger, director of business development for Right at Home, said, “Lyft’s mission is to improve people’s lives with the world’s best transportation and to focus on people first. Right at Home’s mission is to improve the quality of life for those we serve. We understand that giving up driving can be hard on our clients, but our new ride service will provide our clients and their families with so many benefits, granting them freedom, safety, and a convenient and affordable way to get around.”

10.  Right at Home Transport, powered by Lyft, now gives seniors and their families an alternative that is 30 to 40 percent more affordable than using a taxi service. The ride service is:

• Empowering: It helps seniors maintain their independence and live healthier, happier lifestyles.
• Convenient: Seniors do not have to worry about car maintenance, pumping gas, driving directions, or parking; they get fast and easy access to rides, and family members get peace of mind knowing their loved one is safe.
• Practical: Clients may travel alone or with their caregivers or family members to help them.
• Reliable: Rides can be requested any time, day or night, and up to a week in advance.
• Safe: Lyft drivers must pass rigorous background checks and vehicle inspections and have a good driving record, and Right at Home can monitor the location of the Lyft driver.
• Easy: No app or smartphone is required; just simply call the Right at Home office.

North American Franchisees and Employees Participate in Vision Trips to Provide Wheelchairs to Those in Need

11.  At the beginning of 2019, Right at Home announced that it was continuing its partnership with Free Wheelchair Mission (FWM), which exists to provide the transforming gift of mobility to people with disabilities living in developing nations around the world. The World Health Organization estimates that 70 million people need a wheelchair but cannot afford one. FWM believes in a world where everyone who needs a wheelchair has one.

12.  As of the beginning of 2019, FWM has provided more than 1 million wheelchairs to people most in need, and the organization’s goal is to provide the next million wheelchairs by 2025. Right at Home is committed to supporting FWM in this lofty goal. Right at Home’s 2019 goal is to raise $88,000 (enough for two containers of wheelchairs) for FWM to continue their efforts to provide the gift of mobility to those most in need around the world.

13.  Since beginning its partnership with FWM in 2016, the Right at Home system has raised nearly $200,000 and improved the quality of life of more 2,250 families. The partnership with FWM has allowed Right at Home to extend the reach of its mission beyond the eight countries in which it operates by hand-delivering the gift of mobility during FWM Vision Trips.

14.  Last October 2018, a team of 12 Right at Home representatives from across the U.S. and Canada traveled to Costa Rica where they assembled and delivered 62 wheelchairs to a variety of inspiring individuals with incredible stories. In November 2018, another team of 14 Right at Home franchisees, employees, and corporate team members traveled to Vietnam, where they provided 42 wheelchairs to members of the community.

Company History

15.  Right at Home was founded in 1995 by Allen Hager in Omaha, Nebraska. Hager had worked for nearly a decade in the healthcare industry as a hospital administrator and noticed that many patients, especially senior patients, left the hospital but did not necessarily return to health. Once home, a lot of Hager’s former patients were unable to care for themselves. He felt that with a little help, most of these people could lead healthy, happy lives in their own homes. However, Hager recognized that there were very few companies that offered this kind of help.

16.  Before jumping headfirst into starting a senior home care business, Hager talked to dozens of families to understand the different kinds of challenges they faced and what kind of care would help. Then he became a certified nursing assistant so he could experience the needs of people who were still living in their home but who needed some professional assistance. After all of his research, Hager established Right at Home.

17.  Five years after opening the first Right at Home in Omaha, Hager began branching out to other regions by carefully selecting franchisees who shared his passion for caring for those in their community. Today, there are Right at Home locations across the country as well as internationally in countries such as Canada, Australia, China, Ireland, Japan, the Netherlands, and the United Kingdom.

Entrepreneur’s Franchise 500

18.  Right at Home ranked No. 211 on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Right at Home 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 Right at Home’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:  378
• Outlets at the End of the Year:  432
• Net Change:  +54

2016

• Outlets at the Start of the Year:  432
• Outlets at the End of the Year:  465
• Net Change:  +33

2017

• Outlets at the Start of the Year:  465
• Outlets at the End of the Year:  475
• Net Change:  +10

Company-Owned

2015

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

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

• 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 your employees in connection with providing services to clients.

• Importantly, the success of your franchise will depend largely upon your personal abilities, your use of those abilities, and your market. The financial results of your franchise will likely differ, perhaps materially, from the results summarized in this Item.

Part 1 – Net Billings Information for Franchised Offices Open at Least One Year

• Tables 1, 1A, and 2 presented below contain certain information related to Net Billings realized by Right at Home franchisees for the period beginning January 1, 2017 and ending December 31, 2017.

• The opening date of a Franchised Business is the date the franchisee is able to take on his or her first client.

• The information and figures regarding Net Billings presented in Table 1 below is based upon information reported to the franchisor by Right at Home franchisees for 447 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, 2017 through December 31, 2017. The information has been extracted from actual franchise reports made to Right at Home.

• The Franchised Businesses classified below, together with the breakdown of information, represent only those franchisees that reported data to the franchisor as specifically noted following the Net Billings Information table.

• The information may be used to evaluate the experience of existing Right at Home Franchised Businesses. The information is not a projection or forecast of what a new franchisee may experience.

• Some franchisees have earned these amounts. Your individual results may differ. There is no assurance that you will sell as much.

73 Months Plus