In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Right at Home franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Right at Home franchise, based on Items 5 and 6 of the company’s 2023 FDD
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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. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Right at Home outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Right at Home franchise opportunity
Section V – Presentation and analysis of Right at Home’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, high, and low net billings for Right at Home franchised offices in business for 61 months or more, 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 2022, respectively
- 2022 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 percentage of Right at Home franchised businesses operating for the full 12 months in 2022 that reported net billings, with 2022 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
- 2018, 2019, 2020, 2021, and 2022 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
- 2022 average and median number of caregivers placed with clients per week and caregiver hours worked per week for Right at Home franchised offices with a single license for the designated software operating for at least 12 months during the period beginning January 1, 2022 and ending December 31, 2022
Section VI – Key ratios, comparables, computations, and analyses for the Right at Home franchise opportunity (exclusive content for Platinum subscribers)
Section I – Right at Home Franchise Costs
- Right at Home franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $49,500
- Real Estate/Rent: $2,550 to $6,150
- Rent Deposits: $0 to $4,300
- Leasehold Improvements: $0 to $3,000
- Insurance: $6,000 to $10,000
- Furniture and Fixtures: $2,700 to $6,000
- Computer Hardware and Software: $3,750 to $7,750
- Other Office Equipment and Supplies: $1,000 to $6,000
- Training: $3,000 to $8,000
- Right at Home Personal Care Policy and Procedure Manual: $750
- Setup Fee and First Year Annual Subscription Fee for Right at Home Personal Care Policy and Procedure Manual: $125 to $350
- Integrity Selling Training Program: $708
- Coaching for Integrity Selling: $186
- Applicant Tracking System (ATS) Payment: $200 to $1,125
- Initial Opening Marketing: $750 to $4,350
- Permits and Licenses: $200 to $2,000
- Professional Fees: $300 to $3,500
- Signage: $0 to $4,000
- Additional Funds for 3 Months: $17,000 to $40,000
- Total Estimated Right at Home Franchise Costs: $88,719 to $157,669
Section II – Right at Home’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Right at Home’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $49,500
- Continuing Royalty: the greater of 5% of Net Billings (“Royalty Fee”) or the Minimum Royalty per quarter
- Local Advertising: 1% to 2% of Net Billings
- Brand Marketing and Promotion Fee: 2% of weekly Net Billings on the first $1,000,000 of Net Billings, plus 1% of weekly Net Billings on the next $2,000,000 of Net Billings for each calendar year
Section III – Number of Franchised and Company-Owned Right at Home Outlets
Franchised
2020
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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, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 482
- Net Change: +8
2021
- Outlets at the Start of the Year: 482
- Outlets at the End of the Year: 483
- Net Change: +1
2022
- Outlets at the Start of the Year: 483
- Outlets at the End of the Year: 497
- Net Change: +14
Company-Owned
2020
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 5
- Net Change: +1
2021
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 22
- Net Change: +17
2022
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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, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, 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. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 22
- Outlets at the End of the Year: 28
- Net Change: +6
Section IV – News Updates on the Right at Home Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Right at Home Franchise (Item 19, 2023 FDD)
- 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 Franchised Business will depend largely upon your personal abilities, your use of those abilities, and your market. The financial results of your Franchised Business 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, 2022 and ending December 31, 2022.
- 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 350 Franchised Offices.
- Right at Home has not audited this information, nor has it independently verified this information. The information is for the period commencing January 1, 2022 through December 31, 2022. 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 or More
- Total Offices: 316
- Average Net Billings: $1,519,451.29
- Median Net Billings: $1,153,006.11
- Number and % of Franchised Offices That Attained or Exceeded the Average Revenue Amount: 109 / 34%
- Number and % of Franchised Offices That Attained or Exceeded the Median Revenue Amount: 158 / 50%
- Highest Office Net Billings: $13,121,733.24
- Lowest Office Net Billings: $53,190.13
49 to 60 Months in Business
- Total Offices: 4
- Average Net Billings: $696,622.16
- Median Net Billings: $758,429.14
- Number and % of Franchised Offices That Attained or Exceeded the Average Revenue Amount: 3 / 75%
- Number and % of Franchised Offices That Attained or Exceeded the Median Revenue Amount: 2 / 50%
- Highest Office Net Billings: $939,348.35
- Lowest Office Net Billings: $330,282.02
37 to 48 Months in Business
- Total Offices: 12
- Average Net Billings: $1,069,119.79
- Median Net Billings: $859,148.97
- Number and % of Franchised Offices That Attained or Exceeded the Average Revenue Amount: 4 / 33%
- Number and % of Franchised Offices That Attained or Exceeded the Median Revenue Amount: 6 / 50%
- Highest Office Net Billings: $3,215,412.56
- Lowest Office Net Billings: $58,944.05
25 to 36 Months in Business
- Total Offices: 10
- Average Net Billings: $844,059.28
- Median Net Billings: $744,511.56
- Number and % of Franchised Offices That Attained or Exceeded the Average Revenue Amount: 4 / 40%
- Number and % of Franchised Offices That Attained or Exceeded the Median Revenue Amount: 5 / 50%
- Highest Office Net Billings: $1,798,772.18
- Lowest Office Net Billings: $130,923.24
13 to 24 Months in Business
- Total Offices: 11
- Average Net Billings: $543,817.17
- Median Net Billings: $529,528.16
- Number and % of Franchised Offices That Attained or Exceeded the Average Revenue Amount: 5 / 45%
- Number and % of Franchised Offices That Attained or Exceeded the Median Revenue Amount: 6 / 55%
- Highest Office Net Billings: $1,317,353.44
- Lowest Office Net Billings: $19,161.53
All Offices Open One Year or More Ending 2022
- Total Offices: 353
- Average Net Billings: $1,445,283.61
- Median Net Billings: $1,074,779.65
- Number and % of Franchised Offices That Attained or Exceeded the Average Revenue Amount: 119 / 34%
- Number and % of Franchised Offices That Attained or Exceeded the Median Revenue Amount: 177 / 50%
- Highest Office Net Billings: $13,121,733.24
- Lowest Office Net Billings: $19,161.53
- Table 1 includes data reported by 353 Franchised Offices operated by franchisees that reported Net Billings during 2022.
