Right at Home Franchise Kit
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1 Right at Home Franchise Kit
2 INTRODUCTION TO RIGHT AT HOME Right at Home was one of the first companies to enter into senior care and is a leader in the in-home care industry. We care for people who don t need an institutional setting, but still need some assistance to live at home. The demand for in-home senior services has never been greater. An aging population, shorter hospital stays and a general preference for aging at home are fueling demand for senior services that help preserve independence. In addition, families are struggling to provide appropriate levels of care for their aging loved ones, while also trying to fulfill the normal responsibilities associated with raising their own children. Our services help the busy Sandwich Generation meet all of their commitments. With more than 450 locations in nine countries and $306 million in system-wide revenue in 2014, Right at Home is one of the largest home care franchise networks in the world, making a positive difference in the lives of others every day. The Right at Home franchise program offers one of the most comprehensive packages available in the industry, including: Large protected territories, detailed initial and ongoing training, and timesaving vendor relationships and national accounts. Relevant, customized franchisee support that is focused on providing excellent client care, as well as franchisee profitability. Executive team leadership with more than five decades of home care experience to guide you. An opening timeline that averages just over 104 days from contract signing to business opening. A fulfilling opportunity to grow a business while providing a muchneeded service to your community. If you have a passion for building a business that serves others, and you want to affiliate yourself with a clearly established industry leader, we encourage you to keep reading to learn more about Right at Home. When I started researching businesses, I was looking for a recession resistant business with low startup costs and a growing customer base. I didn t want retail or food, and I didn t want a transactional business where I had to find new customers to buy my product or service each time. I wanted a business where I could find a customer once and keep them for a long time. Right at Home was the perfect fit for my family and I, and the best part is that I am making a real difference in my community. Jim Hutchinson, Franchisee, Reading, PA
3 INTRODUCTION TO RIGHT AT HOME HISTORY Allen Hager founded Right at Home after spending nearly a decade in hospital administration. While in the hospital environment, he watched many patients especially seniors leave the facility and return home, but not necessarily return to health. Once home, many of his former patients were unable to care for themselves. Allen knew that with a little help, most of these people could lead healthy, happy lives in their own homes. But he also knew that there were very few companies that offered this kind of assistance. Before he considered opening an in-home care business, he talked to dozens of families to understand the different kinds of challenges they faced and what kind of care would be most helpful. He also became a Certified Nursing Assistant to experience first-hand the needs of people who were still living in their home but who needed professional assistance. In 1995, Allen started the first Right at Home in Omaha, Nebraska. Five years later, he started branching into other regions of the country by carefully selecting franchisees who shared his passion for caring for those in their community. SERVICES Right at Home provides trained, bonded and insured caregivers to families with seniors or disabled adults. We offer a variety of customized services to families based upon their individual needs. Our services fall into several categories: Companionship/Homemaking Physical Assistance Hygiene Wellness Skilled Nursing* Special Care Situations (Alzheimer s, stroke recovery, etc.) * Not all locations offer skilled nursing and there is no requirement to do so. My initial inclination was to start my business from scratch, but I realized I didn t want to reinvent the wheel every step of the way. I knew that it wouldn t be as efficient or effective to start the business from the ground up. Right at Home already has the systems, processes, software, technology, marketing and years of experience to put me so far ahead of where I might start by myself. There is strength in numbers and that was clearly validated to me by the franchise owners I asked. Brooke Fredericks, Franchisee, Medford, OR
4 WHY RIGHT AT HOME A HOME CARE COMPANY DEVELOPED AND MANAGED FOR THE LONG TERM Right at Home is a home care company first and foremost, founded and managed by people who have made their careers in home care and health care. We re not a big franchise company that followed others into this popular industry. Franchising is simply the business strategy we utilize to grow the Right at Home brand. Allen Hager worked very hard to comprehend every element of the home care industry before starting Right at Home. He made sure his business model was honed and sustainable before trying to expand it. As he began to franchise, Allen also assembled a management team with rich home care and health care experience. This provided a stable foundation for the franchise. It also nurtured its growth into the international organization it has become. WHY US THE BUSINESS CASE Favorable Demographics and Trends An aging population, shorter hospital stays and a preference for aging at home are fueling the demand for in-home senior services. Technology Resistant Care can t be provided by the Internet and it can t be outsourced overseas. Technology certainly plays a role in our business, but care has to be provided by compassionate caregivers. Repeat Business Clients don t typically hire us for just one day. They hire us to fulfill a family need on an ongoing basis. The case may only last a few weeks or it may last for years. Each client represents a recurring revenue stream. No Retail Location or Inventory Right at Home franchisees operate out of small, affordable, professional offices. Our main product is care, so there s no costly inventory that can eventually become obsolete. Flexibility to Add Medical Care The choice to add nursing services to your business is yours, as is the timing of this decision. There is no requirement to add these services. If you choose to offer nursing services, you can do so on your own schedule when you feel you and your business are ready. A Winning Culture When you speak with our management team and our franchisees, you ll see firsthand the winning culture that all of us enjoy at Right at Home. We encourage franchisee involvement at every level because we know when we work together, we can be an even stronger force in the marketplace. Comparably Small Investment - Entrepreneur Magazine has rated Right at Home as a Top Low- Cost Franchise Opportunity three times.
