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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Right at Home’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 average, median, high, and low net billings and average percent increase over 2017 for Right at Home franchised offices in business for 61 months plus, 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 2018, respectively
- 2018 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 2018 that reported net billings, with 2018 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, 2017, and 2018 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
17 Things You Need to Know About the Right at Home Franchise
Celebrates 25th Anniversary While Moving Into New Headquarters
1. In mid-February 2020, Right at Home said that it was settling into its new headquarters in a new structure at Aksarben Village in Omaha, Nebraska, just in time for the company’s 25th anniversary. The move marks a notable change for Right at Home, which outgrew its existing space a few years ago and has relied on an annexed location to accommodate its growing team. The new office brings the entire corporate team back together under one roof.
2. Brian Petranick, president and CEO of Right at Home, said, “It’s an exciting time for Right at Home. We continue to expand our foothold in the home care industry, allowing us to provide care to more seniors and adults with disabilities, which is sorely needed due to the waves of baby boomers turning age 65 every day. The new headquarters will allow us to enhance the support provided to all of our offices, utilizing the best of current technology. It will also provide a great environment for our current and future employees. We are truly thrilled with the new building and look forward to continuing on as a resident of Aksarben Village in Omaha for years to come.”
3. The new headquarters features innovative designs that enhance collaboration, promote employee health, and offer flexibility, making it appealing to the workers of today. There are a number of traditional meeting rooms, as well as open areas for collaboration. Right at Home employees will also enjoy “touchdown stations” that will allow them to work from virtually any point in the office, as well as ample “phone booths” for private calls. The focal point of the office is the two-story entry that captures the history, culture, and spirit of Right at Home.
4. The environment outside of the office also supports Right at Home’s commitment to its employees. Aksarben Village is one of the most vibrant and active areas of Omaha. Walking trails, a health club, multiple restaurants, outside seating, and Stinson Park are just some of the features of the area.
Announces Second Annual Caregivers Week and Plans to Recruit 30,000 Caregivers in 2020
5. In mid-November 2019, Right at Home recognized its caregivers during the brand’s second annual Professional Caregivers Week. The brand also said that it plans to recruit 30,000 more caregivers nationally in 2020. Professional Caregivers Week ran from November 11 to 17, 2019, and was celebrated at the national level and at individual Right at Home offices.
6. Right at Home franchisees nationwide honored their caregivers with T-shirts, promotional items, stationery, balloons, gift bags, thank-you cards, posters that state “We heart our caregivers,” and more. Many individual Right at Home franchisees also hosted appreciation events for their caregivers.
7. According to Mike Flair, vice president of franchise business solutions for Right at Home, “Caregiver appreciation is shown at every level at Right at Home. From the leadership team to individual franchisees, we all know we could not be where we are today without our wonderful caregivers and the genuine concern they have for our clients. Right at Home caregivers truly go above and beyond the call of duty. We are grateful for our caregivers every single day, and we’re thrilled to spend the week recognizing and rewarding them for everything they do.”
8. Right at Home also believes in individual caregiver recognition, which is why the brand was proud to honor Bonnie Croom of Reno, Nevada, as the National Caregiver of the Year. “Bonnie lives out our commitment to providing the Right Care for the Right Reasons in the Right Way,” Flair said. “She is the Right Person in her role, and we couldn’t be luckier to have her as a valued caregiver.”
9. According to Pew Research Center, roughly 3.8 million baby boomers are expected to turn age 65 each year between 2011 and 2029. What’s more, 70% of adults who reach age 65 will need long-term services and supports (LTSS) at some point during the rest of their lives, according to a study by the U.S. Department of Health and Human Services. Right at Home is ready to provide solutions.
10. Flair added, “The supply-and-demand gap for home care workers will increase as long-term-care services shift from nursing homes and other care facilities to private homes. By 2026, the home care population will need 4.2 million more home care workers, which is why a direct-care occupation is such a highly regarded career opportunity.”
11. As part of its national recruitment efforts to hire 30,000 caregivers in 2020, Right at Home is actively hiring people from a variety of different demographics who may not fit the traditional caregiver role, but who want to give back to their community and earn extra income. The brand is also educating franchisees on how to become a local employer of choice.
12. Future Right at Home caregivers should note that the brand provides various levels of care and assists caregivers who need specialized training. The brand also has franchisees who partner with local Certified Nursing Assistant schools and offer tuition assistance.
13. Flair said, “Right at Home is leading the charge to change the narrative about caregiving as a profession. Our caregiving heroes do so much to help clients live independently, and they deserve to be recognized as professionals who surpass expectations to improve the quality of life for seniors and adults with disabilities. We are open to speaking with those from all walks of life, all ages and all backgrounds who want to start the next chapter of their lives with a fulfilling, enriching career as a Right at Home caregiver.”
14. Right at Home was founded in 1995 by Allen Hager in Nebraska. Hager had worked as a hospital administrator for many years and watched many of his patients – especially seniors – leave the hospital and return home, but not necessarily return to health. Once these patients returned home, many were unable to care for themselves as they recovered. Hager wanted to fill this niche and help these patients live healthy lives.
15. Before starting Right at Home, Hager talked to dozens of families to understand the different kinds of challenges they faced and what kind of care would help. Then Hager 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.
16. Right at Home was successful from the beginning and five years later, in 2000, Hager began offering franchises around the country. Today, there are Right at Home locations across the United States as well as internationally in countries such as Canada, Australia, Japan, China, Ireland, the Netherlands, and the United Kingdom. Hager is still running Right at Home as its executive chairman.
Entrepreneur’s Franchise 500
17. Right at Home ranked No. 340 on Entrepreneur’s 2020 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 2019 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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 432
- Outlets at the End of the Year: 465
- Net Change: +33
- Outlets at the Start of the Year: 465
- Outlets at the End of the Year: 475
- Net Change: +10
- Outlets at the Start of the Year: 475
- Outlets at the End of the Year: 471
- Net Change: -4
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 0
- Net Change: -1
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
- 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
- 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, 2018 and ending December 31, 2018.
- 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 308 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, 2018 through December 31, 2018. 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.
61 Months Plus