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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Nurse Next Door’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- average, median, high, and low Gross Sales for Months 1-12 and Month 12 for the 37 franchised Nurse Next Door territories that were in operation 12 months or longer on September 30, 2018
- average, median, high, and low Gross Sales for Months 13-24 and Month 24 for the 27 franchised Nurse Next Door territories that were in operation 24 months or longer on September 30, 2018
- average, median, high, and low Gross Sales for Months 25-36 and Month 36 for the 14 franchised Nurse Next Door territories that were in operation 36 months or longer on September 30, 2018
- average, median, high, and low Gross Sales for Months 37-48 and Month 48 for the 6 franchised Nurse Next Door territories that were in operation 48 months or longer on September 30, 2018
- average revenue per client per month for franchised Nurse Next Door businesses with clients in the system for the month of September 2018, regardless of the length of time in operation
Section I – Background Information
17 Things You Need to Know About the Nurse Next Door Home Care Services Franchise
Signs Master Franchise Agreement for Australia
1. In early December 2018, Nurse Next Door Home Care Services announced its first international deal when the company awarded Amber Biesse and Matt Fitton with a master franchise agreement for Australia. With 150+ franchises already operating (at the time of the announcement) throughout Canada and the United States, overseas expansion was the next step in the company’s growth and impact.
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3. Australia’s health system, like those around the world, is struggling to keep up with the demands of an aging population. Biesse and Fitton will launch the initial Nurse Next Door location in Melbourne, Australia before expanding through a franchise model in early 2019. From there, the goal is to gradually add locations, growing to 75 to 100 Australian franchises within the next five to 10 years.
4. Fitton said, “Having been entrepreneurs for the better part of our careers, Amber and I are excited to bring Nurse Next Door’s award-winning senior care to our home market. From its bold and vibrant brand to its focus on Happier Aging, we fell in love with what Nurse Next Door was doing in North America. We know this is a concept that can thrive in Australia and one we are proud to be part of.”
5. Nurse Next Door’s international plans, which have been in the works for about five years, don’t stop in Australia. According to Thorpe, “We do want to be aggressive going forward and we plan to expand into three to five new markets in the next 12 to 18 months.” Targets currently include the United Kingdom, where there’s no language barrier; Germany, which offers an entryway to mainland Europe; and China, where the aging population is growing without the infrastructure to support it, Thorpe said.
Expands Full-Time Work Initiative
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.6. While international expansion is a big priority for 2019, Nurse Next Door hasn’t lost sight of its domestic goals, such as improving caregiver retention and adopting innovative technology.
7. Cathy Thorpe, president and CEO of Nurse Next Door, said, “I want as an organization to disrupt how the industry sees the caregiver role as a casual job.” In doing that, the company hopes to satisfy workers, thus lowering turnover, which industry-wide hovers just above 65%, and combating the industry caregiver shortage, which has long been identified as a top concern among home care agencies.
8. Thorpe added, “We’re actually hiring caregivers full-time. We’re guaranteeing hours for them, so for the first time they actually know how much their paycheck is going to be [and] how they can plan for their future.”
9. Nurse Next Door says that for locations offering the benefit, full-time caregivers are guaranteed 30 or more hours per week. Nurse Next Door started testing full-time caregivers at its corporate-owned location in mid-2016, and the initiative continues to roll out on a larger scale, with franchises following suit on a discretionary basis.
10. By 2020, the goal is for all locations to offer some form of guaranteed hours, higher wages, and benefits. Thorpe said, “It’s not just about going in and adding hours to their week. What are other career aspirations people have, and how are we able to help people get to those places?”
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.Focusing on Tech Advancements and Domestic Expansion
11. In addition to its international expansion goals and full-time work initiative, Nurse Next Door Home Care Services is also focusing on using technology to improve business operations in 2019.
12. Cathy Thorpe, president and CEO of Nurse Next Door, said, “By and large, I think the home care industry has been behind in technology, so I think it’s refreshing to see some of these companies like Honor. You can ask, ‘Are they disrupting home care?’ I think they’re actually helping us move forward, and it’s forced us to really look and say, ‘What does our platform look like? How do we continue to invest in our platform?’”
13. According to Thorpe, over the past two years, Nurse Next Door has incorporated technology into its strategy on a larger scale and will continue to do so in 2019. Finding technologies that make scheduling easier, removing client-caregiver friction, and making the online user experience easier are all at the top of Thorpe’s list.
14. Nurse Next Door’s other big goal for 2019 is continued growth across Canada and the United States. Priorities for Canada include growth for comparable store sales, while Nurse Next Door plans to open 50 to 60 new locations in the U.S.
Company History
15. Nurse Next Door Home Care Services was founded in 2001 by Ken Sim and John DeHart in Vancouver, British Columbia, Canada. Sim and DeHart were inspired to start their own home healthcare company after struggling to find quality care for Sim’s pregnant wife Teena, who was placed on emergency bed rest with their first child.
16. After doing research, Sim and DeHart realized that there was a need for better home care services, especially for seniors. Nurse Next Door Home Care Services began franchising in 2007 and today there are locations across Canada and the United States.
Entrepreneur’s Franchise 500
17. Nurse Next Door Home Care Services ranked No. 190 on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Nurse Next Door franchise costs, based on Item 7 of the company’s 2019 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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2016
- Outlets at the Start of the Year: 24
- Outlets at the End of the Year: 51
- Net Change: +27
2017
- Outlets at the Start of the Year: 51
- Outlets at the End of the Year: 75
- Net Change: +24
2018
- Outlets at the Start of the Year: 75
- Outlets at the End of the Year: 89
- Net Change: +14
Company-Owned
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
2018
- 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, 2019 FDD) and Analysis
- Nurse Next Door makes the following historic financial performance representations about subsets of its existing franchised territories.
Part 1 – Gross Sales by Territory for Months 1-12
- Chart 1 below illustrates Gross Sales for the 12-month period from months 1 to 12 for Territories that were in operation 12 months or longer on September 30, 2018 and the Gross Sales in the 12th month for this same group.
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