5 WHY RIGHT AT HOME OWNER BENEFITS Unlike many franchise opportunities, senior care offers benefits well beyond the possibility of monetary growth. This isn t just an investment in a business; it s also an investment in your community and your personal fulfillment. A little assistance really does go a long way. You provide better living. When you leave your office at the end of the day, you haven t just made a dollar; you ve made someone s day. Senior care is a necessary service that helps an aging population remain independent in comfortable surroundings. Your care and the resulting independence is often the difference between someone feeling happiness rather than helplessness. You provide stability and affordability. Family relationships are fragile. When something changes, it can often upset the balance of the entire unit, emotionally and financially. Your presence and services can make a difficult situation easier for the entire family at an affordable cost. You provide fulfilling employment. Most franchises create jobs; you create meaningful jobs. You re not just helping your employees put food on the table; you re providing a sense of accomplishment to those who are able to enrich the lives of others. With Right at Home s proven track record, you re also putting money into your community so that it can grow and thrive. INDUSTRY LEADERSHIP PROGRAMS Right at Home has launched several programs to assist franchisees in becoming stronger, healthier, and more profitable businesses. In these exciting programs, we offer valuable benefits and training to help Right at Home businesses of all sizes and volume become more established and knowledgeable in the in-home healthcare field. RightTransitions SM Currently, one in five Medicare beneficiaries who leave the hospital are readmitted within 30 days. Studies estimate that up to 76% of these readmissions may be preventable. The average cost per preventable readmission is $7,200. In 2013 Medicare reduced payments for all readmissions and hospitals with high readmissions rates will face a penalty, so hospitals now have a financial incentive to ensure their patients are adequately cared for once they are discharged. Right at Home created a package of services called RightTransitions to assist hospitals, as well as other providers, in the reduction of preventable hospital readmissions and associated costs. The program helps ensure a safe transition for patients back into their homes where minor oversights, such as medication errors, can cause an unexpected trip back to the hospital.
6 WHY RIGHT AT HOME Right at Home conducted a three-year home pilot study in conjunction with Forsyth Hospital in Winston- Salem, NC, with funding from the Duke Endowment. When including Right at Home s RightTransition services, the following results were recorded: 65% reduction in preventable readmissions 99% patient satisfaction rate Hospital savings of $1.1 million RightCare Right at Home s RightCare program is focused upon improving the current business model and the critical contact points relating to the client experience. Both client and employee satisfaction can be measured and improved by defining stakeholder values, designing and implementing appropriate change, and measuring results. The RightCare program benefits franchisees by: Identifying points to improve satisfaction and retention rates Offering a centralized reporting system with access to all client and employee performance data Providing performance trending comparisons compared to regional and national industry data Fostering a sharing of best practices The RightCare program ensures that the Right at Home brand is being delivered consistently across all channels while improving satisfaction and retention for employees, franchisees and clients. By providing a Web-based portal through which top trends for individual franchisees, regions and groups can be identified, appropriate training, support and praise can be positioned companywide. Profit Mastery Program Business Resource Services (BRS), a Seattle-based company specializing in performance management for owners and independent business managers, has designed the Profit Mastery program to assist franchisees in becoming better, more profitable franchise owners. Right at Home has partnered with BRS, a company with considerable, long-term experience in the franchise industry, to address the needs of Right at Home franchisees and further improve our Right at Home business model. The Profit Mastery program, which has become the standard in performance management during the past 15 years, includes three main components: A foundation of financial management and education Financial benchmarking Performance groups to provide accountability and discipline The Profit Mastery program enables Right at Home franchisees to manage their businesses more effectively and efficiently. Franchise businesses will be compared in performance groups to highlight differences, create goals and action plans, and to share best practices.
