Year Business Began: 1995
Franchising Since: 2000
Headquarters: Omaha, Nebraska
Estimated Number of Units: 690
Franchise Description: The franchisor is Right at Home, LLC. Franchisees will operate a Right at Home business that provides hands-on personal care, non-medical care, in-home care assistance and companionship care services to seniors and other adults, and (i) supplemental staffing services for nursing homes, hospitals and other medical institutional settings; (ii) skilled care and other in-home medical care; and (iii) other related products, materials, and equipment.
Training Overview: The franchisor will provide its RightStart Training Program to the operating principal and up to two other persons, one of whom may be another owner or the general manager. The RightStart Training Program consists of three phases that take place typically over a three to four week period. Within six months after franchisees begin operating their franchised business, the franchisor will send a representative to the franchised business premises for approximately two days for the purpose of facilitating the early stages of the franchised business. The franchisor periodically may provide and require that previously trained and experienced franchisees, and their managers, attend and successfully complete refresher and updated training programs to be conducted at its headquarters or at another site it designates. To be eligible to offer specialized nursing services, franchisees and/or a qualified person designated by the franchisee must successfully complete the franchisor’s training program relating to specialized nursing services. After the office for their franchised business has been open for approximately 12-24 months and as determined by the franchisor, franchisees will be required to complete its Profit Mastery University. The franchisor may periodically conduct an additional training session and if it does, it will determine the duration, curriculum, and location.
Territory Granted: Franchisees will receive a “designated area.” The designated area will be defined by zip codes and include a population of at least 15,000 people who are age 65 and older. A list of the zip codes will be attached to the Franchise Agreement. Franchisees maintain rights to their designated area even though the population increases. Franchisees must confine the performance of all core services and ancillary services and the supply of all related products, materials and equipment to clients located in their designated area, except as the franchisor may approve. Franchisees do not have the right to use other channels of distribution, such as the Internet, telemarketing or other direct marketing to make sales outside of their designated area, unless otherwise permitted in writing by the franchisor. In order for franchisees to maintain the exclusivity rights to their designated area, beginning on their 13th month of operation of their franchised business (unless they are an existing franchisee acquiring an additional location), they will need to meet defined minimum revenue targets.
Obligations and Restrictions: Upon executing the Franchise Agreement, franchisees will designate and retain an individual to serve as their operating principal. The operating principal will have the full authority to act on the franchisee’s behalf in all matters related to the performance of the Franchise Agreement and the operation of the franchised business. If franchisees are an individual, they will perform all the obligations of the operating principal. Franchisees, their spouse, and all holders of a legal or beneficial interest in the franchisee entity must personally guarantee the obligations of franchisee to the franchisor and enter into a non-compete agreement. Franchisees must offer and sell only those services and products that the franchisor approves as part of the system. Franchisees may not offer any products or perform any services that the franchisor has not authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If franchisees continuously comply with all of the provisions in the Franchise Agreement, they have three separate options intended to renew for the period of five years each, subject to the terms and conditions of the then-current form of the Franchise Agreement.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation. The franchisor is unable to estimate whether franchisees will be able to obtain financing for all or any part of their investment, and if they are able to obtain financing, the franchisor cannot predict the terms of such financing. The franchisor will not receive payment or other consideration from any person or persons for placing a franchisee’s financing with a lender.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Real Estate/Rent | $2,550 | $6,150 |
| Rent Deposits | $0 | $4,300 |
| Leasehold Improvements | $0 | $3,000 |
| Insurance | $6,000 | $10,000 |
| Furniture and Fixtures | $2,700 | $6,000 |
| Computer Hardware and Software | $2,750 | $7,750 |
| Other Office Equipment and Supplies | $1,000 | $6,000 |
| Training | $3,000 | $8,000 |
| Policies and Procedures Manual | $750 | $750 |
| Integrity Selling Training Program | $708 | $708 |
| Coaching for Integrity Selling | $186 | $186 |
| Initial Opening Marketing | $750 | $4,350 |
| Permits and Licenses | $200 | $2,000 |
| Professional Fees | $300 | $3,500 |
| Signage | $0 | $4,000 |
| Additional Funds (3 months) | $17,000 | $40,000 |
| ESTIMATED TOTAL | $87,394 | $156,194 |
| Type of Fee | Amount |
|---|---|
| Continuing Royalty | The greater of 5% of net billings 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. |
| Audit | Cost of audit and inspection plus interest on underpayment. |
| Late Fee | $50 per week for each item not submitted when due. The franchisor has the right to increase this up to $250, plus the highest allowable legal rate for open account business credit, not to exceed 1.5% per month. |
| Insurance Policies | Amount of unpaid premiums plus the franchisor’s administrative fee (if any). |
| Renewal Fee | 10% of the then-current franchise fee at the time of the renewal for each renewal of a term approved by the franchisor. |
| Transfer Fee | The franchisor may charge up to 50% of the then-current franchise fee for a franchise at the time of the transfer or 100% of the then-current franchise fee if a franchisee consultant or broker commission is payable. |
| Additional Manager Training | Current rates are $300 per day plus expenses. |
| Additional Onsite Assistance | Current rates are $300 per day per person plus expenses. |
| Policies and Procedures Manual | Current rates are $750 upfront fee plus $100 annual subscription. |
| Integrity Selling Training | Current rates are $708 per person. |
| Coaching for Integrity Selling Training | Current rates are $186 per person. |
| Educational Programs, Seminars, Convention | Franchisees are required to pay their expenses as well as their employees’ expenses in attending these educational programs, plus the fee the franchisor may charge to cover its costs of providing such programs. |
| Cost of Enforcement or Defense | All costs including attorneys’ fees. |
| Indemnification | All costs including attorneys’ fees. |
The above information has been compiled from the FDD of Right at Home. Year of FDD: 2022.
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