- There were 24 franchises that transferred ownership in 2022. The date used to report the Net Billings for those franchises was the date of the original franchise.
Part 1A – Net Billings Information by Franchisee Entity for Franchised Businesses Open at Least One Year
- Number of Franchisee Entities: 260
- Total Number of Franchised Businesses Owned by Franchisee Entities: 468
- Average Net Billings Per Franchisee Entity: $2,302,071.53
- Number and % of Franchisee Entities Meeting or Exceeding Average: 94 / 36%
- Median Net Revenue Per Franchisee Entity: $1,673,359.84
- Number and % of Franchisee Entities Meeting or Exceeding Median: 130 / 50%
- Highest Franchisee Entity Net Revenue: $16,492,974.30
- Lowest Franchisee Entity Net Revenue: $19,161.53
Part 2 – Net Billings of Franchised Businesses
- Table 2 is the data reported for all of the 468 Franchised Businesses operating for the full 12 months from January 1, 2022 to December 31, 2022 that reported Net Billings.
2022 Net Billings: Over $1,000,000
- Number of Franchised Businesses: 227
- Percent: 49%
2022 Net Billings: $750,001 to $1,000,000
- Number of Franchised Businesses: 69
- Percent: 15%
2022 Net Billings: $500,001 to $750,000
- Number of Franchised Businesses: 68
- Percent: 15%
2022 Net Billings: $250,001 to $500,000
- Number of Franchised Businesses: 66
- Percent: 14%
2022 Net Billings: $0 to $250,000
- Number of Franchised Businesses: 38
- Percent: 8%
2022 Net Billings: Total Franchised Businesses
- Number of Franchised Businesses: 468
- Percent: 100%
Part 3 – Average Business Performance as a Percentage of Net Billings
- Table 3 sets forth the year-by-year average business performance of Right at Home franchisees based on those costs listed and then measured against their Net Billings.
- In Table 3, you will find financial data reported only from those Franchised Businesses that had been open for at least the entire year indicated.
- Gross Margin means Net Billings less the Cost of Goods Sold.
- Cost of Goods Sold includes all direct costs related to direct care staff, including wages, workers’ compensation insurance, crime-fidelity employee dishonesty coverage, and other professional and general liability insurance.
- Payroll taxes and payroll related insurance are included in the Cost of Goods Sold both for office staff and direct care staff because they were combined in the information reported to the franchisor by these franchisees.
- Office Payroll means all wages for office staff employees. Payroll taxes and payroll related insurance are included in Cost of Goods Sold.
- Marketing costs are those associated with marketing and promoting the business, including such items as local telephone directory advertising, web-based advertising, media advertising, and trade show fees.
2018
- Gross Margin %: 39.50%
- Office Payroll %: 10.50%
- Marketing %: 2.04%
2019
- Gross Margin %: 39.34%
- Office Payroll %: 10.42%
- Marketing %: 2.20%
2020
- Gross Margin %: 39.42%
- Office Payroll %: 12.27%
- Marketing %: 2.42%
2021
- Gross Margin %: 43.41%
- Office Payroll %: 10.75%
- Marketing %: 2.30%
2022
- Gross Margin %: 46.93%
- Office Payroll %: 10.35%
- Marketing %: 2.57%
Part 4 – Average and Median Number of Caregivers and Hours Worked
- Part 4 contains certain information related to the average and median number of caregivers placed with clients per week and the average and median number of hours worked by caregivers per week for Franchised Offices with a single license for the Designated Software operating for at least 12 months during the period beginning January 1, 2022 and ending December 31, 2022.
- The information and figures regarding number of caregivers per week and number of hours worked by caregivers per week presented in Part 4 are based upon information reported to the franchisor by all Right at Home franchisees whose Franchised Businesses had been open for at least 12 months during the period beginning January 1, 2022 and ending December 31, 2022. During such period, all Franchised Businesses offered the same or similar services.
- Right at Home has not audited this information, nor has it independently verified this information. The information has been extracted from actual franchise reports made to Right at Home.
All Offices Open One Year or More Ending 2022
- Number of Franchised Offices With Single Designated Software License: 262
- Average Number of Caregivers Placed With Clients Per Week: 57
- Number and % of Franchised Offices with Single Designated Software License That Attained or Exceeded Average: 96 / 37%
- Median Number of Caregivers Placed With Clients Per Week: 47
- Average Number of Caregiver Hours Worked Per Week: 26
- Number and % of Franchised Offices with Single Designated Software License That Attained or Exceeded Average: 114 / 44%
- Median Number of Caregiver Hours Worked Per Week: 25
Section VI – Right at Home Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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