7 RIGHT AT HOME FRANCHISEE PROFILE There s no magic formula or personality test that will tell you, without question, whether or not you should be in this business. There s also no perfect age, gender or marital status that will guarantee success. But there are some common themes. Once you complete your research, including talking with several of our existing franchisees, you ll have a much better idea of whether or not this business is a good fit for you. What You Need Passion. For some, it s a passion for making a difference in the lives of families in their local community. For others, it s a passion for building a successful business and for creating independence for their own family through business ownership. Whatever your motivation is, you must have a passion for what you re doing in order to be successful. What You Do Not Need Most franchisees don t have previous healthcare experience and most have never owned their own business. The fact is that many of our franchisees are from the corporate world. They ve taken their business skills that were honed by working for others and put those skills to work for themselves in their own business. FRANCHISEE PROFILES Typically, Right at Home has attracted franchisees who fall into three main categories: 1. Independence Seekers. These tend to be business-oriented people who are attracted to senior care because of the potential for growth. They want to build a single unit business that serves people in their local community, while also providing independence, flexibility and a quality lifestyle for their own family. 2. Mission-Driven Providers. These are people who are drawn to this business because it improves the quality of life for others. In some cases they ve seen the need for this business firsthand in their own family, so they know the positive impact our services can have. 3. Empire Builders. About 10% of Right at Home owners fall into this category. These are people that want to build a substantial, multiple unit business of up to three territories. When I decided to franchise with Right at Home, I had no previous experience in the senior care industry. There was a lot of room for me to make mistakes. Right at Home had already done the guesswork for me when I entered the system. Plus, there are a lot of franchisees that are at your fingertips ready to answer any questions you may have. The franchisee community with Right at Home is very tight knit. Bill Youngblood, Franchisee, Gainesville, GA
8 COSTS AND CRITERIA We have a simple foundation needed to become a Right at Home in-home care franchise owner. You need to commit to: The mission and principles of Right at Home Your business Your clients Your community These commitments are non-negotiable. You ll also need to commit financially. Right at Home s initial franchise fee to become a homecare franchise owner is $47,500. Additionally, potential franchisees should possess a minimum of $150,000 in liquid funds. The following costs to open a Right at Home in-home care franchise are excerpted from the Franchise Disclosure Document (FDD) and are estimated. Type of Expenditure Low High Initial Franchise Fee $45,000 $47,500 Real Estate/Rent $2,700 $4,600 Rent Deposits $0 $3,300 Leasehold Improvements $0 $3,000 Insurance $2,500 $4,500 Furniture and Fixtures $2,000 $5,000 Computer Hardware and Software $3,700 $7,800 Other Office Equipment & Supplies $800 $2,000 Training (Travel and Hotel) $2,550 $5,600 Initial Opening Marketing $500 $2,100 Permits and Licenses $200 $2,000 Professional Fees $1,000 $3,050 Signage $200 $1,200 Additional Funds (3 Months) $17,000 $40,000 Total $78,150 $131,650
9 DEVELOPMENT TIMELINE AND PROCESS It typically takes days for us to complete our research on each other. During this time, we want to get to know you as a person your background, your accomplishments and how business ownership will help you reach your goals. We also give you the opportunity to get to know us as individuals and as a company, and to get answers about everything you need to know prior to moving forward with us. After the Franchise Agreement is signed, most franchisees open for business within three to four months. Below you ll find a summary of each step of the research process Initial Call During our first call, we ll talk about you, your background, your family and your goals for owning a home healthcare franchise. We ll discuss the financial investment parameters and we ll verify that your desired territory is still available. Day-to-Day Operations Overview This is an in-depth discussion of how a typical Right at Home office operates. We ll discuss: Initial office setup Staffing Caregiver recruiting and training Caregiver retention and incentives Marketing Client payments Proprietary Business Tools During this step, we ll discuss the business tools that our senior care franchise provides for franchisees, including those that assist in sales conversion, employee screening, reporting and key performance indicators (KPI). Training and Support This discussion includes an in-depth analysis of our RightStart Program, a support system that was developed for your first 12 to 18 months of being a Right at Home franchisee. We ll also discuss the ongoing support we provide for all of our franchisees, regardless of their time in business. Franchise Disclosure Document (FDD) Once you complete the initial steps in the Research and Qualification Process, we ll send you our FDD via overnight and/or electronic delivery. The FDD contains everything you need to know about Right at Home, including a Financial Performance Representation (FPR) that provides a detailed summary of how our offices perform. Typically, we ll have two calls concerning the FDD. The first call helps ensure you can find the information you need. The second call answers your questions about the document and its contents.
