Right at Home Franchise Review – Average Net Billings, Gross Margin, Office Payroll, Number of Caregivers Placed and Hours Worked Per Week (2020 FDD) | Franchise Chatter

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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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
  • Section V – Presentation and analysis of Right at Home’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
  • 2019 average, median, high, and low net billings and average percent increase over 2018 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 2019, respectively
  • 2019 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 2019 that reported net billings, with 2019 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, 2018, and 2019 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
  • 2019 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, 2019 and ending December 31, 2019

Section I – Background Information

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

Launches Fundraising Campaign for the American Red Cross

1.  Right at Home, a leading international in-home care provider, has been caring for seniors, wherever they call home, for 25 years. The brand’s mission, to improve the quality of life for those it serves, is evident in the 50,000-plus seniors it cares for each year. During the COVID-19 pandemic, seniors need everyone’s help because older adults are some of the most adversely affected by the coronavirus. Right at Home caregivers are working harder than ever to help keep seniors safe and healthy, but they need assistance.

2.  Right at Home created T-shirts with the slogan, “Because Someone I Love Is a Senior.” The shirts are a symbol that we can all do the inconvenient things, such as social distancing, hand-washing, and sheltering in place, to help stop the spread of COVID-19. For each shirt sold through May 31, 2020, Right at Home donated $5 to the American Red Cross COVID-19 response.

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3.  Margaret Haynes, chief operating officer of Right at Home, said, “We recognize that life-saving blood transfusions don’t stop during a crisis, and as we head into severe weather season, the Red Cross disaster relief program is ready to provide assistance to those who will be affected by hurricanes, tornadoes and related events. We are committed to helping the Red Cross maintain its blood bank supplies and supporting its disaster relief program so they can serve those in need.”

4.  Those interested in helping Right at Home’s cause could:

  • Purchase T-shirts at https://www.ILoveASenior.com.
  • Post to social media a picture or video of you wearing the shirt and share how a senior loved one has affected your life. Use #SomeoneILoveIsASenior, #RightatHome, #LoveIsRightatHome, and/or #RightatHomeCares.
  • Ask friends and family to consider supporting the effort by purchasing shirts and postings selfies on Facebook, Instagram, and Twitter wearing the shirts and using the SomeoneILoveIsASenior hashtag.

Teams Up with TruBlue Total House Care to Provide Complete In-Home Solutions for Seniors

5.  In early October 2020, TruBlue Total House Care, the unique full-service home maintenance franchise, and Right at Home, a leading in-home care provider, announced a new and innovative Preferred Provider Agreement between the two companies. With this agreement, TruBlue will be a preferred house care provider for Right at Home, and Right at Home will be a preferred in-home care provider for TruBlue.

6.  TruBlue is a full-service home maintenance company that specializes in working with seniors and families by offering services inside and outside the home, including senior home safety services and modifications, fall prevention, handyman repairs, cleaning services, yard work, seasonal services, and minor home renovations, both through individual services and through their senior-friendly monthly House Care Plus program.

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7.  Right at Home is a leader in the in-home senior care industry with more than 600 franchise locations domestically and internationally. Their trained, professional caregivers provide quality in-home care for seniors and adults with disabilities who need some assistance to maintain their independence. Right at Home operates through independently owned and operated home care franchisees.

8.  Sean Fitzgerald, president of TruBlue, said, “Aging in place starts with the home. Our goal is to help seniors age worry-free in their own homes and provide peace of mind to their families. Right at Home has done a terrific job caring for seniors and adults with disabilities. By partnering with Right at Home, we can ensure our clients find in-home care as their needs change. We can also help Right at Home’s clients with needed home modifications and ongoing repairs and maintenance to ensure the home environment remains safe. It’s an exciting partnership that truly provides the missing link for longer and more effective ‘aging in place’ living.”

9.  As part of being a preferred provider, TruBlue franchisees will be offering expanded inside and outside senior home safety assessments and providing discounts for services for Right at Home’s clients. Fitzgerald added, “Thanks to Right at Home for being so innovative with this vital collaboration, a safe and properly maintained home is now within the reach of more clients and viewed as a key component of their senior care equation.”

10.  Brian Petranick, president and CEO of Right at Home, added, “We identified that one of the biggest challenges to helping seniors age in place is making sure that the home environment is safe. By partnering with TruBlue, we have a trusted partner we can rely on to provide senior home safety assessments, home modifications, fall prevention, and ongoing home maintenance and repairs. Right at Home and TruBlue both have the goal of providing services that give seniors the ability to age safely and comfortably at home for many enjoyable years, so this partnership provides real solutions for families.”

11.  Older Americans are striving to age in place, with nine out of 10 stating their intent on staying in their home, as reported by the National Council on Aging. TruBlue and Right at Home are poised to make a collaborative impact as people look to stay in their homes longer – especially during the COVID-19 pandemic. “Supporting a large home care organization like Right at Home means we need to grow rapidly and in multiple markets around the country,” Fitzgerald said. “We now need to find quality franchisees across the U.S. so we can support more of the Right at Home territories and their clients throughout the country.”

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Company History

12.  Right at Home was founded in 1995 by Allen Hager in Nebraska. Hager had spent many years in healthcare as a hospital administrator. While in the hospital environment, he watched many of his patients – especially seniors – leave the facility and return home, but not necessarily return to health. Once home, a lot of his former patients were unable to care for themselves. Hager felt that with the right kind of help, most of these people could lead healthy, happy lives in their own homes. He recognized that there weren’t many companies offering this type of help, so he developed the Right at Home concept.

13.  After a few years of refining Right at Home’s business model, Hager began franchising the concept in 2000. Over the next few decades, Right at Home continued to expand around the United States as well as internationally, particularly in Japan, Canada, the United Kingdom, Australia, China, Ireland, and the Netherlands. Hager now serves as the company’s executive chairman, while Brian Petranick is the current CEO.

Entrepreneur’s Franchise 500

14.  Right at Home ranked No. 214 on Entrepreneur’s 2021 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 2020 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 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

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

2018

  • Outlets at the Start of the Year:  475
  • Outlets at the End of the Year:  471
  • Net Change:  -4

2019

  • Outlets at the Start of the Year:  471
  • Outlets at the End of the Year:  476
  • Net Change:  +5

Company-Owned

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

2019

  • 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, 2020 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, 2019 and ending December 31, 2019.
  • 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 306 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, 2019 through December 31, 2019. 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.

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