10 DEVELOPMENT TIMELINE AND PROCESS Franchisee Validation After we ve answered your questions about the FDD, we ll add you to our Validation List. You will now be able to speak with the people who may soon be your colleagues. You can ask the franchisees anything and get all of the information you need from someone who runs a home care franchise just like the one you re considering. Of course, these franchisees time is valuable. So they ll only answer your call once you ve been placed on the Validation List. We provide this list to them daily, so there s no delay once you re ready to talk to them. Discovery Day Once you re comfortable with the FDD and have gone through Franchisee Validation, you ll have a phone interview with a member of our executive team. After that call, you may be invited to attend a Discovery Day at our Omaha, Nebraska world headquarters. On Discovery Day, you ll meet one-on-one with key Right at Home team members who will be responsible for assisting you in opening your in-home care franchise, helping you train your employees and supporting you in both the short-term and long-term operational phases of your business. Approval and Agreement Execution On the first business day after Discovery Day, we ll notify you of your approval status. If we decide together that it seems like a mutually beneficial relationship, we will guide you through the signing of documents and immediately start working with you on your pre-opening checklist. It may feel like the end, but it s actually just the beginning! You become very close to the families. The daughters and sons [whose parents] you re helping can t thank you enough when they realize how valuable this care is. Giampa left the hustle and bustle of Wall Street for a much more satisfied job where compassion is the main motivator, not monetary success. I see myself doing this for the rest of my life, Giampa said. I am much happier; I m happier working for myself, and happier working for other people. Louis Giampa, Franchisee, White Plains, NY
11 NEXT STEPS ARE YOU READY TO TAKE THE NEXT STEP? You ve already taken the first step toward reaching your goal of owning your own business. But, the information in this download kit is only part of the story. If you re intrigued by what you ve read so far, and you re curious to see how owning your own home care business could change your life, we encourage you to engage with us today to learn more: Right at Home Inc Center St. Suite 150 Omaha, NE Toll Free: None of the communications made through this document should be construed as an offer to sell any Right at Home franchises in, nor is any such communication directed to, residents of any jurisdiction requiring registration of the franchise before it is offered and sold in that jurisdiction. No Right at Home franchises will be sold to any resident of any such jurisdiction until the offering has been exempted from the requirements of, or duly registered in and declared effective by, such jurisdiction and the required Franchise Disclosure Document has been delivered to the prospective franchisee before the sale in compliance with applicable law. If you should have any questions concerning the registration status of Right at Home franchises in your jurisdiction, please contact Franchise Development at The (Right at Home) franchise was attractive to me because there is a system in place, expertise of the corporate staff at my finger tips and support that they would provide to me anytime I picked up the phone. In addition to the corporate support, I also have the support of other Right at Home franchisees. They too will be able to give me advice and strategies that have helped them become successful. The wealth of knowledge at my fingertips is something you just can t get outside of a franchise. Lorette Oliver, Franchisee, Temecula, CA
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